Clean Energy Industries and rare Earth Materials: Economic and Financial Issues

Lucia Baldi, Massimo Peri and Daniela Vandone

No 164750, 2013 International European Forum, February 18-22, 2013, Innsbruck-Igls, Austria from International European Forum on System Dynamics and Innovation in Food Networks

Abstract: In the last few years Rare Earth Materials (REMs) prices have experienced a strong increase, due to geopolitical policies and sustainability issues. Provided that these materials at risk of supply disruptions are largely employed in the development of new technologies - such as clean energy industries - financial markets may already have included these concerns into clean energy companies evaluation. We use a multifactor market model for the period January 2006-September 2012 to analyse the impact of REMs price changes – specifically Dysprosium and Neodymium - to six clean energy indexes (NYSE-BNEF) tracking the world’s most active quoted companies in the clean energy sector. Results show that during period of price increase there is a negative relation between REMs price changes and the stock market performance of clean energy indexes, specifically wind. The European clean energy index is also negatively affected and this may be relevant to policy makers considering that Europe is putting in place some relevant policy actions to support the development of the clean energy sector.

Keywords: Agribusiness; Agricultural and Food Policy; Financial Economics; Food Consumption/Nutrition/Food Safety; Production Economics; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 16
Date: 2013-09
New Economics Papers: this item is included in nep-agr and nep-ene
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iefi13:164750

DOI: 10.22004/ag.econ.164750

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