Are China’s new energy stock prices driven by new energy policies?

Juan Reboredo and Xiaoqian Wen

Renewable and Sustainable Energy Reviews, 2015, vol. 45, issue C, 624-636

Abstract: This paper studies the impact of China’s new energy policies on expected changes and volatility in new energy stock prices. Considering different kinds of policies (energy legislation, binding targets for new energies, economic incentives and technological research and development) and several new energy indexes (China’s new energy sector and the solar, wind, nuclear and lithium battery subsectors), we used a regression model with a GARCH specification and dummy variables to differentiate policy pre- and post-announcement effects on expected returns and volatility. Our evidence indicates that pre- and post-announcement energy legislation policies dampened price volatility in all subsector indexes and that economic incentives had a positive policy announcement effect on all subsector index prices. Other new energy policies had no significant impact on either the mean or the volatility of the new energy assets. The potential implications for policy makers and investors are discussed.

Keywords: New energy policy; New energy stock prices; GARCH (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364032115001136
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:rensus:v:45:y:2015:i:c:p:624-636

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

DOI: 10.1016/j.rser.2015.02.025

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Catherine Liu ().