ABSTRACT Europe's renewable energy sector is expanding rapidly, driven by tighter climate targets and investors' growing preference for low‐carbon solutions. However, the combined influence of digital currencies, fintech innovation and financial market volatility on the performance of renewable energy firms remains insufficiently examined. Against this background, this study explores these connections. Methodologically, we apply wavelet quantile‐on‐quantile regression alongside wavelet quantile regression to weekly data spanning 20 July 2016 to 28 June 2023. The results indicate that digital currency has a mainly positive effect, strengthening from selective short‐horizon support to broad and significant medium‐horizon gains, while remaining positive but weaker in parts of the long horizon. Fintech shows short‐horizon mixed effects but becomes consistently positive and significant in the medium and long horizons, suggesting that fintech maturity eases financing frictions for renewables. By contrast, financial risk and oil price risk are largely detrimental, with negative effects intensifying over longer horizons. Exchange rates are mostly negative in the short and medium horizons due to higher cost and hedging pressures but turn partly positive in the long horizon as markets adapt and risk management improves. Based on these findings, policymakers should support fintech and digital‐currency financing for renewables while strengthening risk management for financial, oil‐price and exchange‐rate shocks, especially over longer horizons.
Ramzan et al. (Thu,) studied this question.