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An empirical approach to determine specific weights of driving factors for the price of commodities—A contribution to the measurement of the economic scarcity of minerals and metals

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  • Gleich, Benedikt
  • Achzet, Benjamin
  • Mayer, Herbert
  • Rathgeber, Andreas

Abstract

In recent years, commodity markets show a large amount of volatility and substantial price jumps, indicating an increasing economic scarcity in many cases. As this scarcity makes commodity procurement a critical issue for national economies, industry sectors and manufacturing companies, a number of criticality indices have been presented and utilized in science as well as in practice. These indices are mostly based on an aggregation of different key figures, both qualitative and quantitative. However, the weighting of the different factors is in most cases arbitrary or based on rough estimates.

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  • Gleich, Benedikt & Achzet, Benjamin & Mayer, Herbert & Rathgeber, Andreas, 2013. "An empirical approach to determine specific weights of driving factors for the price of commodities—A contribution to the measurement of the economic scarcity of minerals and metals," Resources Policy, Elsevier, vol. 38(3), pages 350-362.
    • Handle: RePEc:eee:jrpoli:v:38:y:2013:i:3:p:350-362
    DOI: 10.1016/j.resourpol.2013.03.011
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    References listed on IDEAS

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    Cited by:

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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.
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    5. Hache, Emmanuel & Seck, Gondia Sokhna & Simoen, Marine & Bonnet, Clément & Carcanague, Samuel, 2019. "Critical raw materials and transportation sector electrification: A detailed bottom-up analysis in world transport," Applied Energy, Elsevier, vol. 240(C), pages 6-25.
    6. 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.
    7. Lapko, Yulia & Trucco, Paolo & Nuur, Cali, 2016. "The business perspective on materials criticality: Evidence from manufacturers," Resources Policy, Elsevier, vol. 50(C), pages 93-107.
    8. Fu, Xinkai & Ueland, Stian M. & Olivetti, Elsa, 2017. "Econometric modeling of recycled copper supply," Resources, Conservation & Recycling, Elsevier, vol. 122(C), pages 219-226.
    9. Fernandez, Viviana, 2017. "Some facts on the platinum-group elements," International Review of Financial Analysis, Elsevier, vol. 52(C), pages 333-347.
    10. József Popp & Judit Oláh & Mária Farkas Fekete & Zoltán Lakner & Domicián Máté, 2018. "The Relationship Between Prices of Various Metals, Oil and Scarcity," Energies, MDPI, vol. 11(9), pages 1-19, September.
    11. Marie K. Schellens & Johanna Gisladottir, 2018. "Critical Natural Resources: Challenging the Current Discourse and Proposal for a Holistic Definition," Resources, MDPI, vol. 7(4), pages 1-28, December.
    12. Schischke, A. & Papenfuß, P. & Brem, M. & Kurz, P. & Rathgeber, A.W., 2023. "Sustainable energy transition and its demand for scarce resources: Insights into the German Energiewende through a new risk assessment framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 176(C).
    13. Hatayama, Hiroki & Tahara, Kiyotaka, 2018. "Adopting an objective approach to criticality assessment: Learning from the past," Resources Policy, Elsevier, vol. 55(C), pages 96-102.
    14. Kim, Juhan & Lee, Jungbae & Kim, BumChoong & Kim, Jinsoo, 2019. "Raw material criticality assessment with weighted indicators: An application of fuzzy analytic hierarchy process," Resources Policy, Elsevier, vol. 60(C), pages 225-233.
    15. Zhu, Yongguang & Xu, Deyi & Cheng, Jinhua & Ali, Saleem Hassan, 2018. "Estimating the impact of China's export policy on tin prices: a mode decomposition counterfactual analysis method," Resources Policy, Elsevier, vol. 59(C), pages 250-264.
    16. Valero, Alicia & Domínguez, Adriana & Valero, Antonio, 2015. "Exergy cost allocation of by-products in the mining and metallurgical industry," Resources, Conservation & Recycling, Elsevier, vol. 102(C), pages 128-142.
    17. Hatayama, Hiroki & Tahara, Kiyotaka, 2015. "Evaluating the sufficiency of Japan׳s mineral resource entitlements for supply risk mitigation," Resources Policy, Elsevier, vol. 44(C), pages 72-80.
    18. Shule Li & Jingjing Yan & Qiuming Pei & Jinghua Sha & Siyu Mou & Yong Xiao, 2019. "Risk Identification and Evaluation of the Long-term Supply of Manganese Mines in China Based on the VW-BGR Method," Sustainability, MDPI, vol. 11(9), pages 1-23, May.
    19. Krogscheepers, Corris & Gossel, Sean Joss, 2015. "Input cost and international demand effects on the production of platinum group metals in South Africa," Resources Policy, Elsevier, vol. 45(C), pages 193-201.
    20. Hu, Min & Zhang, Dayong & Ji, Qiang & Wei, Lijian, 2020. "Macro factors and the realized volatility of commodities: A dynamic network analysis," Resources Policy, Elsevier, vol. 68(C).

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    More about this item

    Keywords

    Commodities; Scarcity; Criticality assessment; Commodity prices;
    All these keywords.

    JEL classification:

    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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