The Dynamic Impact of Covid-19 Pandemic on Environment-friendly Energy Industry

Abstract

Most of the current research on green energy and the pandemic focuses on how green investments changed after the epidemic and how the pandemic affected the local economy. The correlation between the rate of return on green energy and the number of confirmed cases in China and the rest of the globe is the main topic of this research. The daily cumulative confirmed Covid-19 cases in China and the rest of the world, and daily price of green energy are used as time series variables. They are daily data from the end of January 2020 to the end of July 2022. The study's findings largely show how the price of green energy has changed in relation to the pandemic's progression. A VAR (12) model makes a forecast on how the pandemic, which is expected to become stationary after the tenth period, would affect the price of green energy. The ARMA-GARCH model's findings demonstrate a statistically significant negative correlation between the price of green energy and the number of verified cases. In other words, compared to the pandemic, the price of green energy is lower. The pandemic has had no impact on the rate of return of green energy throughout the specified period, though.