The impact of oil price on the clean energy metal prices: A multi-scale perspective

• Published in: Resources policy 2020-10, Vol.68, p.101730, Article 101730
• Main Authors: Shao, Liuguo, Zhang, Hua
• Format: Article
• Language: English
• Subjects: Antimony; Cadmium; Causality; Clean energy; Clean energy metals; Clean technology; Cobalt; Crude oil; Crude oil prices; Ensemble empirical mode decomposition; Green energy; Lithium; Low frequencies; Manganese; Markets; Metals; Molybdenum; Multi-scale analysis; Petroleum; Prices; Spillover effects; Tellurium
• ISSN: 0301-4207; 1873-7641
• DOI: 10.1016/j.resourpol.2020.101730

To examine the spillover effects of crude oil price and clean energy metal prices, we first explore the Granger causality between crude oil and clean energy metals prices. Then, we decompose crude oil price returns into a high frequency sequence (Oil_HF), a low frequency sequence (Oil_LF), and a trend residual (Oil_res) using the ensemble empirical mode decomposition model. Lastly, a VAR model is used to study the spillover effects of crude oil price on seven types of clean energy metal prices. The results show that crude oil price has non-linear Granger causality with lithium, cobalt, manganese, antimony, cadmium, molybdenum, and tellurium. And crude oil price has a significant positive spillover effect on seven types of clean energy metals at different time scales. Specifically, the crude oil original sequence, Oil_HF, Oil_LF, and Oil_res all have fluctuation effects on the cobalt and molybdenum markets. The spillover effects of the crude oil market on the lithium, manganese, antimony, and cadmium markets are caused by the low frequency sequence. The trend in crude oil price returns has a great effect on tellurium price, while the spillover effects of crude oil price, Oil_HF, and Oil_LF on tellurium are weak positive. •The spillover effects across the crude oil and clean energy metal markets are examined.•The empirical analysis is from a multi-scale perspective.•Crude oil price returns have spillover effects on seven types of clean energy metal prices.•The spillover effects of crude oil price returns on clean energy metal prices can be distinct in different timescale.