IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v92y2024ics0301420724004057.html
   My bibliography  Save this article

Balancing supply diversification and environmental impacts: A system dynamics approach to de-risk rare earths supply chain

Author

Listed:
  • Hamed, Mosaab M.
  • Turan, Hasan Hüseyin
  • Elsawah, Sondoss

Abstract

We introduce a System Dynamics (SD) model to examine policy measures aimed at diversifying the global supply chain of rare earth elements (REEs) and reducing reliance on China. Through meticulous simulation experiments, the paper evaluates the effectiveness of individual policies and their combinations (strategies) on enhancing the Rest of the World’s (RoW) market share, minimizing environmental impacts, and meeting the burgeoning demand for Neodymium—essential for green technologies such as electric vehicles and wind turbines.

Suggested Citation

  • Hamed, Mosaab M. & Turan, Hasan Hüseyin & Elsawah, Sondoss, 2024. "Balancing supply diversification and environmental impacts: A system dynamics approach to de-risk rare earths supply chain," Resources Policy, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:jrpoli:v:92:y:2024:i:c:s0301420724004057
    DOI: 10.1016/j.resourpol.2024.105038
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420724004057
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2024.105038?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Li, Zheng-Zheng & Meng, Qin & Zhang, Linling & Lobont, Oana-Ramona & Shen, Yijuan, 2023. "How do rare earth prices respond to economic and geopolitical factors?," Resources Policy, Elsevier, vol. 85(PA).
    2. Jason C.K. Lee & Zongguo Wen, 2017. "Rare Earths from Mines to Metals: Comparing Environmental Impacts from China's Main Production Pathways," Journal of Industrial Ecology, Yale University, vol. 21(5), pages 1277-1290, October.
    3. Keilhacker, Michael L. & Minner, Stefan, 2017. "Supply chain risk management for critical commodities: A system dynamics model for the case of the rare earth elements," Resources, Conservation & Recycling, Elsevier, vol. 125(C), pages 349-362.
    4. Elisa M. Maffioli, 2023. "The local health impacts of natural resource booms," Health Economics, John Wiley & Sons, Ltd., vol. 32(2), pages 462-500, February.
    5. Schlinkert, Dominik & van den Boogaart, Karl Gerald, 2015. "The development of the market for rare earth elements: Insights from economic theory," Resources Policy, Elsevier, vol. 46(P2), pages 272-280.
    6. Salehi, Hossein & Maroufi, Samane & Mofarah, Sajjad S. & Nekouei, Rasoul Khayyam & Sahajwalla, Veena, 2023. "Recovery of rare earth metals from Ni-MH batteries: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 178(C).
    7. Bonfante, Mariele Canal & Raspini, Jéssica Prats & Fernandes, Ivan Belo & Fernandes, Suélen & Campos, Lucila M.S. & Alarcon, Orestes Estevam, 2021. "Achieving Sustainable Development Goals in rare earth magnets production: A review on state of the art and SWOT analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    8. Roelich, Katy & Dawson, David A. & Purnell, Phil & Knoeri, Christof & Revell, Ruairi & Busch, Jonathan & Steinberger, Julia K., 2014. "Assessing the dynamic material criticality of infrastructure transitions: A case of low carbon electricity," Applied Energy, Elsevier, vol. 123(C), pages 378-386.
    9. Jason C. K. Lee & Zongguo Wen, 2018. "Pathways for greening the supply of rare earth elements in China," Nature Sustainability, Nature, vol. 1(10), pages 598-605, October.
    10. Fan, John Hua & Omura, Akihiro & Roca, Eduardo, 2023. "Geopolitics and rare earth metals," European Journal of Political Economy, Elsevier, vol. 78(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gao, Wang & Wei, Jiajia & Zhang, Hongwei & Zhang, Haizhen, 2024. "The higher-order moments connectedness between rare earth and clean energy markets and the role of geopolitical risk:New insights from a TVP-VAR framework," Energy, Elsevier, vol. 305(C).
    2. Anne P. M. Velenturf, 2021. "A Framework and Baseline for the Integration of a Sustainable Circular Economy in Offshore Wind," Energies, MDPI, vol. 14(17), pages 1-41, September.
