The Clean Energy-Ecology Interrelatedness: Evidence from the S&P Dow Jones Indices

In the context where “sustainable energy” promotes “environmental sustainability,” and as private investment in clean energy gains traction as a vital measure for climate change mitigation, evaluating its impact on ecology-focused firms is essential. This study examines the “clean energy-ecology nexus,” investigating whether the rapid growth of clean energy technologies driving sustainable energy transitions positively influences ecology through effective water and waste management practices and optimized industrial systems. Understanding this interrelationship within the frequency domain allows for informed conclusions. We apply a recently developed frequency-domain Granger-causality inferential framework to analyze the clean energy-ecology nexus in both unconditional and conditional contexts. The results suggest that clean energy technologies benefit ecology, reinforcing the connection between clean energy and ecological health.