How do weather risks in Canada and the United States affect global commodity prices? Implications for the decarbonisation process

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Publication date
2023-11
Author
Lau, C.K.
Cai, Y.
Gozgor, Giray
Keyword
Decarbonised supply chains
Weather risks
Commodity markets uncertainties
Disasters
Market price changes
Rights
© The Author(s) 2023. This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.
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Abstract
Given that the probability of extreme weather has been dramatically increasing, this study contributes to the existing literature by bridging the relation between weather risks and global commodity prices with a secondary dataset (e.g., weather risks of Canada and the United States, agricultural raw materials price, gold price, and crude oil price). The results from the vector autoregression model and impulse response functions show that rising weather risks increase the price of agricultural raw materials and gold. However, the negative impact of weather risks on the crude oil price is found. Finally, the paper discusses the findings' potential implications (e.g., developing decarbonised supply chains) for decreasing weather risks' effects on commodity market uncertainties.
URI
http://hdl.handle.net/10454/19826
Version
Published version
Citation
Lau CK, Cai Y and Gozgor G (2023) How do weather risks in Canada and the United States affect global commodity prices? Implications for the decarbonisation process. Annals of Operations Research. Accepted for Publication.
Link to Version of Record
https://doi.org/10.1007/s10479-023-05672-0
Type
Article
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