This study analyzes the relationship between oil prices and alternate energy prices. We contribute to the literature by updating recent data, including those concerning the rise in oil prices and severe fall periods, and further considering the carbon market. This study finds that the variation in all three indices of clean energy stocks is explained by past movements in oil prices, stock prices of high technology firms and interest rates. We especially note that there is a positive relationship because of rising oil prices and the substitution of alternate energy sources. In addition, we find that investors view the stocks of clean energy companies as they do the stocks of high technology firms.
Finally, carbon price returns are not a significant factor in stock price movements for clean energy firms. This result might be because carbon prices have been lower than oil prices. Therefore, carbon prices have not been able to create a stimulus for the switch to clean, low carbon technologies from conventional fossil fuels.