Assessing the Impact of Physical and Transition Climate Risks on Clean Energy and Green Bond Markets: A Quantile-on-Quantile Connectedness Analysis
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.
Fields of Study & Subjects
Sustainable Finance and Green Bonds
Market Dynamics and Volatility
Energy
Environment
Economic Growth
Publication details
- Journal / source
- Energy RESEARCH LETTERS
- Publisher
- Asia-Pacific Applied Economics Association
- Volume
- 7
- Issue
- Early View
- Publication date
- 2 April 2026
- Language
- EN