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THE CAUSALITY ANALYSIS BETWEEN THE STOCK PRICES OF RENEWABLE ENERGY COMPANIES AND CARBON EMISSION PRICES: BASED ON GERMANY, TURKEY, USA AND BRAZIL

Year 2023, Issue: 4, 188 - 199, 25.10.2023

Abstract

This study aims to analyze the impact of countries' activities in the direction of sustainable development movements by using data on the stock prices of energy companies in Germany, USA, Brazil and Turkey, the gross domestic product of the countries and the carbon emission price. The analysis using the Granger causality method reveals that there is a causal relationship between energy stocks and carbon emission prices. The results show that energy stocks and carbon emission prices affect each other depending on the level of development of countries. In particular, higher share prices of energy companies in developed countries are found to be an indicator of greater investment in sustainable development activities. However, lower share prices of energy companies in developing countries indicate less investment in sustainable development activities. The results emphasize that the share prices of energy companies are an important indicator for countries to achieve their sustainable development goals. This study can help investors and policymakers in the energy sector to make decisions based on stock and carbon emission price analysis to promote sustainable development-oriented activities.

References

  • Ateş, S. A., & Muradiye, A. (2015). “Sosyo-Ekolojik Dönüşüm Karşısında Türkiye: Bir Alternatif Olarak Yeşil Büyüme”. Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi, 3(4): 69-94.
  • Chang, C. L., Ilomäki, J., Laurila, H. & McAleer, M. (2020). “Causality Between CO2 Emissions And Stock Markets”. Energies, 13, 2893.
  • Danyal, Y. & Gümüş, U. T. (2022). VAR Analizi. İKSAD Publishing House, 12-16.
  • Hatzigeorgiou, E., Polatidis, H., & Haralambopoulos, D. (2011). “CO2 Emissions, GDP and Energy Intensity: A Multivariate Cointegration and Causality Analysis for Greece”, Applied Energy, 88(4): 1377-1385.
  • Jacobson, M. Z., Delucchi, M. A., Bazouin, G., Bauer, Z. A., Heavey, C. C., Fisher, E.,& Yeskoo, T. W. (2015). “100% Clean And Renewable Wind, Water, And Sunlight (WWS) All-Sector Energy Roadmaps for the 50 United States”w. Energy & Environmental Science, 8(7): 2093-2117.
  • Khan, M. & Oztürk, I. (2021). “Examining the Direct and Indirect Effects of Financial Development on CO2 Emissions for 88 Developing Countries”. Journal of Environmental Management, 293.
  • Khoshnevis Yazdi, S., & Ghorchi Beygi, E. (2018). “The Dynamic Impact of Renewable Energy Consumption and Financial Development on CO2 Emissions: For Selected African Countries”. Energy Sources, Part B: Economics, Planning, and Policy, 13(1):13-20.
  • Li, Y., Wei, Y., Shan, S., & Tao, Y. (2018). “Pathways to a Low-Carbon Economy: Estimations on Macroeconomic Costs and Potential of Carbon Emission Abatement in Beijing. Journal of Cleaner Production, 199: 603-615.
  • Marjanović, V., Milovančević, M., & Mladenović, I. (2016). “Prediction of GDP Growth Rate Based on Carbon Dioxide (CO2) Emissions”. Journal of CO2 Utilization, 16: 212-217.
  • Nejat, P., Jomehzadeh, F., Taheri, M. M., Gohari, M., & Majid, M. Z. A. (2015). “A Global Review of Energy Consumption, CO2 Emissions and Policy in the Residential Sector (With An Overview Of The Top Ten CO2 Emitting Countries)”. Renewable and Sustainable Energy Reviews, 43: 843-862.
  • Ozturk, I., & Acaravci, A. (2013). “The Long-Run and Causal Analysis of Energy, Growth, Openness and Financial Development on Carbon Emissions in Turkey”. Energy Economics, 36: 262-267.
  • Pao, H. T., & Tsai, C. M. (2011). “Multivariate Granger Causality Between CO2 Emissions, Energy Consumption, FDI (Foreign Direct İnvestment) And GDP (Gross Domestic Product): Evidence from A Panel of BRIC (Brazil, Russian Federation, India, And China) Countries”. Energy, 36(1), 685-693.
  • Paramati, S., Mo, D. & Gupta, R. (2017). “The Effects of Stock Market Growth and Renewable Energy Use on CO2 Emissions: Evidence from G20 Countries”. Energy Econ, 66: 360–371.
  • Shojaie, A., & Fox, E. B. (2022). “Granger Causality: A Review and Recent Advances”. Annual Review of Statistics and Its Application, 9: 289-319.
  • Stretesky, P. B., & Lynch, M. J. (2009). “A Cross-National Study of the Association between Per Capita Carbon Dioxide Emissions and Exports To The United States”. Social Science Research, 38(1): 239-250.
  • Tucker, M. (1995). “Carbon Dioxide Emissions and Global GDP”. Ecological Economics, 15(3): 215-223.

