What REALLY drives clean energy stocks - Fear or Fundamentals?

A-Tier
Journal: Energy Economics
Year: 2025
Volume: 148
Issue: C

Authors (2)

Zheng, Yuqi (not in RePEc) Lucey, Brian (Trinity College Dublin)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This study investigates the relationship between the S&P Global Clean Energy Index and novel factors based on the GDELT Database, such as global news confidence levels, environmental sentiment, media coverage preferences in the US and China, and the ratio of environmental to overall reporting. We identify variables sourced from recent literature. Using the Isolation Forest method to select potential explanatory variables, Extreme Bounds Analysis reveals that “Fear” factors such as media sentiment and confidence show consistent and significant correlations with the S&P Global Clean Energy Index. These findings highlight the influential role of media sentiment in driving market confidence and industry growth. In contrast, some traditionally popular “Fundamental” factors, such as the Global Financial Stress Indicator, Green Bond Index, and US Dollar Index, lack robustness. While they appear reliable under normal distribution models, they exhibit substantial uncertainty under alternative models, limiting their explanatory power.

Technical Details

RePEc Handle
repec:eee:eneeco:v:148:y:2025:i:c:s0140988325003822
Journal Field
Energy
Author Count
2
Added to Database
2026-01-25