Green bubbles: a four-stage paradigm for detection and propagation

Fuente: arXiv
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Hauptverfasser: Vriz, Gian Luca, Grossi, Luigi
Format: Preprint
Veröffentlicht: 2024
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author Vriz, Gian Luca
Grossi, Luigi
author_facet Vriz, Gian Luca
Grossi, Luigi
contents Climate change has emerged as a significant global concern, attracting increasing attention worldwide. While green bubbles may be examined through a social bubble hypothesis, it is essential not to neglect a Climate Minsky moment triggered by sudden asset price changes. The significant increase in green investments highlights the urgent need for a comprehensive understanding of these market dynamics. Therefore, the current paper introduces a novel paradigm for studying such phenomena. Focusing on the renewable energy sector, Statistical Process Control (SPC) methodologies are employed to identify green bubbles within time series data. Furthermore, search volume indexes and social factors are incorporated into established econometric models to reveal potential implications for the financial system. Inspired by Joseph Schumpeter's perspectives on business cycles, this study recognizes green bubbles as a necessary evil for facilitating a successful transition towards a more sustainable future.
format Preprint
id arxiv_https___arxiv_org_abs_2410_06564
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Green bubbles: a four-stage paradigm for detection and propagation
Vriz, Gian Luca
Grossi, Luigi
Econometrics
Applications
Climate change has emerged as a significant global concern, attracting increasing attention worldwide. While green bubbles may be examined through a social bubble hypothesis, it is essential not to neglect a Climate Minsky moment triggered by sudden asset price changes. The significant increase in green investments highlights the urgent need for a comprehensive understanding of these market dynamics. Therefore, the current paper introduces a novel paradigm for studying such phenomena. Focusing on the renewable energy sector, Statistical Process Control (SPC) methodologies are employed to identify green bubbles within time series data. Furthermore, search volume indexes and social factors are incorporated into established econometric models to reveal potential implications for the financial system. Inspired by Joseph Schumpeter's perspectives on business cycles, this study recognizes green bubbles as a necessary evil for facilitating a successful transition towards a more sustainable future.
title Green bubbles: a four-stage paradigm for detection and propagation
topic Econometrics
Applications
url https://arxiv.org/abs/2410.06564