The connection between oil and technology stock prices and clean energy prices before and after the Paris Agreement: Evidence from a nonlinear exogenous transition model

Dr. Fahmy received an Internal Grant for Research to assess the impact of the Paris Agreement and climate events on the degree of persistence in nonlinear regimes in the cycle of clean energy prices.

This study investigates the impact of the Paris Agreement and the recent climate crisis on the connection between clean energy prices and oil and technology stock prices by fitting a nonlinear regime switching model to the clean energy cycle and using crude oil price and technology stock prices as exogenous regime driving variables. The intention from using this framework is twofold: First, to formally test the existence of an exogenous, one-way, directional causality from crude oil price and technology stock prices to clean energy prices. Second, to assess the strength of this causality after the Paris Agreement.