The Role of Financial Markets in Hydrogen Adoption

This paper empirically investigates the role of financial markets (FM) and their development in promoting hydrogen adoption as a component of green and just transition. Hydrogen can play a significant role in the energy transition, especially for sectors that are otherwise hard to decarbonize. Utilizing a twofold methodology, we demonstrate that well‐developed FM significantly drive hydrogen production. Moreover, the findings highlight the connection between individual hydrogen Exchange Traded Funds and high‐tech stocks, while actual hydrogen pricing is connected to oil and gas. Policy implications highlight the need for clear regulatory frameworks, communication and blended financing support for hydrogen adoption.