The Russia-Ukraine Outbreak and the Value of Renewable Energy

The paper studies the role of renewable energy in stock market reaction to Russian-Ukraine crisis, which not only devastates the global economy but also brings to the forefront the importance of developing alternative energy sources such as renewables to reduce energy dependence on Russia. The examination of equity prices reveals that European firms with larger share of ex-ante purchased or produced renewables experience less stock return declines in the Russian-Ukraine outbreak period. Further analysis shows that the out performance of firms with greater pre-crisis renewables is manifested more in firms with greater financial resources before the outbreak. Whilst the promotion of renewable is not without tensions, the article highlights the aspect of renewables in weathering the storms from geopolitical conflicts