Turbulent tides: When green energy ambitions collide with brown resilience in the storm of uncertainty

Geopolitical risks (GPR), economic policy uncertainty (EPU), and climate policy uncertainty (CPU) exert a compounded influence on the energy market and related financial assets. This article systematically examines the differential responses of China's green and brown energy stock prices under the combined impact of GPR, EPU, and CPU. The latest proposed joint impulse response function (jIRF) is used to evaluate the combined effects of energy stock prices, which considers the dynamic correlation and interaction mechanism between variables, providing a more precise quantification of the comprehensive impact. Empirical results indicate that the green energy stock price (GP) is more sensitive to uncertainty shocks. When uncertain events occur, GP will quickly be negatively impacted. In contrast, the price of brown energy stock (BP) will initially be positively influenced by the synergistic effect of three factors closely related to its strategic position in the energy system. Moreover, the impact on GP will shift from negative to positive, highlighting the safe haven nature of green stocks. This study has significant implications for both policy-makers and investors.