Riding the Green Wave: How Clean Energy Is Reshaping China’s Stock Market

Assad Ullah (), Chenghui Ye (), Mesut Dogan (), Fiza Qureshi () and Muhammad Abdul Kamal ()
Additional contact information
Assad Ullah: Hainan Normal University
Chenghui Ye: Hainan Normal University
Mesut Dogan: Vocational School of Bozuyuk, Bilecik Seyh Edebali University
Fiza Qureshi: RMIT University
Muhammad Abdul Kamal: Abdul Wali Khan University

Journal of the Knowledge Economy, 2025, vol. 16, issue 1, No 135, 3892-3920

Abstract: Abstract The clean energy industry has recently garnered marked attention, as it does not only mitigate greenhouse gas (GHG) emissions, but it also serves as a novel investment avenue, which may propel the size of the stock market. With this backdrop, this study aims to assess whether clean energy augments the size of the stock markets in China, utilizing the wavelet coherence (WCA) and the Breitung-Candelon spectral causality approaches. The empirical analysis shows that clean energy has significant positive effect on the development of both the Shanghai and the Shenzhen stock markets across different times and frequencies. The spectral causality approach further affirms the lead-lag relationship between clean energy and China’s stock market development across different frequencies. Based on these findings, we suggest that the Chinese government should pave the way for clean energy projects, which will bolster both domestic and foreign investment, eventually, boosting China’s stock growth. The study offers actionable insights for environmentally conscious and energy investors. It highlights the significance of clean energy in China’s stock market for achieving sustainable development in China.

Keywords: Clean energy; Stock market growth; Wavelet coherence; Spectral causality; China (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s13132-024-02064-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-02064-y

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13132

DOI: 10.1007/s13132-024-02064-y

Access Statistics for this article

Journal of the Knowledge Economy is currently edited by Elias G. Carayannis

More articles in Journal of the Knowledge Economy from Springer, Portland International Center for Management of Engineering and Technology (PICMET)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().