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Unearthing the hedge and safe-haven potential of green investment funds for energy commodities

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  • Özkan, Oktay
  • Meo, Muhammad Saeed
  • Younus, Mehak

Abstract

In an era when the global economy prioritizes sustainability, the significance of green investments resonates more strongly than ever, impacting industries and regions worldwide. This research introduces a novel method, the Rolling Window Wavelet Quantile Correlation (RWWQC) technique, to investigate the safe haven, hedging, and diversification properties of green investments for energy commodities. Our findings reveal that green investments serve as safe havens, hedges, and diversifiers for energy commodities. Furthermore, we highlight that the strength of these roles varies with the investment holding period. These findings offer valuable insights for both individual and institutional investors seeking effective portfolio diversification strategies and carry significant policy implications in the pursuit of sustainable investments.

Suggested Citation

  • Özkan, Oktay & Meo, Muhammad Saeed & Younus, Mehak, 2024. "Unearthing the hedge and safe-haven potential of green investment funds for energy commodities," Energy Economics, Elsevier, vol. 138(C).
    • Handle: RePEc:eee:eneeco:v:138:y:2024:i:c:s014098832400522x
    DOI: 10.1016/j.eneco.2024.107814
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    More about this item

    Keywords

    RWWQC; Energy commodities; Green investments; Safe-haven; Hedge;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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