IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v250y2025ics0960148125009826.html

Rethinking renewable energy sustainability: The hidden carbon footprint of critical metals

Author

Listed:
  • Tarkun, Savaş
  • Akıncı Tok, Şerife

Abstract

As the global energy transition accelerates, the environmental sustainability of renewable energy technologies faces growing scrutiny. This study employs the external connectedness decomposition methodology of Gabauer and Gupta (2018) to analyze the pairwise dynamics between global CO2 concentrations and the prices of critical metals—aluminum, copper, nickel, and zinc—integral to renewable energy systems. Using a TVP-VAR model, we uncover that while renewable technologies promise reduced carbon emissions, the energy-intensive production of these metals significantly contributes to CO2 emissions, creating a paradox at the heart of sustainability. The findings reveal CO2 as a highly reactive and influential variable within the system, amplifying the complex interdependencies between energy transitions and material production. This research underscores the urgent need for innovative policies and technologies that decouple metal production from carbon emissions, ensuring that renewable energy transitions align with global climate goals.

Suggested Citation

  • Tarkun, Savaş & Akıncı Tok, Şerife, 2025. "Rethinking renewable energy sustainability: The hidden carbon footprint of critical metals," Renewable Energy, Elsevier, vol. 250(C).
    • Handle: RePEc:eee:renene:v:250:y:2025:i:c:s0960148125009826
    DOI: 10.1016/j.renene.2025.123320
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148125009826
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2025.123320?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. T. E. Graedel & Barbara K. Reck, 2016. "Six Years of Criticality Assessments: What Have We Learned So Far?," Journal of Industrial Ecology, Yale University, vol. 20(4), pages 692-699, August.
    2. Ahmed Elkhatat & Shaheen Al-Muhtaseb, 2024. "Climate Change and Energy Security: A Comparative Analysis of the Role of Energy Policies in Advancing Environmental Sustainability," Energies, MDPI, vol. 17(13), pages 1-31, June.
    3. Diebold, Francis X. & Yılmaz, Kamil, 2014. "On the network topology of variance decompositions: Measuring the connectedness of financial firms," Journal of Econometrics, Elsevier, vol. 182(1), pages 119-134.
    4. Koop, Gary & Pesaran, M. Hashem & Potter, Simon M., 1996. "Impulse response analysis in nonlinear multivariate models," Journal of Econometrics, Elsevier, vol. 74(1), pages 119-147, September.
    5. Zou, Chengzhang & Gao, Weizhen & Ai, Fengyi, 2025. "Strategic mineral policies for Indonesia: Enhancing global competitiveness, economic growth, and environmental sustainability through innovation and renewable energy," Renewable Energy, Elsevier, vol. 244(C).
    6. Jerry L. Holechek & Hatim M. E. Geli & Mohammed N. Sawalhah & Raul Valdez, 2022. "A Global Assessment: Can Renewable Energy Replace Fossil Fuels by 2050?," Sustainability, MDPI, vol. 14(8), pages 1-22, April.
    7. Leonard, Matthew D. & Michaelides, Efstathios E. & Michaelides, Dimitrios N., 2020. "Energy storage needs for the substitution of fossil fuel power plants with renewables," Renewable Energy, Elsevier, vol. 145(C), pages 951-962.
    8. Michael Tost & Benjamin Bayer & Michael Hitch & Stephan Lutter & Peter Moser & Susanne Feiel, 2018. "Metal Mining’s Environmental Pressures: A Review and Updated Estimates on CO 2 Emissions, Water Use, and Land Requirements," Sustainability, MDPI, vol. 10(8), pages 1-14, August.
    9. Trowell, K.A. & Goroshin, S. & Frost, D.L. & Bergthorson, J.M., 2020. "Aluminum and its role as a recyclable, sustainable carrier of renewable energy," Applied Energy, Elsevier, vol. 275(C).
    10. Geels, Frank W., 2002. "Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case-study," Research Policy, Elsevier, vol. 31(8-9), pages 1257-1274, December.
    11. Feng, Chao & Huang, Jian-Bai & Wang, Miao, 2018. "The driving forces and potential mitigation of energy-related CO2 emissions in China's metal industry," Resources Policy, Elsevier, vol. 59(C), pages 487-494.
    12. Diebold, Francis X. & Yilmaz, Kamil, 2012. "Better to give than to receive: Predictive directional measurement of volatility spillovers," International Journal of Forecasting, Elsevier, vol. 28(1), pages 57-66.
    13. Grandell, Leena & Lehtilä, Antti & Kivinen, Mari & Koljonen, Tiina & Kihlman, Susanna & Lauri, Laura S., 2016. "Role of critical metals in the future markets of clean energy technologies," Renewable Energy, Elsevier, vol. 95(C), pages 53-62.
    14. Nordhaus, William D, 1991. "A Sketch of the Economics of the Greenhouse Effect," American Economic Review, American Economic Association, vol. 81(2), pages 146-150, May.
    15. Gabauer, David & Gupta, Rangan, 2018. "On the transmission mechanism of country-specific and international economic uncertainty spillovers: Evidence from a TVP-VAR connectedness decomposition approach," Economics Letters, Elsevier, vol. 171(C), pages 63-71.
    16. Szilárd Malatyinszki & Zoltán Zéman & Botond Géza Kálmán, 2025. "Resource productivity and sustainability—a comparison of two European countries," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-20, December.
    17. Cullen, Jonathan M. & Allwood, Julian M., 2010. "The efficient use of energy: Tracing the global flow of energy from fuel to service," Energy Policy, Elsevier, vol. 38(1), pages 75-81, January.
