Addressing COP21 using a stock and oil market integration index

• Main Authors: Batten, Jonathan A., Kinateder, Harald, Szilagyi, Peter G., Wagner, Niklas F.
• Format: Article
• Published: Elsevier Ltd. 2018
• Subjects: HB Economic Theory
• Online Access: http://repo.uum.edu.my/24712/; http://doi.org/10.1016/j.enpol.2018.01.048
• Institution: Universiti Utara Malaysia

COP21 implementation should lead to a decline in the future demand for fossil fuels.One key implication for investors is how to manage this risk. We construct a monthly stock and oil market integration index and demonstrate that oil investors can offset adverse oil price risk by holding diversified...