The Dynamic Nexus Between the US Business Conditions and Clean Energy Stock Performance

Clean energy bolsters economic resilience but remains sensitive to adverse macroeconomic conditions. This paper employs a quantile-on-quantile connectedness approach to examine the links between US business conditions (ADS) and clean energy stock prices (ECO). The results reveal strong direct and inverse relationships, particularly at the tail quantiles. ECO consistently functions as a net shock receiver, highlighting its vulnerability to both extreme downturns and upswings in business activity.