ABSTRACT
This article examines the cyclical comovements of venture capital investments in the energy sector and key macroeconomic variables. In particular, we decompose the cyclical component of two venture capital investment series (clean technology and industrial/energy) and several macroeconomic factors including oil prices. A number of important cyclical relationships are documented such as increases in crude oil prices tend to signal future venture capital investment in both energy-related sectors and these investments tend to move concurrently with movements in the overall economy
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
1 Ewing, Sari, and Soytas (Citation2007) discussed the recent history and trends in renewable energy in the United States.
2 Fiorito and Kollintzas (Citation1994) provided more details on the use and interpretation of the correlation coefficient.