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The impact of natural resource markets and green financing on financial stability and renewable energy investment efficiency.

Authors :
Chen, Gong
Zhuoma, Lamu
Xie, Xiaowen
Xu, Ziqing
Source :
Geological Journal; Jan2024, Vol. 59 Issue 1, p245-259, 15p
Publication Year :
2024

Abstract

Energy resources' impact on gross domestic product and financial growth is controversial. The research is quiet on the potential effects of fluctuation in other areas, such as energy resource investment and finance, on exchange rates, financial and environmental indicators, making it urgent that this topic receives attention today. Our research aims to fill this gap by highlighting the fundamental insecurity of natural resource markets, energy expenditure markets and green financing markets. Because of the challenges in collecting older data, this analysis focuses on the decade from 1990 to 2020. We analysed the following asymmetry by employing the model TGARCH specification. According to the calculations, there is more room for fluctuation after a negative shock to natural resources than after a positive one. The study's empirical findings are then used to inform policy recommendations for maintaining a secure financial system and controlling the rising cost of scarce natural resources. The study also highlights the need for increased investment in green finance and recommends diversifying existing energy resource investments to foster the growth of alternative energy sources. This research suggests that we put more resources into green financing and develop new renewable energy sources. Conclusions: natural resource and energy investments are subject to volatility over time, as evidenced by the results and standard and relevant volatility assessments such as autoregressive conditional heteroscedasticity. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
00721050
Volume :
59
Issue :
1
Database :
Complementary Index
Journal :
Geological Journal
Publication Type :
Academic Journal
Accession number :
174563529
Full Text :
https://doi.org/10.1002/gj.4858