The impact of investor attention during COVID-19 on investment in clean energy versus fossil fuel firms

Daoxia Wan, Rui Xue, Martina Linnenluecke, Jinfang Tian, Yuli Shan*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

69 Citations (Scopus)
19 Downloads (Pure)


The outbreak of the COVID-19 pandemic has had significant negative impacts on financial markets, including energy stock markets. However, recently proposed and implemented green recovery plans may mean that clean energy firms demonstrate better performance than fossil fuel firms after the pandemic. As more voices call for the update of clean energy, theory on investor attention suggests investors will pay more attention to the potential to invest in clean energy stocks. Using a sample period of eight weeks before and during the pandemic, we find that the negative impact of the outbreak on both clean energy and fossil fuel firms is more significant for fossil fuel firms. Our results further show that during the pandemic there have been improved returns for clean energy firms as a consequence of investor attention, but not for fossil fuel firms. Our findings provide empirical evidence for the advantages of green recovery schemes in influencing financial markets, especially for clean energy stocks. These results suggest there are benefits for further promotion and implementation of green recovery stimulus measures post-pandemic.

Original languageEnglish
Article number101955
Pages (from-to)1-6
Number of pages6
JournalFinance Research Letters
Early online date2 Feb 2021
Publication statusPublished - Nov 2021

Bibliographical note

©2021 The Author(s). Published by Elsevier Inc. Version archived for private and non-commercial use with the permission of the author/s and according to publisher conditions. For further rights please contact the publisher.


  • COVID-19
  • Clean energy
  • Fossil fuel
  • Green recovery
  • Investor attention


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