Does renewable energy index respond to the pandemic uncertainty? Wael Hemrit a, b, * , Noureddine Benlagha c a Department of Insurance and Risk Management, College of Economics and Administrative Sciences, Imam Mohammad Ibn Saud Islamic University (IMSIU), P.O. Box 5701, Riyadh, Saudi Arabia b GEF2A Laboratory, University of Tunis, Tunisia c Department of Finance and Economics, College of Business and Economics, Qatar University, P.O.X 2713, DOHA, Qatar article info Article history: Received 26 November 2020 Received in revised form 15 April 2021 Accepted 24 May 2021 Available online 1 June 2021 Keywords: Renewable energy index World pandemic uncertainty index Economic policy uncertainty Commodities Quantile abstract Unlike very recent studies examining the most widely traded commodities (such as; oil and gold) under an overwhelming time pressure and amid high pandemic uncertainty, the effects of world pandemic and economic policy uncertainties along with price movements in common traditional asset classes on the renewable energy index are investigated. The empirical evidence is based on daily data covering the period from January 3, 2005 to June 30, 2020. The results from quantile regression show significant positive effects of the pandemic uncertainty on renewable energy index. In contrast, the empirical findings reveal negative effect of the economic policy uncertainty on the renewable energy index, particularly, in lower quantiles. Accordingly, the results indicate that the effect of the economic policy uncertainty is reversed as the quantiles increase. The study's practical applications are unique and have policy implications; for instance, suitable policies could convert the threats of pandemic uncertainty to great opportunities for renewable energy markets and ultimately, investors not only explore the scope for hedging the oil price risk, but they can reap further portfolio diversification benefits by investing in renewable energy stocks. © 2021 Elsevier Ltd. All rights reserved. 1. Introduction As the material basis for the survival and decentralization of energy, Renewable Energy (RE) sector has always been considered as a cornerstone of all economies especially during turbulent times and the lifeblood of the national economy that restrain the negative effects of fossil energy [1 ,2]. Sun, wind, waves, rivers, tides, the heat from the earth's mantle's radioactive decay, and biomass are all abundant and constant (RE) sources. According to recent report, published by the (EIA) in 2019, records in (RE) production in the United States are displayed reaching 11.6 quadrillion British ther- mal units in 2019, rising 17.7% from 2015, largely driven by the addition of new wind and solar power plants. A case study is conducted on the Organization for Economic Cooperation and Development (OECD) countries suggests that, during 2005e2016, the proportion of (RE) consumption increased from 13.33% to 18.86% [3] and seems to capture two-thirds of the global energy investment by 2040. Today, (COVID-19) hit the world when the (RE) had started to gain significance in the energy sector [4]. Recently, some number of substantial effects have been identified with regards to the conta- gion effects of (COVID- 19) pandemic, particularly those evident in (RE) and energy sectors [5e8]. In the midst of the pain, uncertainty and fear surrounding the global pandemics, the energy sector has been no stranger to an affection by the prevailing history's deadliest pandemics [9, 10]. On one hand, when looking at the recent energy reports, the pandemic that injected a further element of uncer- tainty has exacerbated troubles in global value chains and supply chain contagion, and can slow down the transition to the (RE). Energy Information Administration- (EIA) [11] says that the pandemic uncertainty has somewhat dampened investments in all energy resources, with worrying implications for (RE) transitions. With regard to dynamic optimization model, Eryilmaz and Homans [12] try to understand how investment in wind energy depends on market and policy uncertainties. They suggest that investors perceive (RE) Investments as carrying greater risk (reflected in higher weighted average cost of capital) due to risks stemming from policy uncertainty. In the other hand, Renewables 2020 report * Corresponding author. Department of Insurance and Risk Management, College of Economics and Administrative Sciences, Imam Mohammad Ibn Saud Islamic University (IMSIU), P.O. Box 5701, Riyadh, Saudi Arabia. E-mail addresses: wael.hemrit@gmail.com (W. Hemrit), nbenlagha@qu.edu.qa (N. Benlagha). Contents lists available at ScienceDirect Renewable Energy journal homepage: www.elsevier.com/locate/renene https://doi.org/10.1016/j.renene.2021.05.130 0960-1481/© 2021 Elsevier Ltd. All rights reserved. Renewable Energy 177 (2021) 336e347