Climate Risk and the Nexus of Clean Energy and Technology Stocks

Elie Bouri, Tom Dudda, Lavinia Rognone, Thomas Walther

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

We examine the impact of climate risks on the nexus of clean energy and technology stocks using a time-varying correlation model. We find that physical and transition climate risks are positively associated with the long-term correlation between clean energy and technology stock indices, whereas the effect of transition risk is more robust to different sample periods and alternative stock indices. On the contrary, the short-term correlation tends to decrease after shocks to physical risk, since clean energy stocks react more strongly to physical risk shocks than technology stocks.
Original languageEnglish
JournalAnnals of Operations Research
Early online date27 Jul 2023
DOIs
Publication statusE-pub ahead of print - 27 Jul 2023

Keywords

  • Clean energy
  • Climate risk
  • Energy transition
  • Technology stocks

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