Impact of Climate Risks and Global Uncertainties on Technology and Environmental Protection Stocks: A Study on China

Abstract

This study aims to examine the relationship between CUM, CPU, CU, and UCT with the FTSE China Technology Index (FTXIN410) and SZSE Environmental Protection Index (SZEPI) using ARDL and NARDL methods. To test the robustness of the model, three additional parametric methods are employed: FMOLS, DOLS, and CCR. The technology and environmental protection sectors in China are crucial for the country's sustainable economic future. Understanding the impact of global and local uncertainties on these sectors is critical for predicting sectoral trends and future market dynamics. Climate uncertainties and global uncertainties can impact investors' returns and market behaviors. In critical sectors such as technology and environmental protection, uncertainties need to be closely monitored for their implications on investment decisions and market stability. The results of the study indicate a long-term relationship between China’s climate uncertainties and global uncertainties with technology and environmental protection indices.