Do global COVOL and geopolitical risks affect clean energy prices? Evidence from explainable artificial intelligence models

A-Tier
Journal: Energy Economics
Year: 2025
Volume: 141
Issue: C

Authors (3)

Ben Jabeur, Sami (not in RePEc) Bakkar, Yassine (not in RePEc) Cepni, Oguzhan (Central Bank of the United Ara...)

Score contribution per author:

1.345 = (α=2.02 / 3 authors) × 2.0x A-tier

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

Abstract

We investigate the impact of global common volatility and geopolitical risks on clean energy prices. Our study utilizes daily data from January 1, 2001, to March 18, 2024. Using a new framework based on explainable artificial intelligence (XAI) methods, our findings demonstrate that the COVOL index outperforms the geopolitical risk index in accurately predicting clean energy prices. Furthermore, the Extreme Trees algorithm shows superior performance compared to traditional regression techniques. Our findings indicate that XAI improves transparency, thereby making a substantial contribution to agile decision-making in predicting clean energy prices. Practitioners, including investors and portfolio managers, can enhance investment decisions and manage systemic risks by incorporating COVOL into their risk assessment and asset allocation models.

Technical Details

RePEc Handle
repec:eee:eneeco:v:141:y:2025:i:c:s0140988324008211
Journal Field
Energy
Author Count
3
Added to Database
2026-01-25