The effects of geopolitical risk on investor attention towards renewable energy: Evidence from the global context and Turkey
Maria-Eugenia Sanin  1@  
1 : Université Paris-Saclay
Université Paris-Saclay,Sorbonne Universités

This study is the first to investigate the interaction between geopolitical risks and investor attention towards renewable energy. Firstly, we do this by using the Geopolitical Risk Index (GPR) and World Uncertainty Index (WUI) alongside investor attention data on renewable energy. Secondly, we construct investor attention using the Google Search Volume Index (GSVI) with the keyword "renewable energy," a widely recognized indicator in financial market research. Finally, we analyze the impact of geopolitical risks— such as the COVID-19 pandemic, the war in Ukraine, and the war after October 7th, 2023— on global and Turkish investor's attention. Our focus on Turkey is justified by the fact that it relies heavily on foreign energy (notably natural gas imports from Russia) and holds a strategic position in connecting Europe to the Middle-East. It therefore presents a unique case to assess how recent geopolitical uncertainties influence investor's behavior, especially in light of the 2017 National Energy Policy that encourages renewable energy adoption in Turkey. Our findings offer new insights into the effects of geopolitical risks on investor attention to renewable energy, both globally and in Turkey, contributing to the limited research in this area.


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