What is Equity Market Performance

The aim of this study is to examine whether equity market development and ICT affect clean energy consumption in 18 high-income countries during the period 1990-2015. In the analysis, firstly, the stationarity properties of the variables are tested with the CADF and CIPS tests. In the second stage, cointegration between the variables in the model is investigated by Westerlund, Kao, and Pedroni methods. In the next step, the long-run elasticities of the variables are estimated using the PCSE and FGLS methods. The causality between the variables is also determined by applying the Dumitrescu-Hurlin panel causality method. According to findings, cointegration between clean energy consumption and equity market development, ICT, economic growth, and CO2 emissions variables, which integrated at I(1) level, is proven. The long-term findings showed that the equity market, ICT, and economic growth encourage clean energy consumption of 18 high-income countries, and CO2 emissions also prevent them. In addition, there is bidirectional causality between clean energy consumption and other variables.