Work

Assessing the Impact of Physical and Transition Climate Risks on Clean Energy and Green Bond Markets: A Quantile-on-Quantile Connectedness Analysis

Year: 2026

Type: article

Abstract: 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.

Source: Energy RESEARCH LETTERS

DOI: 10.46557/001c.156409

Author: Faycal Chiad

Institution: Imam Mohammad ibn Saud Islamic University

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Climate action

Open Access status: diamond

Funder: Al-Imam Muhammad Ibn Saud Islamic University