Time-varying Relationship between Fossil Fuel-Free Energy Indices and Economic Uncertainty: Global Evidence from Wavelet Coherence Approach


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Authors

  • Farah Durani University of Business and Technology, Jeddah, Saudi Arabia.

DOI:

https://doi.org/10.32479/ijeep.15257

Keywords:

Renewable energy investment, Energy markets, Twitter-based economic uncertainty, Fossil fuel-free energy equity, Russia-Ukraine war, COVID-19

Abstract

Considering the abysmal environmental impacts of anthropogenic activities, the entire world has been striving to shift toward a green economy. Also, the transition to a greener economy entails green financing, which escalates the pace and performance of environment-friendly economic activities. However, uncertain economic conditions might be a hindrance to green financing. Based on this, I investigate the co-movement of fossil-fuel-free energy equity indices returns and Twitter-based economic uncertainty using a wavelet coherence approach. The findings document that global, the US, and Japanese fossil-fuel-free indices show strong and positive co-movement with Twitter economic uncertainty for short- and medium-term investment horizons. However, a weak positive co-movement is observed during the Russia-Ukraine war. Based on these interesting findings, I suggest many policy implications.

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Published

2024-01-15

How to Cite

Durani, F. (2024). Time-varying Relationship between Fossil Fuel-Free Energy Indices and Economic Uncertainty: Global Evidence from Wavelet Coherence Approach. International Journal of Energy Economics and Policy, 14(1), 663–672. https://doi.org/10.32479/ijeep.15257

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Articles