The Clean Energy-Ecology Interrelatedness: Evidence from the S&P Dow Jones Indices

Article Sidebar

Article Cover
pdf
Published: Dec 1, 2024
DOI: https://doi.org/10.56476/jed.v49i2.24
Keywords:
clean energy, ecology, stock price indices, Granger causaility, JEL Classification C22: Time-series models and analysis, JEL Classification C5, JEL Classification Q4, JEL Classification Q5, Econometric modeling, Energy, including clean and sustainable energy, Environmental economics

Main Article Content

Vighneswara Swamy
Department of Economics, ICFAI School of Social Sciences, ICFAI Foundation for Higher Education (IFHE), Hyderabad, India
https://orcid.org/0000-0001-7287-4637
Aviral Kumar Tiwari
Indian Institute of Management Bodh Gaya (IIM Bodh Gaya), India and CEENRG Research Fellow, Department of Land Economy, University of Cambridge, United Kingdom, Research Fellows at Laboratoire d'Economie d'Orléans (LEO - CNRS), University of Orleans, France and University of Economics Ho Chi Minh City, Vietnam
https://orcid.org/0000-0002-1822-9263

Abstract

In the context where “sustainable energy” promotes “environmental sustainability,” and as private investment in clean energy gains traction as a vital measure for climate change mitigation, evaluating its impact on ecology-focused firms is essential. This study examines the “clean energy-ecology nexus,” investigating whether the rapid growth of clean energy technologies driving sustainable energy transitions positively influences ecology through effective water and waste management practices and optimized industrial systems. Understanding this interrelationship within the frequency domain allows for informed conclusions. We apply a recently developed frequency-domain Granger-causality inferential framework to analyze the clean energy-ecology nexus in both unconditional and conditional contexts. The results suggest that clean energy technologies benefit ecology, reinforcing the connection between clean energy and ecological health. 

Article Details

How to Cite
Swamy, Vighneswara, and Aviral Kumar Tiwari. 2024. “The Clean Energy-Ecology Interrelatedness: Evidence from the S&P Dow Jones Indices”. Journal of Energy and Development 49 (2):323–338. https://doi.org/10.56476/jed.v49i2.24.
Issue
Vol. 49 No. 2 (2024): Journal of Energy and Development
Section
Articles
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Author Biographies

Vighneswara Swamy, Department of Economics, ICFAI School of Social Sciences, ICFAI Foundation for Higher Education (IFHE), Hyderabad, India

Vighneswara Swamy is a Professor of Economics with over two decades of experience in research, teaching, and consultancy. He is the Dean of Research at the ICFAI Foundation for Higher Education, a deemed-to-be university in Hyderabad, India. His contributions to the field of economics have garnered him prestigious awards, including the NJ Yasaswy – Apollo Hospitals Best Teacher Award in 2018-19 and the IBSAF Best Teacher Award in 2017. He received the IIBF Macro Research Award in 2012 and 2016 and the SANEI Regional Research Award for South Asia in 2013 and 2015. Dr. Swamy was a Sir Ratan Tata Trust Senior Fellow at the Institute of Economic Growth and also served as a UGC Post-Doctoral Fellow. His research spans a spectrum of critical areas: financial inclusion, macroeconomic policy, banking and finance, international economics, resource economics, and poverty reduction. Dr. Swamy has published in leading international journals like The World Economy, World Development, International Review of Economics and Finance, and International Journal of Economics and Finance. Notably, he has spearheaded pivotal research projects, including investigations into the effectiveness of monetary policy transmission in India and the political economy of sovereign debt.

Vighneswara SWAMY | Professor (Full) | PhD, PDF | Economics & Finance | Research profile

‪Vighneswara Swamy‬ - ‪Google Scholar‬

Vighneswara-Swamy.pdf

Aviral Kumar Tiwari , Indian Institute of Management Bodh Gaya (IIM Bodh Gaya), India and CEENRG Research Fellow, Department of Land Economy, University of Cambridge, United Kingdom, Research Fellows at Laboratoire d'Economie d'Orléans (LEO - CNRS), University of Orleans, France and University of Economics Ho Chi Minh City, Vietnam

Aviral Kumar Tiwari is Associate Professor, Chairperson Research & Publications and a Member of Board of Governance, at the Indian Institute of Management Bodh Gaya (IIM Bodh Gaya), India and CEENRG Research Fellow, Department of Land Economy, University of Cambridge, United Kingdom, Research Fellows at Laboratoire d'Economie d'Orléans (LEO - CNRS), University of Orleans, France and University of Economics Ho Chi Minh City, Vietnam. Prior to joining IIMBG, he worked as Associate Professor at Rajagiri Business School (RBS), India and Montpellier Business School (MBS), Montpellier, France from where he received his post-doctorate as well. He has published widely in peer-reviewed international journals and contributed more than 100 ABDC-A & A* research papers so far. He is the only economist included from India in the career ranking of the world’s top 2% scientists list for 2021, 2022, 2023, and 2024 published by Stanford University and Elsevier Study. He is ranked at the first position in India as a researcher by IDEAS. He is one of the Highly Cited Researchers 2020, 2022, and 2023 by Clarivate™ of Web of Science™. He is one of the recipients of the M J Manohar Rao Award (for young econometrician) for 2014 from The Indian Econometric Society. He is Life Member, the Indian Economic Association, India, and a member at several other international associations such as International Association for Energy Economics (USA), Association for Comparative Economic Studies (USA), and Western Economic Association International (USA). He holds different editorial positions in more than 10 journals of international repute (ABDC, Scopus, and ABS indexed journals). 

