The impact of international oil prices on the stock price fluctuations of China's renewable energy enterprises

Cody Yu-Ling Hsiao, Weishun Lin, Xinyang Wei, Gaoyun Yan, Siqi Li, Ni Sheng

Research output: Contribution to journalArticlepeer-review

35 Citations (Scopus)

Abstract

In order to address a series of issues, including energy security, global warming, and environmental protection, China has ranked first in global renewable investment for the seventh consecutive year. However, developing a renewable energy industry requires a significant capital investment. Also, the international oil price fluctuations have an important impact on the stock prices of renewable energy firms. Thus, in order to provide implications for market investment as well as policy recommendations, this paper studied the spillover effect of international oil prices on the stock prices of China's renewable energy listed companies. We used a Vector Autoregressive (VAR) model with innovations using a Factor-GARCH (Generalized Autoregressive Conditional Heteroskedasticity) process to evaluate the impact of market co-movements and time-varying volatility and correlation between the international oil price and China's renewable energy market. The results show that the international oil price has a significant price spillover effect on the stock prices of China's renewable energy listed companies. Moreover, the fluctuations of international oil prices have an influence on the stock price variations of Chinese renewable energy listed companies.

Original languageEnglish
Article number4630
JournalEnergies
Volume12
Issue number24
DOIs
Publication statusPublished - 5 Dec 2019
Externally publishedYes

Keywords

  • China
  • Factor-GARCH model
  • International crude oil price
  • Renewable energy listed companies
  • VARmodel

Fingerprint

Dive into the research topics of 'The impact of international oil prices on the stock price fluctuations of China's renewable energy enterprises'. Together they form a unique fingerprint.

Cite this