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Balancing supply diversification and environmental impacts: A system dynamics approach to de-risk rare earths supply chain

Author

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  • Hamed, Mosaab M.
  • Turan, Hasan Hüseyin
  • Elsawah, Sondoss

Abstract

We introduce a System Dynamics (SD) model to examine policy measures aimed at diversifying the global supply chain of rare earth elements (REEs) and reducing reliance on China. Through meticulous simulation experiments, the paper evaluates the effectiveness of individual policies and their combinations (strategies) on enhancing the Rest of the World’s (RoW) market share, minimizing environmental impacts, and meeting the burgeoning demand for Neodymium—essential for green technologies such as electric vehicles and wind turbines.

Suggested Citation

  • Hamed, Mosaab M. & Turan, Hasan Hüseyin & Elsawah, Sondoss, 2024. "Balancing supply diversification and environmental impacts: A system dynamics approach to de-risk rare earths supply chain," Resources Policy, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:jrpoli:v:92:y:2024:i:c:s0301420724004057
    DOI: 10.1016/j.resourpol.2024.105038
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    References listed on IDEAS

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    2. Xie, Kaiyu & Machado, Marcos R. & Spierdijk, Laura & Yazan, Devrim Murat, 2026. "Financing circularity strategies in critical raw materials supply chains: Toward a novel blended framework," Resources Policy, Elsevier, vol. 112(C).
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    4. Behnaz Minooei Fard, 2025. "The Impact of Political and Economic Constraints on the Rare Earth Elements Market," Working Papers tax-mpg-rps-2025-06, Max Planck Institute for Tax Law and Public Finance.
    5. Kai A. Konrad, 2026. "China’s rare earth policy: Prosperity maximization or great power geoeconomics?," Working Papers tax-mpg-rps-2026-06, Max Planck Institute for Tax Law and Public Finance.
    6. Qing Guo & Jiayi Liu, 2025. "Study on the measurement of China’s rare earth products’ international market power and influencing factors," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-31, December.
    7. Coveri, Andrea & Giammetti, Raffaele & Zanfei, Antonello, 2025. "Functional diversification and GVC exposure: Evidence and implications," Economic Modelling, Elsevier, vol. 152(C).
    8. Marty, Justine & Ruel, Salomée, 2025. "Unpacking the interconnected challenges of rare metals supply chains: A systematic literature network analysis and conceptual framework," Resources Policy, Elsevier, vol. 106(C).

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