Extreme Connectedness among Energy Transition Metals and Commodity Markets
Extreme Connectedness among Energy Transition Metals and Commodity Markets
| Authors: | Andrea Bastianin Chiara Casoli Evzen Kocenda Xiao Li |
|---|---|
| Published in: | IES Working Papers 2/2026 |
| Keywords: | Raw materials; Energy transition; Quantile Connectedness; Spillover e!ects; Commodity Markets |
| JEL codes: | C32; C58; Q02; Q41; Q43; Q48 |
| Suggested citation: | Bastianin A., Casoli C., Kocenda E., Xiao Lic (2026): " Extreme Connectedness among Energy Transition Metals and Commodity Markets " IES Working Papers 2/2026. IES FSV. Charles University. |
| Abstract: | The global energy transition is reshaping commodity demand, yet its implications for commodity risk transmission remain unclear. We analyze connectedness among Energy Transition Metals (ETMs) – a subset of metals that are key inputs in clean energy technologies – energy commodities, and industrial metals using a Quantile Factor VAR framework. We document strong state dependence: spillovers are substantially larger in the tails of the return distribution than at the median. While crude oil remains influential, its dominance weakens post-Covid as ETMs, particularly base ETMs, gain centrality. A complementary event-study shows ETM-related policy announcements amplify spillovers in extreme regimes, indicating structural reconfiguration and systemic implications. |
| Download: | wp_2026_02_bastianin, casoli, kocenda, xiao li |
