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

Clean energy industries and rare Earth materials : economic and financial issues / L. Baldi, M. Peri, D. Vandone - In: Proceedings in system dynamics and innovation in food networks 2013 : proceedings of the 6th international European forum on system dynamics and innovation in food networks / [a cura di] U. Rickert, G. Schiefer. - [s.l] : Universität Bonn-ILB press, 2013. - pp. 310-324 (( Intervento presentato al 6. convegno International European forum on system dynamics and innovation in food networks tenutosi a Innsbruck nel 2013.

Clean energy industries and rare Earth materials : economic and financial issues

L. Baldi;M. Peri;D. Vandone
2013

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
Clean energy ; Rare Earth materials ; Stock prices
Settore AGR/01 - Economia ed Estimo Rurale
Settore SECS-P/11 - Economia degli Intermediari Finanziari
2013
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2434/232107
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