The Impact of International Oil Prices on the Stock Price Fluctuations of China’s Renewable Energy Enterprises

Hsiao, Cody Yu‐Ling; Lin, Weishun; Wei, Xinyang; Yan, Gaoyun; Li, Siqi; Sheng, Ning

doi:10.3390/en12244630

Cited by 33 publications

(18 citation statements)

References 26 publications

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“…It is also possible to see the positive effect of high crude oil prices on the renewable energy sector through the improvement in the stock market performance of energy companies [18]. Studies [19][20][21] suggest that there is a positive relationship between the stock prices of renewable energy companies, and crude oil prices confirm this situation. The roots of this positive bond are that clean energy is often seen as a substitute for fossil fuel energy [18].…”

Section: Introductionmentioning

confidence: 97%

The Impact of Oil Price on Transition toward Renewable Energy Consumption? Evidence from Russia

et al. 2021

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This research investigates the impact of oil price, income and carbon dioxide emissions on renewable energy consumption in Russia for the data period from 1990 to 2015, using the Vector Error Correction Models and the Canonical Cointegrating Regression method. This article is the only study conducting individual time-series analysis that emphasizes the effect of oil price on renewable energy consumption in the case of Russia. The results of empirical analysis conclude that oil price affects renewable energy consumption negatively. The negative oil price effects on renewable energy use can be interpreted as a sign of issue that stems from higher oil prices and slows the transition from conventional to renewable energy sources. Additionally, we found that there is a positive and statistically significant influence of real GDP per capita as a proxy of income on renewable energy consumption, whereas the carbon dioxide emissions have a negative and statistically insignificant influence on renewable energy consumption. Considering these empirical results, Russia, which has a significant share in energy production in the world, should focus on the use of renewable energy in order to maintain this superiority and its sustainability. The findings of this paper may be useful to policymakers and may help to contribute to existing literature for future research in the case of oil-exporting countries.

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Section: Introductionmentioning

confidence: 97%

The Impact of Oil Price on Transition toward Renewable Energy Consumption? Evidence from Russia

et al. 2021

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“…Khan et al (2019) study association of oil and Shanghai Stock Exchange (China) for a period 2000-2018 and finds a negative relationship by using ARDL technique. The results of negative association (for the short run) are confirmed by Hsiao et al (2019) after studying the relationship between oil and renewable energy stocks in china for a period 2014-2018.…”

Section: Literature Reviewmentioning

confidence: 61%

Relationship Between Oil and Stock Markets: Evidence From Pakistan Stock Exchange

Hanif¹

2020

IJEEP

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This study documents the impact of price variations in global markets, specifically oil, on stock returns at Pakistan stock exchange (PSX). We select three global markets (oil, gold and currency exchange) and two PSX indices (conventional and Islamic) for a period 2009-2020 to provide evidence. Monthly data for the selected time series is used for analysis. Analysis techniques include descriptive statistics, stationarity testing, Johansen cointegration, correlation and regression analysis. Findings suggest joint long-run co-movements of selected markets. Regression results indicate the significance of oil prices at 1% level, with positive signs, in the stock return generation process at PSX (for both indices conventional and Islamic). Other selected markets (gold and currency exchange) are although significant but at a higher degree, with negative signs. For the oil market, results confirm the demand-pull inflation hypothesis in Pakistani market. Results also confirm shifting to gold market by investors in the period of reductions in stock returns. Finally, depreciation of domestic currency discourages investors in buying stocks. We recommend investors to have an eye on oil, gold and currency markets while making investment decisions at PSX. We also recommend to policymakers to take timely actions for exchange rate stability, to avoid the outflow of capital. To the best of our knowledge, this is the only study documenting the influence of global markets on stock returns at PSX in recent years.

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“…Literature has also identified the impact of oil price shocks on macroeconomic aggregates such as the level of investment, stock prices and returns [12][13][14][15][16][17], inflation rate [18], industrial production and exchange rates [19][20][21][22][23], as well as financial and monetary policy [24]. There has also been a large number of studies concerning the impact of crude oil prices on various groups of commodities such as: gold [25,26], silver, platinum and palladium [27], zinc, copper and molybdenum [28], agricultural [29][30][31][32], and energy commodities [33][34][35][36][37].…”

Section: Introductionmentioning

confidence: 99%

“…1, i f f or observation c, a call option was bought 0, i f f or observation c, a call option was not bought (16) (b) %MP (percent of maximum profit)-the percentage of the best possible result (MP) achieved by this method (EP); the value of the %MP is obtained from the following equation:…”

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confidence: 99%

Effectiveness of Artificial Neural Networks in Hedging against WTI Crude Oil Price Risk

2021

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Despite the growing share of renewable energy sources, most of the world energy supply is still based on hydrocarbons and the vast majority of world transport is fuelled by oil products. Thus, the profitability of many companies may depend on the effective management of oil price risk. In this article, we analysed the effectiveness of artificial neural networks in hedging against the risk of WTI crude oil prices increase. This was reformulated from a regressive problem to a classification problem. The effectiveness of our approach, using artificial neural networks to classify observations, was verified for over ten years of WTI futures quotes, starting from 2009. The data analysis presented in this paper confirmed that the buyer of a call option was more often likely to incur a loss as a result of its purchase than make a profit after the final payoff from the call option. The results of the conducted research confirm that neural networks can be an effective form of protection against the risk of price fluctuations. The effectiveness of a network’s operation depends on the choice of assessment indicators, but analyses show that the networks which, for the indicator that was selected, gave the best results for the training set, also resulted in positive rates of return for the test set. Significantly, we also showed interdependence between seemingly unrelated indicators: percentage of the best possible results achieved in the analysed period of time by the proposed method and percentage of all available call options that were purchased based on the results from the networks that were used.

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The Impact of International Oil Prices on the Stock Price Fluctuations of China’s Renewable Energy Enterprises

Cited by 33 publications

References 26 publications

The Impact of Oil Price on Transition toward Renewable Energy Consumption? Evidence from Russia

The Impact of Oil Price on Transition toward Renewable Energy Consumption? Evidence from Russia

Relationship Between Oil and Stock Markets: Evidence From Pakistan Stock Exchange

Effectiveness of Artificial Neural Networks in Hedging against WTI Crude Oil Price Risk

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