Clean energy industries and rare earth materials: Economic and financial issues
AbstractIn the last few years, rare earth materials (REM) prices have experienced a strong increase due to geopolitical and sustainability issues. Financial markets could already have factored in concerns about shortages of REM supplies into clean energy companies’ valuations. We use a multifactor market model for the period January 2006 to September 2012 to analyze the impact of REM price trends – specifically dysprosium and neodymium – on six clean energy indices (NYSE–BNEF) tracking the world's most important companies in the clean energy sector. The results show that during period of price increase, there is a negative relationships between REM price changes and the stock market performance of some clean energy indices. The European clean energy index is also negatively affected, and this effect could be relevant to policy makers, considering that Europe is implementing some relevant policy actions to support the development of the clean energy industry.
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Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 66 (2014)
Issue (Month): C ()
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Web page: http://www.elsevier.com/locate/enpol
Clean energy industry; Rare earth materials; Stock prices;
Other versions of this item:
- Lucia BALDI & Massimo PERI & Daniela VANDONE, 2013. "Clean Energy Industries and Rare Earth Materials: Economic and Financial Issues," Departmental Working Papers 2013-07, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
- Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
- C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
- E39 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Other
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