Do uncertainties affect clean energy markets? Comparisons from a multi-frequency and multi-quantile framework

Yiying Li, Cheng Yan and Xiaohang Ren

Energy Economics, 2023, vol. 121, issue C

Abstract: Clean energy market has great potential to promote the balance between economic development and environmental protection, and has gradually become one of the vital energy markets. This paper investigates the real effects of external uncertainties from oil price shocks (supply, demand, and risk shocks) and political factors on the clean energy market based on a multi-frequency and multi-quantile framework. The empirical results show that both oil price shocks significantly impact the clean energy market, especially the oil demand shock. Two political factors, economic policy uncertainty and geopolitical risk, also have a one-way influence on the clean energy market. Additionally, the impact of most external uncertainties on the clean energy market is more prominent in the long term than in the short and medium term. Finally, the clean energy market with different market conditions also has different abilities to resist external uncertainties. Our research analyses all the joint distributions between each external uncertainty and the clean energy index in identical time frames. It is helpful for investors to construct more rational investment strategies and for policymakers to make appropriate policy arrangements.

Keywords: Uncertainties; Clean energy markets; Multi-frequency; Multi-quantile (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:121:y:2023:i:c:s0140988323001779

DOI: 10.1016/j.eneco.2023.106679

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