The dynamics of returns on renewable energy companies: A state-space approach

Inchauspe, Julian; Ripple, Ronald D.; Trück, Stefan

doi:10.1016/j.eneco.2014.11.013

Cited by 152 publications

(56 citation statements)

References 25 publications

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“…Stock prices for alternative energy companies are found to be impacted by shocks to technology stock prices but shocks to oil prices do not have an impact on alternative energy companies. Inchauspe et al [14] investigate the impact of energy prices and stock market indices on private investments in renewable energy, finding that these have shown substantial growth attributable to government policies, oil prices and evolving market liquidity. Kumar et al [15] analyze the relationship between oil prices and alternate energy prices, finding that oil prices, stock prices for high technology firms and interest rates impact clean stocks.…”

Section: Introductionmentioning

confidence: 99%

Is Investing in Companies Manufacturing Solar Components a Lucrative Business? A Decision Tree Based Analysis

2020

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In an era of increasing energy production from renewable sources, the demand for components for renewable energy systems has dramatically increased. Consequently, managers and investors are interested in knowing whether a company associated with the semiconductor and related device manufacturing sector, especially the photovoltaic (PV) systems manufacturers, is a money-making business. We apply a new approach that extends prior research by applying decision trees (DTs) to identify ratios (i.e., indicators), which discriminate between companies within the sector that do (designated as “green”) and do not (“red”) produce elements of PV systems. Our results indicate that on the basis of selected ratios, green companies can be distinguished from the red companies without an in-depth analysis of the product portfolio. We also find that green companies, especially operating in China are characterized by lower financial performance, thus providing a negative (and unexpected) answer to the question posed in the title.

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Section: Introductionmentioning

confidence: 99%

Is Investing in Companies Manufacturing Solar Components a Lucrative Business? A Decision Tree Based Analysis

2020

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“…from the turn of the millennium until the global financial crisis (see Henriques and Sadorsky 2008;Kumar et al 2012;Bohl et al 2015;Sadorsky 2012;Inchauspe et al 2015;Bohl et al 2013;Managi and Okimoto 2013). The worsening state of the global economy thereafter lands the industry in substantial difficulties.…”

Section: Insert Table IV About Herementioning

confidence: 99%

European Green Mutual Fund Performance: A Comparative Analysis with their Conventional and Black Peers

2015

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We conduct the first comparative analysis of the financial performance of European green, black (fossil energy and natural resource) and conventional mutual funds. Based on a unique dataset of 175 green, 259 black and 976 conventional mutual funds, the investigation contrasts the financial performance of the three dissimilar investment orientations over the 1991-2014 period. Over the full sample period, green mutual funds significantly underperform relative to conventional funds, while no significant risk-adjusted performance differences between green and black mutual funds could be established during the same period. Environmentally friendly investment vehicles display a significant exposure to small cap and growth stocks, while black funds are more exposed to value stocks. Remarkably, the green funds' risk-adjusted return profile progressively improves over time until no difference in the performance of the green and the conventional classes could be discerned. Further evidence suggests that the green funds are beginning to significantly outperform their black peers, especially over the 2012-2014 investment window.JEL classification: F30, G11, G15, G23, M14

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“…In the studies that looked into relationship between oil prices and stock of renewable energy companies, much attention was given to 2008-09 financial crisis: many saw it is as a watershed and a game-changing year. Some studies found that rising oil prices in early 2000s correlates with growing investments in renewables [2], it was also noted that oil peak in 2008 was coupled with the peak of renewable energy investments [8]. In the paper cited above, O. Alsayegh found evidence that from 2009 performance of renewable energy index RENIXX decoupled from oil prices, mostly because renewable technologies became more mature and turned into strategic choice for governments, including even those of oil exporting countries [2].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Inchauspe et al noted that during 2008-09 crisis investments decreased in Europe and USA, where renewables largely related on public and private market investments, but were not so much affected in Asia and Oceania, where government funding was more important. It led them to expect that government policies would be a significant factor influencing stock of renewable energy companies and the connection between renewable energy and oil prices [8]. O. Alsayegh also came to a conclusion that the relation between oil and renewables would largely depend on the region [2].…”

Section: Literature Reviewmentioning

confidence: 99%

Exploring relationship between oil prices and renewable energy investments

Avramenko¹,

Mujumdar²

2020

MEP

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Subject/topic. The current paper explores the relationship between oil price and renewable energy investments basing on the example of six countries: USA, Germany, Japan, China, India and Brazil. Goals/objectives. The purpose of the research is to understand whether renewable energy investments reflect the dynamics of oil prices, and to explain the reasons for the findings. Methodology. The study examines the relationship for the four time intervals using correlation tables. It also establishes whether the correlation is influenced by the share of oil in country's electricity generation and net share of oil imports in energy use. Findings. The results show weak correlation between oil price and investments in renewables, as well as low significance of control factors almost in all studied cases. However, it was also found that there is a tendency for growing renewable energy investments in the period of high oil prices. Conclusions/relevance. The results prove findings from literature review and support overall understanding that in recent decades, renewable energy investments decoupled from oil prices. There are two main reasons for that: first, renewable energy investments are largely incentivized by subsidies and support schemes; second, renewables and oil compete on different markets. Practical significance. Findings of the paper can help various stakeholders to understand renewable energy market, as well as to make investment decisions in renewable energy.

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The dynamics of returns on renewable energy companies: A state-space approach

Cited by 152 publications

References 25 publications

Is Investing in Companies Manufacturing Solar Components a Lucrative Business? A Decision Tree Based Analysis

Is Investing in Companies Manufacturing Solar Components a Lucrative Business? A Decision Tree Based Analysis

European Green Mutual Fund Performance: A Comparative Analysis with their Conventional and Black Peers

Exploring relationship between oil prices and renewable energy investments

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