1. Climate warming, renewable energy consumption and rare earth market: Evidence from the United States.
- Author
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Ding, Qian, Huang, Jianbai, Chen, Jinyu, and Luo, Xianfeng
- Subjects
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GLOBAL warming , *ENERGY consumption , *RENEWABLE energy sources , *COVID-19 pandemic , *MARKET timing , *RARE earth metals - Abstract
This study investigates the time-varying interactions among climate warming, renewable energy consumption (REC) and rare earth market using TVP-VAR-SV model. We focus on the stock performance in the rare earth financial market. Our empirical results show that the effects of climate warming and REC on rare earth market changes over time and increases significantly during the COVID-19 pandemic. The REC has short-term positive impact on rare earth market, and the positive impact of climate warming on the rare earth market has a time lag effect. In the long term, climate warming has a significant promotion effect on REC, especially during major events. The short-term positive impact of REC on the rare earth market is prominent after the signing of the Paris Agreement (PA), while its impact shows counter-cyclical fluctuations during the COVID-19 pandemic. The effect of disaggregated REC on rare earth market is obviously heterogeneous. Solar and wind energy consumption are the most important reasons for changes in rare earth market. • The effect of climate warming on rare earth stock market is time-varying. • Climate warming promotes renewable energy consumption after the Paris Agreement. • Renewable energy consumption has a significant impact on rare earth stock market. • The positive effect of climate warming on rare earth stock market has a time lag effect. • Rare earth stock market is most sensitive to solar and wind energy consumption. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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