Nexus between crude oil prices, clean energy investments, technology companies and energy democracy

Abstract

In this study, we examine the nexus between crude oil prices, clean energy investments, technology companies, and energy democracy. Our dataset incorporates four variables which are S&P Global Clean Energy Index (SPClean), Brent crude oil futures (Brent), CBOE Volatility Index (VIX), and NASDAQ 100 Technology Sector (DXNT) daily prices between 2009 and 2021. The novelty of our study is that we included technology development and market fear as important factors and assess their impact on clean energy investments. DCC-GARCH models are utilized to analyze the spillover impact of market fear, oil prices, and technology company stock returns to clean energy investments. According to our findings when oil prices decrease, the volatility index usually responds by increasing which means that the market is afraid of oil price surges. Renewable investments also tend to decrease in that period following the oil price trend. Moreover, a positive relationship between technology stocks and renewable energy stock returns also exists.