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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.83, # 1, 2026, pp. 20-39

Kilian and Park (2009) and elaborated on by Dhaoui et al. (2018): reasonably sound
financial systems and a reasonable energy strategy should both relate to each other. It
also serves as a basis for further studies on how developing countries can improve
their resilience in the face of increasing financial interconnectedness and global
decarbonization. Future research could expand on this approach by examining how
other climate finance indicators, such as carbon pricing instruments, green bond
indices or ESG-based investment flows, can affect the propagation of energy shocks,
and similarly, the use of time-varying parameter VAR (TVP-VAR) techniques or
Bayesian Markov models should improve the identification of structural changes and
capture long-term feedback processes between market volatility and policy actions. It
is becoming increasingly important to link energy economics with financial risk
analysis as the global economy continues to shift towards low-carbon growth, and
according to the evidence presented here, a cleaner and more diverse energy mix not
only supports sustainable development, but also serves as a strategic buffer against
financial instability, thereby linking the objectives of market sustainability and
environmental responsibility (see Bildirici & Badur, 2019; Raifu & Oshota, 2023;
Bouoiyour et al., 2017; Mokni, 2020).

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