Why are renewable energy stocks going down?
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53 Citations | However, when the share of renewable energy increases too quickly, financial stability may be at stake as the burden of financing investments in renewable energy offsets the improved profitability of existing power stations. |
150 Citations | First, it appears that technology stocks play vital role in the return and volatility spillovers of renewable energy stocks and crude oil prices. |
Thus to manage the market risk and achieve better investment returns of renewable energy stocks in China is of great value for policy makers and investors. | |
21 Citations | These observations are interesting given the recent emergence of new investors in the renewable energy sector. |
45 Citations | Result of this paper indicated that; First Solar Inc., General Cable Corporation and Trina Solar are more important within the network, moreover; we found that; these stocks play a significant role in renewable energy development in terms of market capitals. |
116 Citations | The regulation has significantly positive impacts on renewable energy. |
Related Questions
Geopolitical risks to renewable energy stock returns?6 answersGeopolitical risks significantly influence renewable energy stock returns, as evidenced by a body of research spanning various aspects of the energy sector and financial markets. Floros et al. have demonstrated that geopolitical tensions can have a measurable impact on green investments, indicating that geopolitical risk is a critical factor for renewable energy financing and development. This is corroborated by Agoraki et al., who found that geopolitical risks negatively affect stock returns, with a substantial decrease in returns following a one-unit standard deviation increase in geopolitical risks.
Renewable energy markets, including sub-sectors, exhibit varying responses to geopolitical risk (GPR) and economic uncertainty indices (EUI), suggesting that renewable energies can serve as a hedge against these risks under certain conditions. However, the impact of geopolitical events on stock returns can differ based on the specific context, such as the North Korean regime's influence on inter-Korean economic cooperation-related firms. The transition to renewable energy, driven by competition for resources essential for renewable technologies, introduces new geo-economic dynamics that could destabilize economies dependent on fossil fuel exports.
The Russo-Ukrainian Conflict highlighted the positive effect of rising oil prices on renewable energy stock returns in China, suggesting that geopolitical conflicts affecting oil prices could indirectly benefit the renewable sector. The COVID-19 pandemic's impact on clean energy stocks further illustrates how global crises, including geopolitical tensions, can influence renewable energy markets. The war in Ukraine in 2022 demonstrated renewable energy markets' resilience, with positive and significant cumulative abnormalities observed in the aftermath.
Literature reviews on the geopolitics of renewable energy have identified both potential security benefits and risks associated with the transition to renewables, including concerns over critical materials and cybersecurity. However, Overland argues against overstating these risks, suggesting that the geopolitical implications of renewable energy's rise may be more nuanced and less dire than some forecasts imply. Collectively, these studies underscore the complex and multifaceted relationship between geopolitical risks and renewable energy stock returns, highlighting the need for nuanced understanding and strategic planning in the face of geopolitical uncertainties.
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