Deconstruction of the Green Bubble during COVID-19 International Evidence

Bubbles are usually chaotic but can be predictable, provided their formation matches the log periodic power law (LPPL) with unique stylized facts. We investigated Green Bubble behaviour in stock prices of a selection stocks during COVID-19 pandemic, namely, those highest market capitalization from basket North American and European green energy or clean tech companies S&P Global Clean Energy Index. Moreover, biggest Exchange Traded Fund (TAN) by was also considered. The examined period is 31 December 2019 to 11 October 2021, which we detected 35 Bubbles. All these followed LPPL signature while calibrated through 2013 reformulated model. In addition, average drawdown emerged as four times that regular S&P-500 index (108% vs. 27%) under stressed conditions, such pandemic (stylized fact). Finally, aftermaths Bubbles, unlike bubbles, not destructive, bubbles increase economic activity infrastructure spending hence beneficial for holistic growth (described Social Hypothesis). document there benefits adapting greener more sustainable business models production. finance offers opportunities exchanges, especially stocks. As result, many businesses focusing on sustainability adopting an eco-friendly model, helps environment, attracts investors.