The spillover effects between renewable energy tokens and energy assets

Yajie Yang, Longfeng Zhao, Lin Chen, Chao Wang and Gang-Jin Wang

Research in International Business and Finance, 2025, vol. 74, issue C

Abstract: This study employs a quantile-based approach to investigate the interconnectedness among renewable energy tokens, fossil fuels, and conventional renewable energy markets. The objective is to explore the dependence nexus under various market conditions, including the COVID-19 pandemic, cryptocurrency bubble, and Russia-Ukraine conflict. Findings reveal (i) spillovers among renewable energy tokens, fossil fuels, and conventional renewable energy markets are time-varying, intensifying during turbulent periods; (ii) the renewable energy tokens are weakly connected with the energy markets at the mean and median quantiles; (iii) at extreme quantiles, conventional renewable energy markets dominate the fossil fuels and renewable energy token markets, with spillovers from the latter to the fossil fuels. This suggests fossil fuel markets gradually lose dominance as clean energy markets advance. This research discloses the real landscape of financial spillover effects of energy markets, providing valuable insights for investors and policymakers in managing risk exposure and avoiding unexpected losses.

Keywords: Renewable energy tokens; Fossil fuel markets; Renewable energy stock markets; Quantile spillover (search for similar items in EconPapers)
JEL-codes: C40 G10 G12 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:74:y:2025:i:c:s0275531924004653

DOI: 10.1016/j.ribaf.2024.102672

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