    3. Reboredo, Juan C. & Ugolini, Andrea, 2024. "The impact of uncertainty shocks on energy transition metal prices," Resources Policy, Elsevier, vol. 95(C).
    4. Thibeault, Al & Ryder, Michael & Tomomewo, Olusegun & Mann, Michael, 2023. "A review of competitive advantage theory applied to the global rare earth industry transition," Resources Policy, Elsevier, vol. 85(PA).
    5. Zhang, Hongwei & Wang, Xinyi & Tang, Jing & Guo, Yaoqi, 2022. "The impact of international rare earth trade competition on global value chain upgrading from the industrial chain perspective," Ecological Economics, Elsevier, vol. 198(C).
    6. Jingxuan Geng & Han Hao & Xin Sun & Dengye Xun & Zongwei Liu & Fuquan Zhao, 2021. "Static material flow analysis of neodymium in China," Journal of Industrial Ecology, Yale University, vol. 25(1), pages 114-124, February.
    7. Schmid, Marc, 2019. "Mitigating supply risks through involvement in rare earth projects: Japan's strategies and what the US can learn," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    8. Yang, Xiaoming & Islam, Md. Monirul & Mentel, Grzegorz & Ahmad, Ashfaq & Vasa, László, 2024. "Synergistic dynamics unveiled: Interplay between rare earth prices, clean energy innovations, and tech companies' market resilience amidst the Covid-19 pandemic and Russia-Ukraine conflict," Resources Policy, Elsevier, vol. 89(C).
    9. Aziman, Eli Syafiqah & Ismail, Aznan Fazli & Rahmat, Muhammad Abdullah, 2023. "Balancing economic growth and environmental protection: A sustainable approach to Malaysia's rare-earth industry," Resources Policy, Elsevier, vol. 83(C).
    10. Cao, Fangzhi & Su, Chi-Wei & Sun, Dian & Qin, Meng & Umar, Muhammad, 2024. "U.S. monetary policy: The pushing hands of crude oil price?," Energy Economics, Elsevier, vol. 134(C).
    11. Alexandre Tisserant & Stefan Pauliuk, 2016. "Matching global cobalt demand under different scenarios for co-production and mining attractiveness," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-19, December.
    12. Nicolas Charles & Gaétan Lefebvre & Rémy Tuloup & Audrey Carreaud & Antoine Boubault & Anne-Sophie Serrand & Maxime Picault & Virginie Piguet & Valeria Manzin & Fabien Deswarte & Julien Aupoil, 2023. "Mineral Resource Abundance: An Assessment Methodology for a Responsible Use of Mineral Raw Materials in Downstream Industries," Sustainability, MDPI, vol. 15(24), pages 1-39, December.
    13. Alexandre Tisserant & Stefan Pauliuk, 2016. "Matching global cobalt demand under different scenarios for co-production and mining attractiveness," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-19, December.
    14. Marie K. Schellens & Johanna Gisladottir, 2018. "Critical Natural Resources: Challenging the Current Discourse and Proposal for a Holistic Definition," Resources, MDPI, vol. 7(4), pages 1-28, December.
    15. Soleimani, Hamed, 2021. "A new sustainable closed-loop supply chain model for mining industry considering fixed-charged transportation: A case study in a travertine quarry," Resources Policy, Elsevier, vol. 74(C).
    16. Miller, Hugh & Dikau, Simon & Svartzman, Romain & Dees, Stéphane, 2023. "The stumbling block in ‘the race of our lives’: transition-critical materials, financial risks and the NGFS climate scenarios," LSE Research Online Documents on Economics 118095, London School of Economics and Political Science, LSE Library.
    17. Luisito Bertinelli & Stéphane Poncin & Benteng Zou, 2019. "The War of Rare Earth Elements: A Dynamic Game Approach," DEM Discussion Paper Series 19-11, Department of Economics at the University of Luxembourg.
    18. Benjamin C. McLellan & Eiji Yamasue & Tetsuo Tezuka & Glen Corder & Artem Golev & Damien Giurco, 2016. "Critical Minerals and Energy–Impacts and Limitations of Moving to Unconventional Resources," Resources, MDPI, vol. 5(2), pages 1-40, May.
    19. Elshkaki, Ayman & Graedel, T.E., 2014. "Dysprosium, the balance problem, and wind power technology," Applied Energy, Elsevier, vol. 136(C), pages 548-559.
    20. Jean-Baptiste Hasse & Capucine Nobletz, 2024. "Critical Raw Materials Index - CRMI," AMSE Working Papers 2428, Aix-Marseille School of Economics, France.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:92:y:2024:i:c:s0301420724004057. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.