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Studying the impact of investments in critical minerals and energy transition in transportation sector in Asia

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  • Du, Ruoyao

Abstract

Using the CUP-BC estimation technique, this study explores Foreign Direct Investment (FDI) in critical minerals and its impact on fuel consumption in the transportation sector across nine ASEAN countries from 1995 to 2022. Results indicate that a 1% increase in FDI in critical minerals is associated with a 0.54% reduction in fuel consumption. This underscores the role of minerals like lithium, cobalt, and nickel in advancing energy transition, particularly in electric vehicle (EV) battery production. Urbanization correlates with a 0.16% increase in fuel use, while higher income levels associate with a 0.08% rise. Investments in ICT and renewable energy deployment reduce fuel consumption, highlighting sustainable transport initiatives. The study recommends ASEAN prioritize FDI in critical minerals, bolster domestic capabilities, and develop infrastructure to support EV adoption and sustainable transport.

Suggested Citation

  • Du, Ruoyao, 2024. "Studying the impact of investments in critical minerals and energy transition in transportation sector in Asia," Resources Policy, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:jrpoli:v:96:y:2024:i:c:s0301420724005944
    DOI: 10.1016/j.resourpol.2024.105227
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    1. Guo, Qing & Zou, Yihong, 2025. "Dynamic sustainability assessment of critical mineral resources for China's EV industry: A multi-national niche and grey model approach," Energy Policy, Elsevier, vol. 207(C).

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    Keywords

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    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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