by Saqib Farid|Lecturer - Department of Banking and Finance | Dr Hasan Murad School of Management
A groundbreaking study published in the Journal of Economic Behavior and Organization delves into the intricate relationships among cryptocurrencies, clean energy stocks, and energy metals. Researchers Saqib Farid, faculty member at HSM, and collaborators explore how these markets influence each other and what it means for the future of investing and sustainability.
The findings reveal that clean energy stocks, such as the S&P Global Clean Energy Index (SPGCE) and Wilderhill Clean Energy Index (WILCE), play a central role in in driving market changes. These assets, along with Ethereum (ETH), emerge as key influencers, while others, like Bitcoin (BTC) and various energy metals, respond to shifts in the market.
The study highlights how these relationships grow stronger during global crises, like the COVID-19 pandemic, showing how interconnected these markets have become in uncertain times. This has big implications for investors and policymakers.
The message is clear: investing in clean energy isn’t just about sustainability—it’s also about staying ahead in a rapidly evolving financial world. Policymakers are urged to create supportive frameworks that encourage green investments while addressing the environmental challenges posed by cryptocurrency mining.
For investors, this research provides valuable guidance on navigating market volatility and making smarter, greener choices. The future of finance and sustainability is intertwined, and this study sheds light on how we can prepare for what’s next.
For a deeper dive, check out the full study in Journal of Economic Behavior & Organization