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Exploring ripple effect of oil price, fintech, and financial stress on clean energy stocks: A global perspective

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  • Dong, Xueqin
  • Huang, Lilong

Abstract

This study examines the dynamic relationship between oil price volatility, fintech, financial stress, and clean energy stocks in the global market from June 2013 to December 2022. It explores the ripple effect and the impact of the fintech revolution on the performance of clean energy stocks. The analysis utilizes weekly data and employs the “Non-linear Autoregressive Distributed Lag (NARDL)” approach to capture potential non-linearities and asymmetries to understand complex dynamics and relationships comprehensively. The outcomes reveal significant associations between the examined variables. Positive fintech and negative financial stress positively positively influence clean energy stocks. These results suggest that increased fintech works as a catalyst for sustainable investments and restoring investor confidence in the financial services sector. Similarly, reducing financial stress favours the performance and attractiveness of clean energy stocks as investment options. Moreover, oil price volatility positively correlates with clean energy stocks, highlighting the interplay between energy markets and the transition towards cleaner and sustainable energy sources. The implications of these findings provide valuable insights for investors, policymakers, and stakeholders in the energy and financial sectors.

Suggested Citation

  • Dong, Xueqin & Huang, Lilong, 2024. "Exploring ripple effect of oil price, fintech, and financial stress on clean energy stocks: A global perspective," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s030142072301293x
    DOI: 10.1016/j.resourpol.2023.104582
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