Exploring interconnectedness between climate change, renewable energy, technological innovation, and G-17 banking stock markets

This study schemes to explore novel insights from crisis risk spillovers and volatility connectedness among climate change, renewable energy, technological innovation, and G17-banking stocks. We adopt a diversified approach combining the time-varying parameter vector autoregressive (TVP-VAR) model for dynamic analysis with the Diebold-Yilmaz framework for static analysis and found that all markets have significant risk spillover and connectedness during the crisis. The ECOI index, OCEAN, and NEX are risk spillover transmitters and designed significant connectedness networks with these markets in crises. Further, France, Canada, and the US banking sectors are the main transmitters in the network during COVID-19. The US banking sector is also the primary risk transmitter during the Russia-Ukraine war. However, Japan and Korea banking stock markets consistently receive risk spillovers in the COVID-19 and Russia-Ukraine wars. This study provides significant implications for all stakeholders across the globe in these financial markets and for sustainable climate and environment.