A1 Journal article (refereed)
Dependence between renewable energy related critical metal futures and producer equity markets across varying market conditions (2022)
Borg, E., Kits, I., Junttila, J., & Uddin, G. S. (2022). Dependence between renewable energy related critical metal futures and producer equity markets across varying market conditions. Renewable Energy, 190, 879-892. https://doi.org/10.1016/j.renene.2022.03.149
JYU authors or editors
Publication details
All authors or editors: Borg, Elin; Kits, Ilya; Junttila, Juha; Uddin, Gazi Salah
Journal or series: Renewable Energy
ISSN: 0960-1481
eISSN: 1879-0682
Publication year: 2022
Publication date: 06/04/2022
Volume: 190
Pages range: 879-892
Publisher: Elsevier
Publication country: United Kingdom
Publication language: English
DOI: https://doi.org/10.1016/j.renene.2022.03.149
Publication open access: Openly available
Publication channel open access: Partially open access channel
Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/80715
Abstract
We study the dependence of renewable energy production-related critical metal futures and producer equity returns, compared to the non-renewable energy (oil and natural gas) and some other globally relevant commodity markets. We find different asymmetric and symmetric dependencies in these commodity markets. The dependence is asymmetric in the most important critical metal markets, i.e., of silver, copper, and platinum. Still, surprisingly, for example, in the oil market, the relationship is symmetric, and no relationship is found in the natural gas market. Furthermore, the oil and agricultural markets have homogenous dependence structures in most market conditions, so the information transmission channels in these markets seem to be highly efficient. Still, the critical metal markets seem inefficient in this respect. The short-term speculation effects from the precious metals-related stock market segment towards critical metals futures markets are strong compared to others. We suggest that the future regulation of the precious metals producer stock market sector should be tighter to reduce speculative spillovers from this market segment to the futures markets of these metals.
Keywords: renewable energy sources; raw materials; metals; futures; capital market; price development; speculation (transfer of ownership)
Free keywords: Critical metals; Renewable energy; Commodity futures; Producer stock markets; Spillover; Tail conditions
Contributing organizations
Ministry reporting: Yes
Reporting Year: 2022
JUFO rating: 2