Water and Emerging Energy Markets Nexus: Fresh Evidence from Advanced Causality and Correlation Approaches

Nader Trabelsi (), Aviral Tiwari and Buhari Doğan ()
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Nader Trabelsi: Department of Finance, College of Business, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11432, Saudi Arabia

Energies, 2024, vol. 17, issue 13, 1-22

Abstract: This work provides an in-depth investigation of the dynamic interaction patterns between water stocks and renewable energy markets through the application of continuous wavelet analysis, dynamic correlation analysis, and time-varying Granger causality analysis. In addition, this study utilizes daily pricing indices, namely the S&P Global Water Index, Solactive Global Wind Energy Index, and Solactive Global Solar Energy Index, spanning from 18 May 2011 to 23 June 2022. The results show significant correlation patterns between the indices, ranging from moderate to high. Notably, robust correlations have been detected starting from 2015. The research also discovered a varied and inconsistent relationship between frequency and causation throughout different time periods. Moreover, the results reveal an asymmetry in the causal effects and a symmetry correlation at tail quantile ranges. Policymakers and market participants must consider these insights to make wise financial and strategic decisions.

Keywords: renewable energy; water; multi-scales; quantiles; prediction (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
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