This study contributes to the literature by examining the links between clean energy stocks and commodities such as gold, silver, and platinum. The purpose was to examine the clean energy stock indices, namely Clean Energy Fuels, Nasdaq Clean Edge Green Energy, S&P Global Clean Energy, WilderHill Clean Energy, and the precious metals Gold, Handy & Harman; Silver, Handy & Harman; and London Platinum over the period from January 1, 2021 to November 23, 2023. The results revealed significant changes in hedging asset characteristics related to the sustainable energy and precious metals indices. The movements that impact price formation increased from 11 to 18 in the conflict sub-period, indicating greater complexity and interdependence between the assets analyzed. These results have important implications in the context of enormous growth in investments in clean energy stocks and the repeated occurrence of periods of uncertainty.
Top1. Introduction
Despite the remarkable growth in the clean energy sector, conventional energy of polluting origin continues to be the main global energy source. In addition, clean energy sources are often considered alternatives to traditional forms of energy production, indicating an interdependence between the sustainable development of the clean energy sector and conventional energy markets. Decarbonization is gaining prominence globally, especially after the Paris climate agreement 2015 and the COP26 conference. Regulators, companies, financial institutions, and investors have sought to gradually replace polluting sources with clean energy options. In fact, many experts strongly argue that investments in clean energy are crucial to achieving the goals set at COP26 (Ren and Lucey, 2022, 2021).
Over the last two centuries, using polluting energy sources has boosted economic development and contributed to environmental problems, creating a growing concern over sustainability. The global demand for reduced carbon emissions and the transition to clean energies, such as solar, wind, hydroelectric, and geothermal, have resulted in significant investments in the sector. The emergence of clean energy has become a crucial driver of economic growth in several countries. The WilderHill Clean Energy Index was established in 2004 to monitor progress in this sector. It tracks the performance of publicly traded companies involved in clean energy technologies such as solar panels, wind turbines, and biofuels. The index is widely recognized as the leading benchmark for the clean energy sector and has become a key tool for investors looking to invest in this fast-growing sector (Dias, Alexandre, et al., 2023; Dias, Horta, et al., 2023; Dias and Galvao, 2023; Dias et al., 2023).
In recent decades, international markets have experienced crises that have caused very significant structural breakdowns. In the face of these moments of market stress, investors often turn to assets that offer stability and preserve value. These assets include commodities such as precious metals, namely gold, Silver, and Platinum, which are becoming particularly important. Throughout its history, gold has consolidated its position as a safe haven during financial uncertainty. Its tangible nature and confidence in its ability to maintain value make it a popular safe haven for investors when confidence in traditional markets is questioned. Silver, often seen as a more affordable alternative to gold, plays a crucial role in investment portfolios during crises. Its dual function, both as a safe-haven asset and in industrial applications, contributes to its demand, even in complex economic scenarios (Chambino et al., 2022; Dias et al., 2023; Santana et al., 2023; Dias et al., 2023)