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Influencing factors and critical path of inter-sector embodied heavy rare earth consumption in China

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  • Zhang, Hui-min
  • Feng, Tian-tian
  • Yang, Yi-sheng

Abstract

Heavy rare earth (HRE) has become a necessary metal material in the field of high-tech and new energy. China is rich in rare earth, but years of mining resulted in over-exploitation of HRE. And HRE's resource advantage position has been weakened gradually. Therefore, with the increasing demand for HRE, it is of great significance to understand the flow of HRE in sectors in China. In this article, the research model combines the input-output model and complex network model. From the perspective of sector supply chain, the network structure of embodied HRE flow network is analyzed, and the key sectors are identified. Subsequently, the impact of sectors' network roles on the consumption of embodied HRE is quantified based on panel regression model. Furthermore, structural path analysis is used to identify the critical path of the embodied HRE consumption. The main results are as follow: firstly, policy implication and supply-side disruption can cause fluctuation in embodied HRE consumption. But due to the rapid development of new energy industry, demand-side driving effect will be more and more prominent. Secondly, each sector plays a different role in the trading of embodied HRE. For example, metal mining and smelting processing is an important supply and consume sector and the consumption of HRE is largely affected by the sectors' network roles. Finally, the critical path of embodied HRE consumption shows that the main supply path is non-ferrous metal ore mining→ non-ferrous metal smelting and processing→ related electric machinery and metalworking machinery manufacturing/cultural, athletic and arts products manufacturing. However, with the development of new energy, the key supply chain may change. Therefore, we should pay attention to the role of the above key sectors and guide HRE to flow to key sectors of high-end applications. It is important to continuously improve the technology innovation of high-end application fields of HRE, promote resource utilization, and ensure the safety of key supply chains.

Suggested Citation

  • Zhang, Hui-min & Feng, Tian-tian & Yang, Yi-sheng, 2022. "Influencing factors and critical path of inter-sector embodied heavy rare earth consumption in China," Resources Policy, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:jrpoli:v:75:y:2022:i:c:s0301420721005006
    DOI: 10.1016/j.resourpol.2021.102492
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