Proceedings of the 3rd International Conference on Artificial Intelligence in Economics, Finance and Management (ICAIEFM 2025)

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Dynamic Linkage Between Oil Price and Alternative Energy Stocks: A VAR Analysis

Authors
Shafeena Ali1, *, Krishnan Mahadevan2
1PhD Research Scholar, Department of Commerce, Sanatana Dharma College, Alappuzha, Kerala, India
2Assistant Professor, Department of Commerce, Sanatana Dharma College, Alappuzha, Kerala, India
*Corresponding author. Email: shafeenaali91mkd@gmail.com
Corresponding Author
Shafeena Ali
Available Online 6 November 2025.
DOI
10.2991/978-94-6463-896-7_9How to use a DOI?
Keywords
Alternative energy; Stock prices; Oil prices; India
Abstract

This study investigates the dynamic linkage between crude oil prices and renewable energy stock prices in India, while controlling for technological advancements and interest rates. The Vector Autoregressive (VAR) model for weekly data from 2018 to 2024 captures both short and long-run interactions. The results show that oil price shocks initially push renewable energy stock prices higher through the substitution effect, but the impact is short-lived. In contrast, technology shocks apply a stronger and continuous positive influence. At the same time, higher interest rates temporarily depress the prices of renewable energy and technology stocks before the effects weaken over time. Overall, the findings suggest that although oil market fluctuations shape short-term dynamics, technological progress and supportive financing conditions play a more decisive role in sustaining India’s energy transition.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 3rd International Conference on Artificial Intelligence in Economics, Finance and Management (ICAIEFM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
6 November 2025
ISBN
978-94-6463-896-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-896-7_9How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Shafeena Ali
AU  - Krishnan Mahadevan
PY  - 2025
DA  - 2025/11/06
TI  - Dynamic Linkage Between Oil Price and Alternative Energy Stocks: A VAR Analysis
BT  - Proceedings of the 3rd International Conference on Artificial Intelligence in Economics, Finance and Management (ICAIEFM 2025)
PB  - Atlantis Press
SP  - 156
EP  - 172
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-896-7_9
DO  - 10.2991/978-94-6463-896-7_9
ID  - Ali2025
ER  -