Dynamic spill-over influences of FinTech innovation development on renewable energy volatility during the time of war in pandemic: A novel insight from a wavelet model

Le Thanh Ha

Economic Analysis and Policy, 2024, vol. 82, issue C, 515-529

Abstract: The research investigates the correlation between FinTech innovation and the index of renewable energy volatility from May 1, 2019, to October 28, 2022, by utilizing cutting-edge multiple wavelet analysis (MWA) techniques, including coherency and gain of partial wavelets. FinTech innovation and the green energy sector exhibit multiple coherencies. These coherencies suggest that three cycles, spanning from January 2020 to June 2020, December 2020 to April 2021, and January 2022 to May 2022, were focused on the high-frequency spectrum (3–68 days). Meanwhile, the other cycles were focused on low frequencies (69–130 days), which coexisted between June 2019 and January 2021 and January 2022 and October 2022. Green bonds and FinTech innovation's partial coherency indicate that modifications to the green bond markets caused shifts in FinTech innovation between June and November of 2019. FinTech innovation is in sync with green bonds pushing from December 2021 to October 2022. The partial consistency of FinTech innovation and sustainable energy demonstrates that both metrics align with the current FinTech innovation cycle, pushing from May 2019 to August 2019 and from December 2020 to July 2021, and both indicators are in sync with ARKF pushing. We also demonstrate how unexpected events like the Ukraine-Russia conflict and the COVID-19 epidemic affect these dynamic connectednesses. Hence, our paper calls for policy designs that promote the role of FinTech development in stabilizing the renewable energy market.

Keywords: Partial wavelet gain; FinTech innovation; Renewable energy volatility; Partial wavelet coherency; Ukraine-Russia conflict; COVID-19 pandemic (search for similar items in EconPapers)
JEL-codes: C22 C51 D53 H1 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:82:y:2024:i:c:p:515-529

DOI: 10.1016/j.eap.2024.03.018

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