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The primary objective of this study is to examine the financial interaction between artificial intelligence (AI) indices and the carbon market and to reveal how shock transmission between the two markets varies according to market conditions. In this regard, the study analyzes the dynamics between two carbon indices, ICE EUA Carbon Futures Excess Return Index (ICEEUA) and S however, this role exhibits significant asymmetry, with transmission intensifying during extreme market conditions. Put differently, in certain periods characterized by heightened technological momentum, the AI indices also generate a meaningful feedback effect toward the carbon market. These interactions intensify in extreme quantile regimes, indicating stronger market integration during periods of stress. The results demonstrate that the financial structure of carbon pricing and the AI sector is becoming increasingly intertwined, and that sustainability policies need to be reconsidered in a manner that appropriately accounts for developments in technology markets.
Nehir Balcı (Tue,) studied this question.