effect of climate action on renewable energy stock price

The un sdg 13 recommends that effective climate action is imperative for attaining target climate change reduction. similarly, effective investment in renewable energy is a vital strategy for curbing climate change. this paper evaluates the effect of climate action on renewable energy stock price. it adopts a short review and brief quantitative approach. data on climate action index and renewable energy stock price were retrieved from the msci and fusion media respectively. the simple ols results indicate that the climate action index has a negative effect on the renewable energy stock (within the ambits of this study). the paper offers some implication for clean energy stock investors who may want to sell short or long during the time of reduced prices and to make a hedging profit when the prices rise. the findings provide an agenda for further research to expand future research data to other climate action indexes and renewable energy stocks.