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Climate Policy Commitment and Green Metal Prices: Evidence from the Paris Agreement

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  • Megha Patnaik

Abstract

Metal markets are an important but understudied aspect of the global energy transition. This paper demonstrates differential metal price responses to the Paris Agreement based on their role in the energy transition. We use a difference-in-differences design with daily price data from 2001 to 2024 for eight industrial metals. The treatment group distinguishes between traditional green metals (Copper, Aluminium, Nickel), which are established in renewable energy infrastructure, versus emerging green metals (Lithium), that are critical for storage. The control group includes non-green metals (Zinc, Lead, Tin, and Iron Ore). We find traditional green metals experienced 31% price decline relative to control metals following the Paris Agreement, while Lithium exhibited a 120% price increase.

Suggested Citation

  • Megha Patnaik, 2026. "Climate Policy Commitment and Green Metal Prices: Evidence from the Paris Agreement," CESifo Working Paper Series 12375, CESifo.
    • Handle: RePEc:ces:ceswps:_12375
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources

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