Economic extremes steering renewable energy trajectories: A time-frequency dissection of global shocks

Lu Wang, Hang Ruan, Xiaodong Lai and Dongxin Li

Technological Forecasting and Social Change, 2024, vol. 202, issue C

Abstract: The impact between time series may differ at different frequencies and time periods, and certain external events may cause sharp fluctuations in new financial markets. It is essential to conduct additional analyses on the extreme relationships in the time-frequency domain. However, extreme causal relationships and time-varying characteristics under various shocks usually cannot be detected simultaneously. Therefore, we reveal the extreme impacts and dynamic changes in global economic conditions on renewable energy by extending a fresh extreme wavelet-based method. Our results reveal significant extreme asymmetric impacts of economic conditions on renewable energy. Moreover, this effect was reinforced by extreme events such as the outbreak of the global financial crisis and the Russia–Ukraine conflict. This paper provides a deep analysis of economic conditions and renewable energy from a time-frequency domain perspective, which can aid investors and policy-makers in making relevant decisions under extreme conditions.

Keywords: Wavelet analysis; Extreme shocks; Time-varying causality; Global economic conditions; Renewable energy stock index (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:202:y:2024:i:c:s0040162524001136

DOI: 10.1016/j.techfore.2024.123317

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