Unearthing the hedge and safe-haven potential of green investment funds for energy commodities

Oktay Özkan, Muhammad Saeed Meo and Mehak Younus

Energy Economics, 2024, vol. 138, issue C

Abstract: In an era when the global economy prioritizes sustainability, the significance of green investments resonates more strongly than ever, impacting industries and regions worldwide. This research introduces a novel method, the Rolling Window Wavelet Quantile Correlation (RWWQC) technique, to investigate the safe haven, hedging, and diversification properties of green investments for energy commodities. Our findings reveal that green investments serve as safe havens, hedges, and diversifiers for energy commodities. Furthermore, we highlight that the strength of these roles varies with the investment holding period. These findings offer valuable insights for both individual and institutional investors seeking effective portfolio diversification strategies and carry significant policy implications in the pursuit of sustainable investments.

Keywords: RWWQC; Energy commodities; Green investments; Safe-haven; Hedge (search for similar items in EconPapers)
JEL-codes: G11 Q02 Q56 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:138:y:2024:i:c:s014098832400522x

DOI: 10.1016/j.eneco.2024.107814

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