    18. Zaghdoudi, Taha & Tissaoui, Kais & Maaloul, Mohamed Hédi & Bahou, Younès & Kammoun, Niazi, 2023. "Asymmetric connectedness between oil price, coal and renewable energy consumption in China: Evidence from Fourier NARDL approach," Energy, Elsevier, vol. 285(C).
    19. AlNemer, Hashem A. & Hkiri, Besma & Tissaoui, Kais, 2023. "Dynamic impact of renewable and non-renewable energy consumption on CO2 emission and economic growth in Saudi Arabia: Fresh evidence from wavelet coherence analysis," Renewable Energy, Elsevier, vol. 209(C), pages 340-356.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Samarakoon, S.M.R.K. & Pradhan, Rudra P., 2026. "How do return and volatility spillovers shape futures markets? Insights from index, commodity, and carbon emission futures," Renewable Energy, Elsevier, vol. 256(PD).
    2. Shi, Huai-Long & Zhou, Wei-Xing, 2022. "Factor volatility spillover and its implications on factor premia," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 80(C).
    3. Chen, Yu-Fen & Lin, Fu-Lai & Yeh, Wen-Hung, 2024. "Intra- and inter-sector spillover effects within a supply chain: Evidence from Taiwan electric motorcycle industry," Economics Letters, Elsevier, vol. 240(C).
    4. Chatziantoniou, Ioannis & Gabauer, David & Stenfors, Alexis, 2020. "From CIP-deviations to a market for risk premia: A dynamic investigation of cross-currency basis swaps," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 69(C).
    5. Nikolaos Antonakakis & Ioannis Chatziantoniou & David Gabauer, 2021. "A regional decomposition of US housing prices and volume: market dynamics and Portfolio diversification," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(2), pages 279-307, April.
    6. Gjorgji Gockov & Goran Hristovski, 2025. "Dynamic Connectedness Of Eastern European Stock Markets: An Extended Joint Connectedness Approach," Proceedings of the International Conference "Economic and Business Trends Shaping the Future" 003, Faculty of Economics-Skopje, Ss Cyril and Methodius University in Skopje.
    7. Antonakakis, Nikolaos & Gabauer, David & Gupta, Rangan, 2019. "Greek economic policy uncertainty: Does it matter for Europe? Evidence from a dynamic connectedness decomposition approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 535(C).
    8. Su, Xianfang & Zhao, Yachao, 2023. "What has the strongest connectedness with clean energy? Technology, substitutes, or raw materials," Energy Economics, Elsevier, vol. 128(C).
    9. Abakah, Emmanuel Joel Aikins & Brahim, Mariem & Carlotti, Jean-Etienne & Tiwari, Aviral Kumar & Mensi, Walid, 2024. "Extreme downside risk connectedness and portfolio hedging among the G10 currencies," International Economics, Elsevier, vol. 178(C).
    10. Antonakakis, Nikolaos & Gabauer, David & Gupta, Rangan, 2019. "International monetary policy spillovers: Evidence from a time-varying parameter vector autoregression," International Review of Financial Analysis, Elsevier, vol. 65(C).
    11. Stenfors, Alexis & Chatziantoniou, Ioannis & Gabauer, David, 2022. "Independent policy, dependent outcomes: A game of cross-country dominoes across European yield curves," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 81(C).
    12. Yi, Qing & Jiang, Yuanying, 2025. "Time-frequency spillovers between carbon, fossil fuels, and clean energy markets: New insights from the TVP-VAR framework," Energy, Elsevier, vol. 323(C).
    13. Yousaf, Imran & Hunjra, Ahmed Imran & Alshater, Muneer M. & Bouri, Elie & Li, Yanshuang, 2023. "Multidimensional connectedness among the volatility of global financial markets around the Russian-Ukrainian conflict," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    14. Corbet, Shaen & Hou, Yang (Greg) & Hu, Yang & Oxley, Les, 2021. "Volatility spillovers during market supply shocks: The case of negative oil prices," Resources Policy, Elsevier, vol. 74(C).
    15. David Gabauer, 2020. "Volatility impulse response analysis for DCC‐GARCH models: The role of volatility transmission mechanisms," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 39(5), pages 788-796, August.
    16. Umar, Zaghum & Manel, Youssef & Riaz, Yasir & Gubareva, Mariya, 2021. "Return and volatility transmission between emerging markets and US debt throughout the pandemic crisis," Pacific-Basin Finance Journal, Elsevier, vol. 67(C).
    17. Ioannis Chatziantoniou & David Gabauer & Rangan Gupta, 2021. "Integration and Risk Transmission in the Market for Crude Oil: A Time-Varying Parameter Frequency Connectedness Approach," Working Papers 202147, University of Pretoria, Department of Economics.
    18. Andrada-Félix, Julián & Fernandez-Perez, Adrian & Sosvilla-Rivero, Simón, 2020. "Distant or close cousins: Connectedness between cryptocurrencies and traditional currencies volatilities," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 67(C).
    19. Chen, Huayi & Shi, Huai-Long & Zhou, Wei-Xing, 2024. "Carbon volatility connectedness and the role of external uncertainties: Evidence from China," Journal of Commodity Markets, Elsevier, vol. 33(C).
    20. Sahoo, Satyaban, 2024. "Harmony in diversity: Exploring connectedness and portfolio strategies among crude oil, gold, traditional and sustainable index," Resources Policy, Elsevier, vol. 97(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:250:y:2025:i:c:s0960148125009826. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.