Aviral Kumar Tiwari | IDEAS/RePEc

‪Aviral Kumar Tiwari‬ - ‪Google Scholar‬

Aviral Kumar Tiwari – Indian Institute of Management Bodh Gaya

 

References

Berzuini, C., P. Dawid, and L. Bernardinelli. Causality: Statistical Perspectives and Applications. John Wiley & Sons, Ltd., 2012. DOI:10.1002/9781119945710. DOI: https://doi.org/10.1002/9781119945710

Breitung, J., and B. Candelon. “Testing for Short- and Long-Run Causality: A Frequency-Domain Approach.” Journal of Econometrics, vol. 132, no. 2, 2006, pp. 363–378. DOI: 10.1016/j.jeconom.2005.02.004. DOI: https://doi.org/10.1016/j.jeconom.2005.02.004

Breitung, J., and S. Schreiber. “Assessing Causality and Delay Within a Frequency Band.” Econometrics and Statistics, vol. 6, 2018, pp. 57–73. DOI: 10.1016/j.ecosta.2017.04.005. DOI: https://doi.org/10.1016/j.ecosta.2017.04.005

Ding, M., Y. Chen, and S. L. Bressler. “Granger Causality: Basic Theory and Application to Neuroscience.” Handbook of Time Series Analysis: Recent Theoretical Developments and Applications, edited by B. Schelter, M. Winterhalder, and J. Timmer, Wiley-VCH Verlag GmbH & Co. KGaA, 2006, pp. 437–460. DOI:10.48550/arXiv.q-bio/0608035. DOI: https://doi.org/10.1002/9783527609970.ch17

Farne, Matteo, and Angela Montanari. “A Bootstrap Test to Detect Prominent Granger-Causalities Across Frequencies.” arXiv:1803.00374v2 [q-fin.ST], 2018. DOI: 10.48550/arXiv.1803.00374.

Ferrer, Roman, Syed-Jawad-Hussain Shahzad, Raquel Lopez, and Francisco Jarerio. “Time and Frequency Dynamics of Connectedness Between Renewable Energy Stocks and Crude Oil Prices.” Energy Economics, vol. 76, no. 1, 2018, pp. 1–20. DOI: 10.1016/j.eneco.2018.09.022. DOI: https://doi.org/10.1016/j.eneco.2018.09.022

Geweke, J. “Measurement of Linear Dependence and Feedback Between Multiple Time Series.” Journal of the American Statistical Association, vol. 77, no. 378, 1982, pp. 304–324. DOI: 10.1080/01621459.1982.10477803. DOI: https://doi.org/10.2307/2287238

Granger, C. “Investigating Causal Relations by Econometric Models and Cross-Spectral Methods.” Econometrica, vol. 37, no. 3, 1969, pp. 424–438. DOI: 10.1017/CBO9780511753978.002. DOI: https://doi.org/10.2307/1912791

Hastik, Richard, Stefano Basso, Clemens Geitner, Christin Haida, Ales Poljanec, Alessia Portaccio, Borut Vrscaaj, and Chris Walzer. “Renewable Energies and Ecosystem Service Impacts.” Renewable and Sustainable Energy Reviews, vol. 48, no. 1, 2015, pp. 608–623. DOI: 10.1016/j.rser.2015.04.004. DOI: https://doi.org/10.1016/j.rser.2015.04.004

Nasreen, Samia, Aviral Kumar Tiwari, Juncal Cunado Eizaguirre, and Mark E. Wohar. “Dynamic Connectedness Between Oil Prices and Stock Returns of Clean Energy and Technology Companies.” Journal of Cleaner Production, vol. 260, 2020, 121015. DOI: 10.1016/j.jclepro.2020.121015. DOI: https://doi.org/10.1016/j.jclepro.2020.121015

Nishiyama. “Exports’ Contribution to Economic Growth: Empirical Evidence for California, Massachusetts, and Texas, Using Employment Data.” Journal of Regional Science, vol. 37, 1997, pp. 99–125. DOI: 10.1111/0022-4146.00045. DOI: https://doi.org/10.1111/0022-4146.00045

Pierce, David A. “R² Measures for Time Series.” Journal of the American Statistical Association, vol. 74, no. 1, 1979, pp. 901–910. DOI: https://doi.org/10.1080/01621459.1979.10481052

Politis, D. N., and J. P. Romano. “The Stationary Bootstrap.” Journal of the American Statistical Association, vol. 89, no. 1, 1994, pp. 1303–1313. DOI: 10.1080/01621459.1994.10476870. DOI: https://doi.org/10.1080/01621459.1994.10476870

Symitsi, Efthymia, and Konstantinos J. Chalvatzis. “Return, Volatility, and Shock Spillovers of Bitcoin with Energy and Technology Companies.” Economics Letters, vol. 170, no. 1, 2018, pp. 127–130. DOI: 10.1016/j.econlet.2018.06.012. DOI: https://doi.org/10.1016/j.econlet.2018.06.012

Tiwari, Aviral Kumar. “The Frequency-Domain Causality Analysis Between Energy Consumption and Income in the United States.” Economia Aplicada, vol. 18, no. 1, 2014, pp. 51–67. DOI: https://doi.org/10.1590/1413-8050/ea307

Tiwari, Aviral Kumar, Richard O. Olayeni, Sodik Adejonwo Olofin, and Tsangyao Chang. “The Indian Inflation–Growth Relationship Revisited: Robust Evidence from Time-Frequency Analysis.” Applied Economics, 2019. DOI: 10.1080/00036846.2019.1616065. DOI: https://doi.org/10.1080/00036846.2019.1616065

Zivot, E., and D. Andrews. “Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis.” Journal of Business and Economic Statistics, vol. 10, no. 1, 1992, pp. 251–270. DOI: 10.1080/07350015.1992.10509904. DOI: https://doi.org/10.1080/07350015.1992.10509904