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Understanding relative metal prices and availability: Combining physical and economic perspectives
Author(s) -
Watson Brett J.,
Eggert Roderick G.
Publication year - 2021
Publication title -
journal of industrial ecology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.377
H-Index - 102
eISSN - 1530-9290
pISSN - 1088-1980
DOI - 10.1111/jiec.13087
Subject(s) - abundance (ecology) , production (economics) , sample (material) , natural resource economics , relative species abundance , economics , environmental science , point (geometry) , econometrics , monetary economics , ecology , macroeconomics , chemistry , mathematics , biology , geometry , chromatography
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.