Analyzing the Response of Renewable Energy Equities to Oil Price Movements

Abstract

The research examines the impact of fluctuations in oil prices on the performance of renewable energy stocks in India through panel quantile regression analysis. The findings indicate a consistently adverse influence on oil price returns, challenging the conventional notion of the substitution effect. The results underscore dynamic investor sentiments, highlighting the need for adaptive investment strategies. This study enhances the discussion on climate risk and equity pricing in sustainable financing by concentrating on firm-level dynamics and integrating an asset pricing approach.