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Shades between Black and Green Investment: Balance or Imbalance?

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  • Vítor Manuel de Sousa Gabriel

    (Center for Advanced Studies in Management and Economics (CEFAGE), Polytechnic Institute of Guarda, 6300-559 Guarda, Portugal)

  • María Mar Miralles-Quirós

    (Department of Financial Economics, University of Extremadura, 06006 Badajoz, Spain)

  • José Luis Miralles-Quirós

    (Department of Financial Economics, University of Extremadura, 06006 Badajoz, Spain)

Abstract

This paper analyses the links established between environmental indices and the oil price adopting a double perspective, long-term and short-term relationships. For that purpose, we employ the Bounds Test and bivariate conditional heteroscedasticity models. In the long run, the pattern of behaviour of environmental indices clearly differed from that of the oil prices, and it was not possible to identify cointegrating vectors. In the short-term, it was possible to conclude that, in contemporaneous terms, the variables studied tended to follow similar paths. When the lag of the oil price variable was considered, the impacts produced on the stock market sectors were partially of a negative nature, which allows us to suppose that this variable plays the role of a risk factor for environmental investment.

Suggested Citation

  • Vítor Manuel de Sousa Gabriel & María Mar Miralles-Quirós & José Luis Miralles-Quirós, 2021. "Shades between Black and Green Investment: Balance or Imbalance?," Sustainability, MDPI, vol. 13(9), pages 1-14, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:9:p:5024-:d:546607
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    Cited by:

    1. María Mar Miralles-Quirós & José Luis Miralles-Quirós, 2021. "Sustainable Finance and the 2030 Agenda: Investing to Transform the World," Sustainability, MDPI, vol. 13(19), pages 1-6, September.

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