The article titled “Precious metals as safe-haven for clean energy stock investment: Evidence from nonparametric Granger causality in distribution test”, of which Prof. Seyfettin ERDOĞAN, a member of the Department of Economics of our university, is the lead author, was published in the 79th issue of Resources Policy Journal.
In this study, ERDOĞAN et al. states that renewable energy investments have increased significantly in the last decade due to global climate change, sustainable development and increasing risks in energy security, but investments in clean energy technologies are far from meeting the net zero carbon emission target by 2050. Emphasizing the need for mobilization for clean energy investments in this context, ERDOĞAN et al. focused on the relationship between precious metal prices, which economic agents see as a safe haven against the risks in clean energy investments, and these markets.
ERDOĞAN et al. examined the relationship between clean energy resources and precious metal prices in the context of causality. In the study, WilderHill Clean Energy Index was used as a criterion for the clean energy exchange, and gold, silver, platinum and palladium prices as precious metals were used, and estimates were made based on the values of these variables between 2001 and 2021. According to the empirical results, it is concluded that clean energy stock prices are advantageous in affecting precious metal prices and that precious metals cannot be used to hedge the downside risk of clean energy stock investments. Emphasizing that these findings are important for investors to reduce their portfolio risks, ERDOĞAN et al. stated that in addition to public investments in the clean energy sector, institutional investments are also necessary to reduce carbon emissions.
Erdoğan, Seyfettin, Gedikli, A., Çevik, E. İ., Erdoğan, F., & Çevik, E. (2022). Precious Metals as Safe-haven for Clean Energy Stock Investment: Evidence from Nonparametric Granger Causality in Distribution Test. Resources Policy, 79, 102945.