The Relationship Between Renewable Energy Consumption, Oil Price, Gold Price, Exchange Rate, and Stock Market
The Relationship Between Renewable Energy Consumption, Oil Price, Gold Price, Exchange Rate, and Stock Market

Author(s): Muhammed Fatih Yürük
Subject(s): Energy and Environmental Studies, International relations/trade, Financial Markets
Published by: Özgür Yayın Dağıtım Ltd. Şti.
Keywords: Renewable Energy; Oil Price; Gold Price; Exchange Rate; Stock Market;
Summary/Abstract: In this study, the relationship between WTI crude oil price and the variables in which it interacts was analyzed. These variables are; Gold, Dollar Index, S&P 500 Energy, DJ Oil & Gas, and Renewable Energy Consumption. Among these variables, it has been examined whether the increase in Renewable Energy Consumption, in particular, affects crude oil prices. In the study, unit root tests of the series were made and the series was made stationary. Afterward, the appropriate number of delays was determined and the VAR model was created. After it was seen that the model met the assumptions, the impulse-response functions of the VAR model were calculated. The results of each variable were interpreted with variance decomposition analysis. The Granger causality test was performed for the status of the relationship between the variables. According to the Granger causality test results; Changes DJ in Oil & Gas index affect crude oil, changes in S&P 500 Energy and DJ Oil & Gas indices affect crude oil variable, while changes in DJ Oil & Gas and S&P 500 Energy Index affect the renewable energy consumption variable. In particular, no granger causality was found between the renewable energy consumption of crude oil and between renewable energy consumption and crude oil prices.

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