Note(s): This table presents the predictability results that indicate the hedging effectiveness of disaggregated clean energy assets against oil and climate risks. $αoil$ and $β*oil$ are the constant and Beta-adjusted coefficient of the models with oil market risk series (realized volatility of WTI and Brent prices) as the predictors. $αclm$ and $β*clm$ are the constant and Beta-adjusted coefficient of the models where the two climate risk series (climate policy uncertainty and EER) are the regressors. The hedging role is informed by the Beta-adjusted coefficients. $β*≤0$ indicates ‘no hedge’, $β*>0$ indicates ‘hedge’. “**” and “***” indicates statistical significance at the 5% and 1% significance levels. The analysis is limited to oil risk given that the monthly data for climate risks is too small (about 25 observations)

Source(s): Table by authors