EconPapers    
Economics at your fingertips  
 

Vulnerability of sustainable markets to fossil energy shocks

Yiying Li, Xiaohang Ren and Farhad Taghizadeh-Hesary

Resources Policy, 2023, vol. 85, issue PB

Abstract: From a market efficiency perspective, this study investigates the performance of sustainable markets under oil price shocks, including green bonds, clean energy, and carbon futures markets. This study assesses the one-way Granger causal impact caused by oil price shocks on the efficiency of sustainable markets, revealing that sustainable markets are vulnerable to oil price shocks initially. Our quantile-based regression results indicate that all three types of oil price shocks could have a long-term adverse effect on the effectiveness of these markets, confirming that sustainable markets are highly susceptible to oil price shocks. For each of these sustainable market efficiency, the primary role of oil price shocks varies. Additionally, the intensity and direction of the effects of these oil shocks can also be confused by the time dimension and quantile level. Our analysis shows that there is still a need for enhancement in the risk resistance of sustainable markets to fossil energy shocks. The findings could inform stakeholders’ investment strategies or policy arrangements in more detail and in more aspects.

Keywords: Market efficiency; Sustainable markets; Oil shocks; Long-memory method (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420723005901
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:jrpoli:v:85:y:2023:i:pb:s0301420723005901

DOI: 10.1016/j.resourpol.2023.103879

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-04-30
Handle: RePEc:eee:jrpoli:v:85:y:2023:i:pb:s0301420723005901