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An Overview of Indicator Choice and Normalization in Raw Material Supply Risk Assessments

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  • Christoph Helbig

    (Resource Lab, University of Augsburg, Universitaetsstr. 16, 86519 Augsburg, Germany)

  • Martin Bruckler

    (Resource Lab, University of Augsburg, Universitaetsstr. 16, 86519 Augsburg, Germany)

  • Andrea Thorenz

    (Resource Lab, University of Augsburg, Universitaetsstr. 16, 86519 Augsburg, Germany)

  • Axel Tuma

    (Resource Lab, University of Augsburg, Universitaetsstr. 16, 86519 Augsburg, Germany)

Abstract

Supply risk assessments are an integral part of raw material criticality assessments frequently used at the country or company level to identify raw materials of concern. However, the indicators used in supply risk assessments to estimate the likelihood of supply disruptions vary substantially. Here, we summarize and evaluate the use of supply risk indicators and their normalization to supply risk scores in 88 methods published until 2020. In total, we find 618 individual applications of supply risk criteria with 98 unique criteria belonging to one of ten indicator categories. The most often used categories of supply risk indicators are concentration, scarcity, and political instability. The most frequently used criteria are the country concentration of production, depletion time of reserves, and geopolitical risk. Indicator measurements and normalizations vary substantially between different methods for the same criterion. Our results can be used for future raw material criticality assessments to screen for suitable supply risk indicators and generally accepted indicator normalizations. We also find a further need for stronger empirical evidence of widely used indicators.

Suggested Citation

  • Christoph Helbig & Martin Bruckler & Andrea Thorenz & Axel Tuma, 2021. "An Overview of Indicator Choice and Normalization in Raw Material Supply Risk Assessments," Resources, MDPI, vol. 10(8), pages 1-26, August.
    • Handle: RePEc:gam:jresou:v:10:y:2021:i:8:p:79-:d:608060
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    References listed on IDEAS

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    3. Valérie Mignon & Pauline Bucciarelli & Emmanuel Hache, 2024. "Evaluating criticality of strategic metals: Are the Herfindahl–Hirschman Index and usual concentration thresholds still relevant?," Working Papers hal-04452384, HAL.
    4. Karan Bhuwalka & Randolph E. Kirchain & Elsa A. Olivetti & Richard Roth, 2023. "Quantifying the drivers of long‐term prices in materials supply chains," Journal of Industrial Ecology, Yale University, vol. 27(1), pages 141-154, February.
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