Water and Emerging Energy Markets Nexus: Fresh Evidence from Advanced Causality and Correlation Approaches
Energies, vol.17, no.13, 2024 (SCI-Expanded, Scopus)
- Publication Type: Article / Article
- Volume: 17 Issue: 13
- Publication Date: 2024
- Doi Number: 10.3390/en17133079
- Journal Name: Energies
- Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, Aerospace Database, Agricultural & Environmental Science Database, CAB Abstracts, Communication Abstracts, Compendex, INSPEC, Metadex, Veterinary Science Database, Directory of Open Access Journals, Civil Engineering Abstracts
- Keywords: multi-scales, prediction, quantiles, renewable energy, water
- Open Archive Collection: AVESIS Open Access Collection
- Süleyman Demirel University Affiliated: Yes
Abstract
This work provides an in-depth investigation of the dynamic interaction patterns between water stocks and renewable energy markets through the application of continuous wavelet analysis, dynamic correlation analysis, and time-varying Granger causality analysis. In addition, this study utilizes daily pricing indices, namely the S&P Global Water Index, Solactive Global Wind Energy Index, and Solactive Global Solar Energy Index, spanning from 18 May 2011 to 23 June 2022. The results show significant correlation patterns between the indices, ranging from moderate to high. Notably, robust correlations have been detected starting from 2015. The research also discovered a varied and inconsistent relationship between frequency and causation throughout different time periods. Moreover, the results reveal an asymmetry in the causal effects and a symmetry correlation at tail quantile ranges. Policymakers and market participants must consider these insights to make wise financial and strategic decisions.