Greed or fear: does investor sentiment drive renewable energy stocks and cryptocurrencies?

Purpose To examine the dynamic spillover effects among investor sentiment (FGI), renewable energy stocks and cryptocurrencies. Design/methodology/approach Employs the quantile connectedness approach. Findings The results indicate that, compared to the median quantile, the connectedness among variables is more robust at the extreme quantiles. The dynamic analysis also reveals that, under extreme quantile conditions, the connectedness exhibits intense time-varying properties and asymmetries, and some major extreme events have exerted enormous influences on the spillover effects. Notably, at the median quantile level, FGI is primarily a risk receiver, while renewable energy stocks and cryptocurrencies are predominantly risk transmitters. However, under extreme quantile conditions, FGI at certain times turns into a risk transmitter with significant spillover effects on renewable energy stocks and cryptocurrencies, hence reflecting its growing dominance in the system. Overall, FGI plays a pivotal role in the interplay between renewable energy stocks and cryptocurrencies. Originality/value These findings have significant implications for governments to optimise risk prevention policies and valuable recommendations for investors in asset allocation and risk management under the environment of extreme market conditions.