Climate and Green Technological Shocks in the U.S. Energy and Financial Sectors: Insights From Mixed-Frequency Profitability Analysis

This study examines how climate and green technological shocks influence profitability in the U.S. energy and financial sectors. Using a mixed-frequency dataset (2000Q1–2024Q1), we combine daily climate risk indices with quarterly sectoral profits and green patent activity within an ADL-MIDAS framework. Results show that both physical and transition climate risks significantly predict profits, with stronger effects when green innovation is included. Forecast evaluations using the Clark–West test confirms superior predictive performance of green-augmented models. The findings highlight the joint importance of climate resilience and technological progress for sectoral profitability and policy design.