RELATIONSHIP BETWEEN OIL AND RENEWABLE ENERGIES PRICES

Abstract

Large companies in the oil sector have been expanding their activities to the renewable energy segment. The objective of this work is to identify patterns and relationships - in the 10 last years - between oil price and prices of the following renewable energies: wind, hydroelectric, solar, and bioenergy. The analysis of standards and the identification of relationships help decision-makers to define strategies and increase operation efficiency. Besides, it contributes to the development of models capable of predicting, interpreting, and testing hypotheses about the data. The main analytical and data treatment methodology used in this work comprises statistical tests involving Cross-Correlation and Granger Causality. The Cross-Correlation Test showed a strong negative correlation between oil and wind energy prices, and the Granger’s test did not show causality between them. New studies comparing oil and renewable energy prices by country and covering a longer period can bring interesting results.