Eprint first made available on ORBilu (E-prints, Working papers and Research blog)
Strategic Considerations of Critical Mineral Depletion and Recycling Under Markovian Competition
Ruan, Weihua; Zou, Benteng
2023
 

Files


Full Text
Game_Recycle_14_01_24.pdf
Author preprint (464.48 kB)
Request a copy

All documents in ORBilu are protected by a user license.

Send to



Details



Keywords :
critical minerals, recycling; Hamilton-Jacobi- Bellman; differential game,
Abstract :
[en] With the exhaustion of non-renewable resources and the increasing importance of critical materials for the transition to clean technology, recycling is being called into action. Fulfilling demand for critical minerals involves challenges such as supply chain disruption, resource depletion and positive minimum demand, however. Under Markovian competition between an exporting cartel and an importing country, we demonstrate that (i) if both virgin and recyclable resources are abundant, multiple subgame perfect Markovian Nash equilibria arise; (ii) if the exporting cartel can choose which Nash equilibrium to follow, when the cost of exploiting the non-renewable resource is sufficiently high, stopping the supply of virgin resource to the market is the Nash equilibrium; (iii) the consequence of this choice is that when the recyclable resource is exhausted, there is no Nash equilibrium anymore, although there remains virgin resource to exploit.
Disciplines :
Quantitative methods in economics & management
Author, co-author :
Ruan, Weihua
Zou, Benteng  ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Economics and Management (DEM)
Language :
English
Title :
Strategic Considerations of Critical Mineral Depletion and Recycling Under Markovian Competition
Publication date :
May 2023
Number of pages :
36
Focus Area :
Sustainable Development
Available on ORBilu :
since 17 May 2023

Statistics


Number of views
89 (6 by Unilu)
Number of downloads
2 (0 by Unilu)

Bibliography


Similar publications



Contact ORBilu