Risk contagion among renewable energy, fossil energy and agricultural commodity markets: Insights from dynamic networks

Yujia Jin, Ailian Zhang and Bai Liu

Economic Analysis and Policy, 2025, vol. 87, issue C, 1361-1378

Abstract: Although global energy transition fundamentally reshapes interdependencies between fossil energy-renewable energy-agricultural commodity (FRA) markets, the intricate risk contagion within FRA market system remains underexplored. Using dynamic spillover and risk network analysis, this study investigates risk contagion within the FRA system comparing the representative markets in China and the US, and further identifies the impact of extreme events. The findings reveal that agricultural commodity market acts as the dominant bridge for risk spillover between fossil and renewable energy markets due to bioenergy demand and cost linkages. Extreme events dynamically change risk transmission networks, exhibiting pronounced market heterogeneity. Structural and institutional differences of Chinese and the US markets form fundamentally distinct risk propagation pathways. China’s renewable energy shifts from risk transmitter to recipient during trade conflicts, while the US fossil energy amplifies risk absorption during supply disruptions. These findings improve risk supervision for policymakers and investors during energy transition.

Keywords: Energy market; Agricultural commodity; Risk network; Renewable energy (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0313592625002991
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:87:y:2025:i:c:p:1361-1378

DOI: 10.1016/j.eap.2025.07.024

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().