The Time-Varying Relationship Between Economic Policy Uncertainty and Returns of New Energy Stocks
DOI:
https://doi.org/10.54097/kc8r1n67Keywords:
Economic policy uncertainty, International crude oil prices, Carbon prices, New energy stocks, TVP-VAR model.Abstract
With the increasing global emphasis on environmental protection, green development has become an important part of high-quality development in various countries and has stirred up enthusiasm for new energy consumption and investment. This paper uses a TVP-VAR model to analyze the dynamic effects between Chinese economic policy uncertainty, international crude oil prices, Guangdong carbon prices, and the CSI New Energy Index from July 2015 to November 2023. It turns out that they are closely linked in the short term, with obvious time-varying features in direction and magnitude. The effects of economic policy uncertainty are more persistent when extreme events occur. Finally, based on the research results, some constructive suggestions are proposed, such as establishing a risk early warning mechanism among them, improving the market system, enhancing regulatory capabilities, and promoting the development of green finance.
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