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Insight into clean energy market’s role in the connectedness between joint-consumption metals

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  • Zhang, Hongwei
  • Li, Zongzhen
  • Song, Huiling
  • Gao, Wang

Abstract

The characteristic of joint consumption creates complex linkage between metal markets, which helps provide new insights into the energy-metal nexus relationship. To this end, this paper analyzes the price spillover effects between clean energy metals with joint consumption properties and further captures clean energy market's role in this dynamic connectedness. The results show that: (1) There are significant spillover effects within the clean energy metal markets, mainly dominant by short-term factors. The price fluctuation risk in the wind energy metal markets is more easily transmitted than the solar energy metal markets. (2) Copper and Tellurium markets are the main sources of risk in the spillover network of solar energy metal markets, while Copper and Aluminum act as the centers of risk transmission in the spillover network of wind energy metal markets. (3) Clean energy markets significantly impact the spillovers of metal markets, and exhibit non-linear movements, altering the spillover roles of some metal markets in the spillover network. Our findings reveal the system-wide price fluctuation patterns in clean energy metal markets, helping provide targeted recommendations in the risk management of energy-metal nexus system.

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  • Zhang, Hongwei & Li, Zongzhen & Song, Huiling & Gao, Wang, 2024. "Insight into clean energy market’s role in the connectedness between joint-consumption metals," Energy, Elsevier, vol. 302(C).
    • Handle: RePEc:eee:energy:v:302:y:2024:i:c:s0360544224016049
    DOI: 10.1016/j.energy.2024.131831
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