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Examining connections between the fourth industrial revolution and energy markets

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  • Elsayed, Ahmed H.
  • Billah, Mabruk
  • Goodell, John W.
  • Hadhri, Sinda

Abstract

We investigate the relationship between assets related to the fourth industrial revolution and alternatively dirty and clean energy markets. We examine portfolio diversification benefits and risk reduction gains based on three portfolio construction techniques. Results of static connectedness analysis indicate weak integration between the fourth industrial revolution assets and both clean and dirty energy markets with spillovers being mainly in the short term. Time-varying connectedness analysis shows that the connectedness is time-varying and responsive to external shocks Further, portfolio analysis shows that fourth industrial revolution assets are important for fixed-income portfolios that also comprise stocks and energy assets.

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  • Elsayed, Ahmed H. & Billah, Mabruk & Goodell, John W. & Hadhri, Sinda, 2024. "Examining connections between the fourth industrial revolution and energy markets," Energy Economics, Elsevier, vol. 133(C).
    • Handle: RePEc:eee:eneeco:v:133:y:2024:i:c:s0140988324001841
    DOI: 10.1016/j.eneco.2024.107476
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    More about this item

    Keywords

    Fourth industrial revolution; Clean energy; Dirty energy; Connectedness; Portfolio management; Spillovers;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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