Time-frequency connectedness between climate exchange-traded funds and climate policy uncertainty
Global warming pressures legislators to alter climate policies to steer the world economy on a path with a net zero carbon footprint. This study examines the returns and volatility connectedness and the spillover of climate exchange-traded funds with climate policy uncertainty in the time-frequency...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-07-01
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| Series: | Borsa Istanbul Review |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2214845025000481 |
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| author | Mohammad Enamul Hoque Lain-Tze Tee Md Akther Uddin Si-Roei Kew Faik Bilgili |
| author_facet | Mohammad Enamul Hoque Lain-Tze Tee Md Akther Uddin Si-Roei Kew Faik Bilgili |
| author_sort | Mohammad Enamul Hoque |
| collection | DOAJ |
| description | Global warming pressures legislators to alter climate policies to steer the world economy on a path with a net zero carbon footprint. This study examines the returns and volatility connectedness and the spillover of climate exchange-traded funds with climate policy uncertainty in the time-frequency domains. This research explores the influence of investors’ attention to climate change and uncertainty factors. The results reveal that climate policy uncertainty and exchange-traded funds share high returns and volatility connectedness across time, in which short-term connectivity dominates long-term connectivity. The results across the different frequencies indicate that climate attention, global carbon emission futures, oil market uncertainty, global economic policy, geopolitical risk, and global financial stress play an important role in the connectedness between climate policy uncertainty and climate exchange-traded funds. The empirical findings can help green investors choose the best exchange-traded funds depending on their investment horizon. |
| format | Article |
| id | doaj-art-bb2c178a573c4b71a041a087dea95f2a |
| institution | Kabale University |
| issn | 2214-8450 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Borsa Istanbul Review |
| spelling | doaj-art-bb2c178a573c4b71a041a087dea95f2a2025-08-20T03:30:32ZengElsevierBorsa Istanbul Review2214-84502025-07-0125466168010.1016/j.bir.2025.03.003Time-frequency connectedness between climate exchange-traded funds and climate policy uncertaintyMohammad Enamul Hoque0Lain-Tze Tee1Md Akther Uddin2Si-Roei Kew3Faik Bilgili4BRAC Business School, BRAC University, Dhaka, 1212, Bangladesh; Faculty of Economics and Business, Universitas Negeri Padang, Padang, IndonesiaFaculty of Economics and Management, Universiti Kebangsaan Malaysia (The National University of Malaysia), MalaysiaSchool of Business Administration, East Delta University Chittagong, BangladeshFaculty of Economics and Management, Universiti Kebangsaan Malaysia (The National University of Malaysia), MalaysiaFaculty of Economics and Administrative Sciences, Erciyes University, Kayseri, 38039, Türkiye; Corresponding author. Faculty of Economics and Administrative Sciences, Erciyes University, Kayseri, 38039, Türkiye.Global warming pressures legislators to alter climate policies to steer the world economy on a path with a net zero carbon footprint. This study examines the returns and volatility connectedness and the spillover of climate exchange-traded funds with climate policy uncertainty in the time-frequency domains. This research explores the influence of investors’ attention to climate change and uncertainty factors. The results reveal that climate policy uncertainty and exchange-traded funds share high returns and volatility connectedness across time, in which short-term connectivity dominates long-term connectivity. The results across the different frequencies indicate that climate attention, global carbon emission futures, oil market uncertainty, global economic policy, geopolitical risk, and global financial stress play an important role in the connectedness between climate policy uncertainty and climate exchange-traded funds. The empirical findings can help green investors choose the best exchange-traded funds depending on their investment horizon.http://www.sciencedirect.com/science/article/pii/S2214845025000481C32C51C52D21D40D80 |
| spellingShingle | Mohammad Enamul Hoque Lain-Tze Tee Md Akther Uddin Si-Roei Kew Faik Bilgili Time-frequency connectedness between climate exchange-traded funds and climate policy uncertainty Borsa Istanbul Review C32 C51 C52 D21 D40 D80 |
| title | Time-frequency connectedness between climate exchange-traded funds and climate policy uncertainty |
| title_full | Time-frequency connectedness between climate exchange-traded funds and climate policy uncertainty |
| title_fullStr | Time-frequency connectedness between climate exchange-traded funds and climate policy uncertainty |
| title_full_unstemmed | Time-frequency connectedness between climate exchange-traded funds and climate policy uncertainty |
| title_short | Time-frequency connectedness between climate exchange-traded funds and climate policy uncertainty |
| title_sort | time frequency connectedness between climate exchange traded funds and climate policy uncertainty |
| topic | C32 C51 C52 D21 D40 D80 |
| url | http://www.sciencedirect.com/science/article/pii/S2214845025000481 |
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