Side Effects and Interactions: Exploring the Relationship between Dirty and Green Cryptocurrencies and Clean Energy Stock Indices

Rui Dias, Mariana Chambino, Rosa Galvão, Paulo Alexandre and Mohammad Irfan
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Rui Dias: Instituto Superior de Gestão, (ISG - Business and Economics School), CIGEST, Lisbon, Portugal and ESCAD – Instituto Politécnico da Lusofonia, Lisbon, Portugal
Mariana Chambino: School of Business and Administration, Instituto Politécnico de Setúbal, Setúbal, Portugal
Rosa Galvão: Department of Accounting and Finance, School of Business and Administration, Instituto Politécnico de Setúbal, Setúbal, Portugal
Paulo Alexandre: Department of Accounting and Finance, School of Business and Administration, Instituto Politécnico de Setúbal, Setúbal, Portugal
Mohammad Irfan: Business School, NSB Academy, India

International Journal of Energy Economics and Policy, 2024, vol. 14, issue 3, 411-416

Abstract: This study aimed to assess whether renewable energy cryptocurrencies such as Cardano (ADA), Ripple (XRP), IOTA (MIOTA), and Stellar (XLM) can be considered hedging assets and safe havens for cryptocurrencies classified as "dirty", such as Bitcoin Cash (BCH), Bitcoin (BTC) Litcoin (LTC), Ethereum (ETH), Ethereum Classic (ETC) and the clean energy stock indices WILDERHILL Clean Energy (ECO) and Clean Energy Fuels (CLNE), from July 6, 2018, to July 6, 2023. The results show that the movements decreased significantly during the Stress period, which includes the events of 2020 and 2022. The Cardano cryptocurrency shows moderate movements, indicating stability and diversification, while Stellar shows moderate movements that suggest resilience. Conversely, XRP shows varied movements, requiring some caution, while IOTA stands out for significant movements associated with sustainable assets. These results interest players operating in these markets when they want to diversify and rebalance their portfolios.

Keywords: Cryptocurrencies; Clean Energies; Comovements; Safe Haven; Portfolio Rebalancing (search for similar items in EconPapers)
JEL-codes: C32 C38 G11 G14 Q42 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2024-03-41

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