THE CAUSALITY ANALYSIS BETWEEN THE STOCK PRICES OF RENEWABLE ENERGY COMPANIES AND CARBON EMISSION PRICES: BASED ON GERMANY, TURKEY, USA AND BRAZIL

Year 2023, Issue: 4, 188 - 199, 25.10.2023

Abstract

Bu çalışma, Almanya, ABD, Brezilya ve Türkiye'deki enerji şirketlerinin hisse senedi fiyatları, ülkelerin gayri safi yurtiçi hasılaları ve karbon emisyon fiyatı verilerini kullanarak ülkelerin sürdürülebilir kalkınma hareketleri doğrultusundaki faaliyetlerinin etkisini analiz etmeyi amaçlamaktadır. Granger nedensellik yöntemi kullanılarak yapılan analiz, enerji stokları ile karbon emisyon fiyatları arasında bir nedensellik ilişkisi olduğunu ortaya koymaktadır. Sonuçlar, ülkelerin gelişmişlik düzeylerine bağlı olarak enerji stokları ile karbon emisyon fiyatlarının birbirini etkilediğini göstermektedir. Özellikle gelişmiş ülkelerdeki enerji şirketlerinin hisse fiyatlarının yüksek olması, sürdürülebilir kalkınma faaliyetlerine daha fazla yatırım yapıldığının bir göstergesi olarak görülmektedir. Bununla birlikte, gelişmekte olan ülkelerdeki enerji şirketlerinin hisse fiyatlarının düşük olması, sürdürülebilir kalkınma faaliyetlerine daha az yatırım yapıldığını göstermektedir. Sonuçlar, enerji şirketlerinin hisse fiyatlarının ülkelerin sürdürülebilir kalkınma hedeflerine ulaşmalarında önemli bir gösterge olduğunu vurgulamaktadır. Bu çalışma, sürdürülebilir kalkınma odaklı faaliyetleri teşvik etmek için enerji sektöründeki yatırımcıların ve politika yapıcıların stok ve karbon emisyonu fiyat analizine dayalı kararlar almalarına yardımcı olabilir.

