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Asymmetric relationship between climate policy uncertainty and energy metals: Evidence from cross-quantilogram

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  • Karim, Sitara
  • Naeem, Muhammad Abubakr
  • Shafiullah, Muhammad
  • Lucey, Brian M.
  • Ashraf, Sania

Abstract

Climate policy uncertainty is a widely used measure of climate risk based on policy fronts. On the other hand, energy metals offer avenues for the use of clean, green, and sustainable energy to combat the environmental hazards and reduce carbon footprint. Following this, the current study aims to investigate the relationship between climate policy uncertainty and energy metals through a novel technique of cross-quantilogram. The study finds a pronounced relationship between climate policy uncertainty and energy metals in terms of reducing carbon emissions. We also report diversification benefits of energy metals given the larger lags. We deduced useful insights for practitioners, investors, and scholars.

Suggested Citation

  • Karim, Sitara & Naeem, Muhammad Abubakr & Shafiullah, Muhammad & Lucey, Brian M. & Ashraf, Sania, 2023. "Asymmetric relationship between climate policy uncertainty and energy metals: Evidence from cross-quantilogram," Finance Research Letters, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:finlet:v:54:y:2023:i:c:s1544612323001022
    DOI: 10.1016/j.frl.2023.103728
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    References listed on IDEAS

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    More about this item

    Keywords

    Carbon footprint; Climate policy uncertainty; Cross-quantilogram; Energy metals;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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