Understanding relative metal prices and availability: Combining physical and economic perspectives

Watson, Brett J.; Eggert, Roderick G.

doi:10.1111/jiec.13087

Title: Understanding relative metal prices and availability: Combining physical and economic perspectives

Journal Article · Mon Nov 02 23:00:00 EST 2020 · Journal of Industrial Ecology

DOI: https://doi.org/10.1111/jiec.13087 · OSTI ID:1787144

^[1]; Eggert, Roderick G. ^[2]

Institute of Social and Economic Research University of Alaska Anchorage Alaska
Division of Economics and Business Colorado School of Mines Golden Colorado

Abstract Scientists typically use physical indicators, such as average crustal abundance, and energy requirements in production, as measures of the availability of mineral resources. Economists, on the other hand, typically rely on measures such as prices, and extraction costs. This study investigates the role of crustal abundance, energy requirements, and other physical indicators in determining relative metal prices. The relationship between prices, and physical indicators is estimated statistically for a sample of 22 chemical elements over the period 1970–2013 using an economic market model. The results suggest that energy requirements in production explain 43% of observed variation in metal prices, crustal abundance 21%, and other physical indicators (toxicity, native metal status, and melting point) combine to explain 12% of the observed differences in metal prices.

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Sponsoring Organization:: USDOE

OSTI ID:: 1787144

Journal Information:: Journal of Industrial Ecology, Journal Name: Journal of Industrial Ecology Journal Issue: 4 Vol. 25; ISSN 1088-1980

Publisher:: Wiley-BlackwellCopyright Statement

Country of Publication:: United States

Language:: English

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