Nexus between crude oil prices, clean energy investments, technology companies and energy democracy

Caner Özdurak; Caner Özdurak

doi:10.3934/GF.2021017

Green Finance

2021, Volume 3, Issue 3: 337-350. doi: 10.3934/GF.2021017

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Research article

Nexus between crude oil prices, clean energy investments, technology companies and energy democracy

Caner Özdurak ^,

Financial Economics Department, Yeditepe University, İstanbul, Turkey

Received: 10 June 2021 Accepted: 27 August 2021 Published: 01 September 2021
JEL Codes: G1, G10, C32, Q4

In this study, we examine the nexus between crude oil prices, clean energy investments, technology companies, and energy democracy. Our dataset incorporates four variables which are S & P Global Clean Energy Index (SPClean), Brent crude oil futures (Brent), CBOE Volatility Index (VIX), and NASDAQ 100 Technology Sector (DXNT) daily prices between 2009 and 2021. The novelty of our study is that we included technology development and market fear as important factors and assess their impact on clean energy investments. DCC-GARCH models are utilized to analyze the spillover impact of market fear, oil prices, and technology company stock returns to clean energy investments. According to our findings when oil prices decrease, the volatility index usually responds by increasing which means that the market is afraid of oil price surges. Renewable investments also tend to decrease in that period following the oil price trend. Moreover, a positive relationship between technology stocks and renewable energy stock returns also exists.
- dynamic spillover,
- renewable energy companies,
- fossil-fuel price,
- energy democracy
Citation: Caner Özdurak. Nexus between crude oil prices, clean energy investments, technology companies and energy democracy[J]. Green Finance, 2021, 3(3): 337-350. doi: 10.3934/GF.2021017

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Abstract

In this study, we examine the nexus between crude oil prices, clean energy investments, technology companies, and energy democracy. Our dataset incorporates four variables which are S & P Global Clean Energy Index (SPClean), Brent crude oil futures (Brent), CBOE Volatility Index (VIX), and NASDAQ 100 Technology Sector (DXNT) daily prices between 2009 and 2021. The novelty of our study is that we included technology development and market fear as important factors and assess their impact on clean energy investments. DCC-GARCH models are utilized to analyze the spillover impact of market fear, oil prices, and technology company stock returns to clean energy investments. According to our findings when oil prices decrease, the volatility index usually responds by increasing which means that the market is afraid of oil price surges. Renewable investments also tend to decrease in that period following the oil price trend. Moreover, a positive relationship between technology stocks and renewable energy stock returns also exists.

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