Does renewable energy index respond to the pandemic uncertainty?
| Autor: | Wael Hemrit, Noureddine Benlagha |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Commodities
Index (economics) 060102 archaeology Scope (project management) Renewable Energy Sustainability and the Environment business.industry Natural resource economics World pandemic uncertainty index 020209 energy Asset allocation 06 humanities and the arts 02 engineering and technology Quantile regression Renewable energy Renewable energy index Pandemic 0202 electrical engineering electronic engineering information engineering Economics 0601 history and archaeology Quantile Empirical evidence business Economic policy uncertainty |
| Popis: | Unlike very recent studies examining the most widely traded commodities (such as; oil and gold) under an overwhelming time pressure and amid high pandemic uncertainty, the effects of world pandemic and economic policy uncertainties along with price movements in common traditional asset classes on the renewable energy index are investigated. The empirical evidence is based on daily data covering the period from January 3, 2005 to June 30, 2020. The results from quantile regression show significant positive effects of the pandemic uncertainty on renewable energy index. In contrast, the empirical findings reveal negative effect of the economic policy uncertainty on the renewable energy index, particularly, in lower quantiles. Accordingly, the results indicate that the effect of the economic policy uncertainty is reversed as the quantiles increase. The study's practical applications are unique and have policy implications; for instance, suitable policies could convert the threats of pandemic uncertainty to great opportunities for renewable energy markets and ultimately, investors not only explore the scope for hedging the oil price risk, but they can reap further portfolio diversification benefits by investing in renewable energy stocks. 2021 Elsevier Ltd Scopus |
| Databáze: | OpenAIRE |
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