The Role of Monetary Policy in Renewable Energy Stock Returns: Evidence From Renewable Energy Producers in Türkiye

The current study examines the effects of monetary policy changes on energy stock prices of renewable energy producers in Türkiye, whose macroeconomy is heavily dependent on foreign energy demand and experienced radical changes in monetary policy over the last decades. Results report long‐term interactions between renewable energy stock prices and monetary policy. It was found that renewable energy stock prices negatively respond to the Central Bank’s monetary policy choices. Results of the current study imply that renewable energy firms need to achieve sustainable business performance, especially during the contractionary monetary policy of the Central Banks.