Publication

This paper examines the drivers that led to the soar and subsequent fall in alternative energy stock prices in the mid-2000s. More specifically, it uses 2004-2013 alternative energy stock indices to investigate whether the dramatic price changes were driven by a speculative price bubble or whether they were merely a manifestation of rising crude oil prices and bullish market conditions. The authors conclude that it is unlikely that the severe crash of alternative energy stock prices in 2008 resulted from the bursting of a market bubble, although there is evidence of at least some irrational exuberance among investors.