Analyzing Crisis Dynamics: How metal-energy Markets influence green electricity investments

The world continues to face major economic challenges due to crises that have a considerable impact on energy
consumption. Since the global energy crisis, energy commodity costs have risen, and economic slowdowns in
various regions continue to influence electricity market trends. Clean energy markets, propelled by the growing
interest of economic entities and investors, are now interconnected with several commodity markets. In this
context, energy metals play a crucial role in influencing the dynamics of the clean energy and particularly
electricity markets. This study takes a close look at the complex interconnections between clean energy indices
and the metals market, focusing on volatility dynamics. Drawing on advanced methodologies, including the
Diebold and Yilmaz method, we unveil the complex relationships that link these markets. Our results reveal
distinct patterns and interactions, highlighting the nuanced nature of the connection between clean energy
indices and metal prices. The insights revealed have significant implications for policymakers and investors
seeking to align their strategies with sustainable energy transitions and ensure financial stability. By enhancing
our understanding of the interdependencies between clean energy indices and metals markets, this research
provides valuable guidance for navigating the changing clean energy investment landscape.