Climate Risk and the Nexus of Clean Energy and Technology Stocks

• DOI: 10.2139/ssrn.4300269
• Publication Date: 2022-12-23T14:24:48Z
• Authors: Elie Bouri; Tom L. Dudda; Lavinia Rognone; Thomas Walther
• Keywords: Clean technology; Clean energy

The transition from fossil fuels toward cleaner energy necessitates technological innovation, suggesting not only an association between clean and technology stocks but also a potential impact of climate risk on this association. In paper, we examine the nexus using time-varying correlation model. We find physical to be positively associated with long-term stocks, whereas effect is more persistent. contrast, short-term tends decrease following shocks risk, as react stronger than stocks. Our analysis provides new insights into heterogeneous role that can particularly relevant for investors academics interested in financial implications change.