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.
|Number of pages
|Annals of Operations Research
|Published - 27 Jul 2023
DFG Classification of Subject Areas according to Review Boards
Subject groups, research areas, subject areas according to Destatis
- Clean energy, Climate risk, Energy transition, Technology stocks