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Quantifying Demand Shocks in the Green and Digital Transition

Andrea Bastianin, Luca Rossini, Marco Zoso

arXiv 26 Jun 2026 · Econometrics

arXiv:2606.27842 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We use web search data to construct monthly indexes of derived demand for cobalt, copper, and nickel, which are key inputs in technologies driving the energy and digital transitions. We incorporate these indexes into Structural Vector Autoregressive (SVAR) models of global metal markets and identify structural shocks using zero, sign, and magnitude restrictions. This approach disentangles supply shocks from several demand-side drivers of metal prices and isolates a transition demand (TD) shock linked to the diffusion of metal-intensive technologies. We find that TD shocks generate persistent price effects, especially for copper and nickel, whereas supply and metal-specific demand shocks are more immediate and less persistent.

Citation extraction

56
references
100
in-text mentions
56
distinct cited
2
self-citations
8,151
main-text words

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Boer, Lukas and Pescatori, Andrea and Stuermer, Martin (2024) Energy Transition Metals: Bottleneck for Net-Zero Emissions?1.00063100%
2Baumeister, Christiane and Hamilton, James D (2019) Structural interpretation of vector autoregressions with incomplete identification: Revisiting the role of oil supply and demand…1.00053100%
3Christiane Baumeister and Guillermo Verduzco-Bustos and Franziska Oh… (2022) Pandemic, war, recession: Drivers of aluminum and copper prices1.00053100%
4Møller, Stig Vinther and Pedersen, Thomas and Montes Schütte, Erik C… (2024) Search and Predictability of Prices in the Housing Market0.87462100%
5Daniel Borup and Erik Christian Montes Schütte (2022) In Search of a Job: Forecasting Employment Growth Using Google Trends0.81142100%
6Kilian, Lutz and Murphy, Daniel P (2012) Why Agnostic Sign Restrictions Are Not Enough: Understanding the Dynamics of Oil Market VAR Models0.81142100%
7Hamilton, James D (2018) Why you should never use the Hodrick-Prescott filter0.7817271%
8Laurent Ferrara and Anna Simoni (2023) When are Google Data Useful to Nowcast GDP? An Approach via Preselection and Shrinkage0.73732100%
9Choi, Hyunyoung and Varian, Hal (2012) Predicting the present with Google Trends0.73732100%
10D’Amuri, Francesco and Marcucci, Juri (2017) The predictive power of Google searches in forecasting US unemployment0.64422100%

Showing the top 10 of 56 scored citations.