References

  • Ateş, S. A., & Muradiye, A. (2015). “Sosyo-Ekolojik Dönüşüm Karşısında Türkiye: Bir Alternatif Olarak Yeşil Büyüme”. Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi, 3(4): 69-94.
  • Chang, C. L., Ilomäki, J., Laurila, H. & McAleer, M. (2020). “Causality Between CO2 Emissions And Stock Markets”. Energies, 13, 2893.
  • Danyal, Y. & Gümüş, U. T. (2022). VAR Analizi. İKSAD Publishing House, 12-16.
  • Hatzigeorgiou, E., Polatidis, H., & Haralambopoulos, D. (2011). “CO2 Emissions, GDP and Energy Intensity: A Multivariate Cointegration and Causality Analysis for Greece”, Applied Energy, 88(4): 1377-1385.
  • Jacobson, M. Z., Delucchi, M. A., Bazouin, G., Bauer, Z. A., Heavey, C. C., Fisher, E.,& Yeskoo, T. W. (2015). “100% Clean And Renewable Wind, Water, And Sunlight (WWS) All-Sector Energy Roadmaps for the 50 United States”w. Energy & Environmental Science, 8(7): 2093-2117.
  • Khan, M. & Oztürk, I. (2021). “Examining the Direct and Indirect Effects of Financial Development on CO2 Emissions for 88 Developing Countries”. Journal of Environmental Management, 293.
  • Khoshnevis Yazdi, S., & Ghorchi Beygi, E. (2018). “The Dynamic Impact of Renewable Energy Consumption and Financial Development on CO2 Emissions: For Selected African Countries”. Energy Sources, Part B: Economics, Planning, and Policy, 13(1):13-20.
  • Li, Y., Wei, Y., Shan, S., & Tao, Y. (2018). “Pathways to a Low-Carbon Economy: Estimations on Macroeconomic Costs and Potential of Carbon Emission Abatement in Beijing. Journal of Cleaner Production, 199: 603-615.
  • Marjanović, V., Milovančević, M., & Mladenović, I. (2016). “Prediction of GDP Growth Rate Based on Carbon Dioxide (CO2) Emissions”. Journal of CO2 Utilization, 16: 212-217.
  • Nejat, P., Jomehzadeh, F., Taheri, M. M., Gohari, M., & Majid, M. Z. A. (2015). “A Global Review of Energy Consumption, CO2 Emissions and Policy in the Residential Sector (With An Overview Of The Top Ten CO2 Emitting Countries)”. Renewable and Sustainable Energy Reviews, 43: 843-862.
  • Ozturk, I., & Acaravci, A. (2013). “The Long-Run and Causal Analysis of Energy, Growth, Openness and Financial Development on Carbon Emissions in Turkey”. Energy Economics, 36: 262-267.
  • Pao, H. T., & Tsai, C. M. (2011). “Multivariate Granger Causality Between CO2 Emissions, Energy Consumption, FDI (Foreign Direct İnvestment) And GDP (Gross Domestic Product): Evidence from A Panel of BRIC (Brazil, Russian Federation, India, And China) Countries”. Energy, 36(1), 685-693.
  • Paramati, S., Mo, D. & Gupta, R. (2017). “The Effects of Stock Market Growth and Renewable Energy Use on CO2 Emissions: Evidence from G20 Countries”. Energy Econ, 66: 360–371.
  • Shojaie, A., & Fox, E. B. (2022). “Granger Causality: A Review and Recent Advances”. Annual Review of Statistics and Its Application, 9: 289-319.
  • Stretesky, P. B., & Lynch, M. J. (2009). “A Cross-National Study of the Association between Per Capita Carbon Dioxide Emissions and Exports To The United States”. Social Science Research, 38(1): 239-250.
  • Tucker, M. (1995). “Carbon Dioxide Emissions and Global GDP”. Ecological Economics, 15(3): 215-223.
There are 16 citations in total.

Details

Primary Language English
Subjects Ecological Economics, Finance
Journal Section Research Articles
Authors

Cemaynur Bolat 0009-0001-8398-3086

Furkan Enes Köse 0009-0007-2695-8160

Onur Erçetin 0009-0002-9162-1939

Sena Yalçın 0009-0005-7850-7842

Fatma Selen Madenoğlu 0000-0002-5577-4471

Early Pub Date October 24, 2023
Publication Date October 25, 2023
Published in Issue Year 2023 Issue: 4

Cite

APA Bolat, C., Köse, F. E., Erçetin, O., Yalçın, S., et al. (2023). THE CAUSALITY ANALYSIS BETWEEN THE STOCK PRICES OF RENEWABLE ENERGY COMPANIES AND CARBON EMISSION PRICES: BASED ON GERMANY, TURKEY, USA AND BRAZIL. Kapanaltı Dergisi(4), 188-199.