Assessing linkages between alternative energy markets and cryptocurrencies

Muhammad Abubakr Naeem, Raazia Gul, Saqib Farid, Sitara Karim and Brian Lucey

Journal of Economic Behavior & Organization, 2023, vol. 211, issue C, 513-529

Abstract: Surmounted environmental concerns and energy challenges have created an augmented awareness among the public and policymakers about alternate energy resources. Using a network approach, this paper aims to investigate the dependence between cryptocurrencies and the alternative energy market using data from January 1, 2018, to December 23, 2021. For this investigation, first, we build a static dependency network for a given set of variables using partial correlations. Then, we demonstrate within-system connections in a minimum spanning tree (MST) to assess the centrality of all variables. Finally, rolling-window estimations are made to exhibit time variations in both dependency and centrality networks. We find that clean alternative markets (SPGCE, ELEVHC & WILCE) and ETH are net risk transmitters to other markets and system-wide net contributors. We also demonstrate how SPGCE is essential for tying together the various parts of the networks and provide convincing evidence of time-varying within-system dependency. Our thorough examination of the dependency analysis offers significant insights to macroprudential regulators, policymakers, and portfolio managers, enabling them to safeguard the most vulnerable markets and choose the best legislative and policy measures to protect investors' interests in the face of unforeseen financial and economic conditions.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167268123001452
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:211:y:2023:i:c:p:513-529

DOI: 10.1016/j.jebo.2023.04.035

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().