critical mineral,; recycling, import and export,; differential game.
Abstract :
[en] Critical minerals are essential to the success of the transition to clean and sustainable
technology. However, critical minerals face supply chain disruption, resource depletion, a
lack of recycling technology and minimum demand, which may be increasing over time,
at least in the short run. This paper models critical mineral extraction and recycling
strategies under international cooperation and open-loop commitment competition. We
show that (1) recycling technology can only partially reduce dependence on the virgin
supply of critical minerals, given that recycling essentially relies on the accumulated supply
from depletable resources; (2) the social planner's Markovian optimal market supply is
based on either virgin or recyclable resources, with the more socially desirable being used
first; (3) if the recyclable resource is exhausted, the social planner does not have an optimal
choice regarding how to exploit the remaining virgin resource; but (4) under open-loop
commitment, the two resources can coexist until the virgin resource is exhausted.
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 :
Critical Mineral Depletion and Recycling: From the Perspective of the Cooperation and Open-Loop Competition
