Assessing the Impact of Physical and Transition Climate Risks on Clean Energy and Green Bond Markets: A Quantile-on-Quantile Connectedness Analysis
Using a quantile-on-quantile approach, this study examines how physical (natural disasters) and transition (policy uncertainty) climate risks affect the S&P Global Clean Energy and Green Bond indices in the U.S. from 2015 to 2023. The findings reveal complex, market-specific relationships, with green assets providing better hedging against transition risks. The study recommends policy measures to strengthen green finance and clean energy as strategies for addressing climate change and promoting sustainable development.
Authors
- Fayçal Chiad (ORCID: https://orcid.org/0000-0002-5537-3221)
Institutions
- Imam Mohammad ibn Saud Islamic University (SA)
Publication Details
- Journal
- Energy RESEARCH LETTERS
- Published
- 2026-04-02
- DOI
- https://doi.org/10.46557/001c.156409
- Primary Topic
- Sustainable Finance and Green Bonds
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- Al-Imam Muhammad Ibn Saud Islamic University