Work

Unveiling the dynamic interconnectedness of fossil fuels, clean energy, water, and technology assets

Year: 2025

Type: article

Abstract: This study explores dynamic interconnectedness and volatility spillovers among four asset clusters—brown (fossil fuels), green (clean energy), blue (water-related), and orange (technology)—from April 2014 to October 2024, incorporating major geopolitical events, such as COVID-19, the Russia-Ukraine war, and the Israel-Gaza conflict. Using time-varying parameter–vector autoregressions and wavelet coherence, the analysis shows that green and blue clusters display higher resilience and lower spillovers under crisis conditions, suggesting their potential to act as safe havens. Meanwhile, the brown cluster faces heightened vulnerability to energy market shocks, and the orange cluster strengthens its ties with clean energy assets when driven by technological innovation. These findings highlight growing decoupling between clean energy and fossil fuels and the pivotal role of technology in accelerating that shift.

Source: Borsa Istanbul Review

DOI: 10.1016/j.bir.2025.04.003

Author: Melike Aktaş Bozkurt

Institution: Ostim Technical University

Language: English

Topic: Market Dynamics and Volatility

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $1,500