Dynamic Market Power in an Exhaustible Resource Industry. The Case of Rare Earth Elements

Pothen, Frank

doi:10.2139/ssrn.2385991

Cited by 9 publications

(7 citation statements)

References 32 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Optimistic scenarios as in Pothen (2013Pothen ( , 2014 appear less likely. If China is able to restrict exports using the licensing system, it can retain its influence on rare earth markets.…”

Section: New Non-chinese Suppliersmentioning

confidence: 96%

See 1 more Smart Citation

A Political Economy of China's Export Restrictions on Rare Earth Elements

Pothen

Fink

2015

SSRN Journal

Self Cite

View full text Add to dashboard Cite

Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. A Political Economy of China's Export Restrictions on Rare Earth ElementsFrank Pothen * † Kilian Fink ‡ April 20, 2015 AbstractWe investigate why governments restrict exports of exotic raw materials taking rare earth elements as a case study. Trade restrictions on exotic materials do not have immediate macroeconomic effects. Relocating rare earth intensive industries is found to be the main reason behind China's export barriers. They are part of a more extensive strategy aiming at creating comparative advantages in these sectors and at overcoming path dependencies. Moreover, export barriers serve as a second-best instrument to reduce pollution and to slow down the depletion of exhaustible resources.Growing domestic rare earth consumption renders those increasingly ineffective. Rising reliance on mine-site regulation indicates that this fact is taken into account. Rare earth extraction is dominated by a few large companies; the demand side is dispersed.That speaks against successful lobbying for export restrictions. It appears as if the export barriers are set up to compensate mining firms.JEL Classifications: Q37,Q38,D78, P26

show abstract

Section: New Non-chinese Suppliersmentioning

confidence: 96%

“…The entry of non-Chinese suppliers could deteriorate China's market power (Pothen, 2013(Pothen, , 2014.…”

Section: Supplymentioning

confidence: 99%

A Political Economy of China's Export Restrictions on Rare Earth Elements

Pothen

Fink

2015

SSRN Journal

Self Cite

View full text Add to dashboard Cite

show abstract

“…With the beginning of the WTO trial, three rather than two quota announcements were issued each year, which were favourable for global REEs users and non-Chinese REEs suppliers (Mueller et al 2014). Pothen (2013) estimates the impact of REEs export restrictions on the Chinese market power and corresponding welfare effects by applying a dynamic partial equilibrium model. The business-as-usual simulation, which assumes export restrictions at the level of 2013, showed that China would be able to utilize its market power to affect prices until 2019.…”

Section: Impact Of Regulatory Adjustment On Pricing and Market Powermentioning

confidence: 99%

“…China's welfare gains are 1.4 billion US $ in this scenario, while the rest of the world would incur welfare losses of 1.96 US$. The end of Chinese market power in this scenario would be the market entry of REEs suppliers outside of the PRC (Pothen 2013). The development of new mines, the re-opening of old mines like the Mountain Pass mine, which can be economically exploited again due to high REEs prices, research and development efforts to find substitutes and recycling possibilities and the trade diversification of REEs suppliers were all triggered by the Chinese adjustment of the trade regime (Seaman 2012).…”

Section: Impact Of Regulatory Adjustment On Pricing and Market Powermentioning

confidence: 99%

Changes to the Regulatory Framework of the Chinese Rare Earth Industry after the Global Financial Crisis

Howanietz¹

2017

cjas

View full text Add to dashboard Cite

In the wake of the Global Financial Crisis, the Chinese government radically adjusted the regulatory framework of the domestic Rare Earth Elements (REEs) sector. This article investigates the reasons for regulatory adjustments and the impact on China's market power. The analysis of long-term REEs price and production trends illustrates four reasons for regulatory adjustments: the China discount, the need for industrial upgrading, growing domestic REEs demand and severe environmental pollution. The analysis of the effects of regulations shows that the restrictive trade regime has increased China's market power and ability to affect prices, which led to a redistribution of global welfare in favour of China. However, this market power is only temporary due to foreign countermeasures such as WTO-based allegations.

show abstract

“…In this regard, some scholars have classified both Scandium and yttrium into the heavy element category. [11][12][13] On the other hand, some others have highlighted that the third category RE can be classified as medium rare earth (MREEs) which refers to the elements of Sm, Eu, and Gd. [14][15][16] It is noteworthy that there are six different ores mineral from industry productions which include bastnasite [(Ce,La)(CO 3 )F], monazite [(Ce,La)PO 4 )], xenotime (YPO 4 ), loparite[(Ce,Na,Ca)(Ti,Nb)O 3 ], apatite [(Ca,REE,Sr,Na,K) 3 Ca 2 (PO 4 ) 3 (F,OH)], and ionadsorption clays.…”

Section: Introductionmentioning

confidence: 99%

A Review of Rare Earth Mineral Processing Technology

Suli

Ibrahim

Aziz

et al. 2017

Chem. Eng. Res. Bull.

View full text Add to dashboard Cite

Abstract:The recent technological advancement has made the rare earth elements (REEs) more significant and they in turn have facilitated the culmination of more new technological applications owing to their unique physical and chemical properties. In this regard, renewable energy applications such as wind turbine and hybrid cars testify to the increasing demands on permanent magnet in the future. Considering such increasing demands on REEs, it is felt necessary to identify alternative producers of REEs outside of China as one of the measures to create a fair competition and control the price on the market. It is worth highlighting that the separation of rare earth can be both complex and challenging owing to similar properties which are shared by them. The purpose of this paper is to comprehensively review and summarize the rare earth processing routes, the mostly employed rare earth separation methods, supply and demand of rare earth around the world and some possible scenarios in rare earth market. This review has critically looked into a few authors' recent reviews on six major processes of rare earth processing steps and each step is considered as important to produce both high quality and better quantity of REEs.

show abstract

Dynamic Market Power in an Exhaustible Resource Industry. The Case of Rare Earth Elements

Cited by 9 publications

References 32 publications

A Political Economy of China's Export Restrictions on Rare Earth Elements

A Political Economy of China's Export Restrictions on Rare Earth Elements

Changes to the Regulatory Framework of the Chinese Rare Earth Industry after the Global Financial Crisis

A Review of Rare Earth Mineral Processing Technology

Contact Info

Product

Resources

About