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Contribution of Rare Earth Elements Is Key to the Economy of the Future

Author

Listed:
  • Juan-Ramón Cuadros-Muñoz

    (Department of Agricultural Economics, Finance and Accounting, Faculty of Law and Financial Economy, Universidad de Córdoba, 14071 Córdoba, Spain)

  • Juan-Antonio Jimber-del-Río

    (Department of Agricultural Economics, Finance and Accounting, Faculty of Law and Financial Economy, Universidad de Córdoba, 14071 Córdoba, Spain)

  • Rafael Sorhegui-Ortega

    (Research Departement, Universidad Bolivariana del Ecuador, Durán 092405, Ecuador)

  • Michelle Zea-De la Torre

    (School of Economics, Universidad Ecotec, Samborondón 092302, Ecuador)

  • Arnaldo Vergara-Romero

    (Department of Agricultural Economics, Finance and Accounting, Faculty of Law and Financial Economy, Universidad de Córdoba, 14071 Córdoba, Spain)

Abstract

An econometric model was developed to analyze the contribution of various factors to the gross value added to the agricultural, manufacturing, and service sectors in the United States. The study found that variables such as rare earth element mining, the employment it generates, the domestic consumption, imports, and prices of certain elements significantly impact economic sectors. The models showed a good fit and met the necessary statistical assumptions. Rare earth elements are essential for a wide range of technological products, with China being the leading producer and consumer. This has raised concerns about the dependence on other countries. These elements significantly impact the economy’s primary, secondary, and tertiary sectors used in agriculture, manufacturing, and services. Rare earth elements’ mining and processing are complex and expensive processes, and demand is expected to continue to increase in the future.

Suggested Citation

  • Juan-Ramón Cuadros-Muñoz & Juan-Antonio Jimber-del-Río & Rafael Sorhegui-Ortega & Michelle Zea-De la Torre & Arnaldo Vergara-Romero, 2024. "Contribution of Rare Earth Elements Is Key to the Economy of the Future," Land, MDPI, vol. 13(8), pages 1-16, August.
    • Handle: RePEc:gam:jlands:v:13:y:2024:i:8:p:1220-:d:1451291
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    References listed on IDEAS

    as
    1. Li, Zheng-Zheng & Meng, Qin & Zhang, Linling & Lobont, Oana-Ramona & Shen, Yijuan, 2023. "How do rare earth prices respond to economic and geopolitical factors?," Resources Policy, Elsevier, vol. 85(PA).
    2. N.T. Nassar & Xiaoyue Du & T.E. Graedel, 2015. "Criticality of the Rare Earth Elements," Journal of Industrial Ecology, Yale University, vol. 19(6), pages 1044-1054, December.
    3. Xia, Qifan & Du, Debin & Cao, Wanpeng & Li, Xiya, 2023. "Who is the core? Reveal the heterogeneity of global rare earth trade structure from the perspective of industrial chain," Resources Policy, Elsevier, vol. 82(C).
    4. Hu, Xiaoqian & Sun, Boxue & Wang, Chao & Lim, Ming K. & Wang, Peng & Geng, Xinyi & Yao, Cuiyou & Chen, Wei-Qiang, 2023. "Impacts of China’s exports decline in rare earth primary materials from a trade network-based perspective," Resources Policy, Elsevier, vol. 81(C).
    5. Emmanuel Apergis & Nicholas Apergis, 2018. "What is extracted from earth is gold: are rare earths telling a new tale to economic growth?," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 45(1), pages 177-192, January.
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