The paper examines market co‐movement between pairs of financial assets in the time‐frequency domain. Recent finance literature confirms the integration of cryptocurrencies and financial assets, which may bring more investments with the possibility of surplus liquidity in the cryptocurrency segment, leading to financial instability. The novelty of this paper is examining the integration of cryptocurrencies and the indices of equity, sustainability, renewable energy, and crude oil for the daily observations from 2015 to 2021 by using the wavelet coherency method. The empirical results signify no integration in the short‐term scales and grow stronger in the medium‐term scales, especially during the COVID‐19 period, and further exhibit weaker heterogeneous associations in the long‐term scales. However, the sustainability, clean energy indices follow similar dynamics of the equity market and crypto pairs. In contrast, the global crude oil index showcases the minor integration with cryptocurrencies compared with other traditional asset classes. Hence, the cryptocurrency market fails to confirm the safe haven features, especially during the COVID‐19 periods (Medium‐term), which facilitate the domestic and international investors expecting to hedge their price risk in equity markets using cryptocurrencies may have to look for short‐term. The lead–lag heterogeneous effects of the asset‐pairs may pave arbitrage opportunities for investors.
Global climate change has already created noticeable ill-effects on the environmental system and attaining further economic growth without compromising environmental quality is a difficult challenge for every country on this planet. Inspired by United Nation's Sustainable Development Goals (SDGs) core agenda, we investigated the singular, combined, and coupling influence of income growth, foreign direct investment inflows, renewable energy, and regulatory quality (RQ) on climate change under the scale, technique, and composition effects hypothesis. This analysis enables the creation of appropriate policy interventions to mitigate the severity of climate change in the future for the diverse countries in the Asia-Pacific region. The study adopted the dynamic heterogenous estimation methodology responsible for accounting for the heterogeneity. We estimated 14 empirical models for the panel data from 1996 to 2015 of Asia-Pacific countries. Empirical results validated the scale, technique, and composition effects and include that the progress in the share of renewable energy consumption in emerging countries by 1% reduces the greenhouse gas emissions by 0.24% (99% Confidence interval [C.I]), whereas 1% increase in the interactive effect of renewable energy and RQ deepens the emissions by 0.35% (99% C.I). The income level and RQ aggravate greenhouse gas emissions; whereas renewable energy diminishes the overall emissions level in emerging and advanced economies. This article's empirical outcomes would facilitate climate change mitigation-related policy interventions of diverse economies in the Asia-Pacific region to attain Sustainable Development Goals (SDGs-7 and 13).
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