A1086
Title: Green bubbles: A noncausal approach
Authors: Alain Hecq - Maastricht University (Netherlands) [presenting]
Abstract: The phenomenon of the "green bubble" has drawn attention in the field of renewable energy investment, raising concerns about potential economic and environmental implications. An investigation into mixed causal and noncausal models applied to the Renixx green bubble indicator is presented, offering an innovative approach to analyzing such phenomena. Departing from traditional definitions of bubbles, a perspective is adopted in which the Renixx price index is viewed as following a strictly stationary process, with the bubble considered an inherent component of its dynamics. Through the exploration of causal-noncausal autoregressive processes, the aim is to uncover insights into the dynamics of green bubbles and their broader implications. The findings contribute to the understanding of financial and environmental sustainability in the context of investments in renewable energy.
