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How effective is lithium recycling as a remedy for resource scarcity?

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  • Rosendahl, Knut Einar

    (School of Economics and Business, Norwegian University of Life Sciences)

  • Rubiano, Diana Roa

    (School of Economics and Business, Norwegian University of Life Sciences)

Abstract

We investigate to what extent recycling can remedy resource scarcity, and whether market intervention is desired. For doing so, we develop a dynamic model of the global lithium market. An efficient market for resource waste allows consumers to internalize the waste value when they buy the resource. In the analytical part of our paper, we show that the efficient market can alternatively be realized through a proper set of worldwide subsidies to either buyers or sellers of both virgin and recycled lithium. In our numerical simulations, we find that optimal subsidies may become quite substantial in the second half of this century. The size of these subsidies depends, however, on a number of uncertain assumptions such as technological progress in both extraction and recycling, quality-grade of recovered lithium, and demand elasticity.

Suggested Citation

  • Rosendahl, Knut Einar & Rubiano, Diana Roa, 2018. "How effective is lithium recycling as a remedy for resource scarcity?," Working Paper Series 3-2018, Norwegian University of Life Sciences, School of Economics and Business, revised 16 Apr 2018.
    • Handle: RePEc:hhs:nlsseb:2018_003
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    Cited by:

    1. Lafforgue, Gilles & Lorang, Etienne, 2022. "Recycling under environmental, climate and resource constraints," Resource and Energy Economics, Elsevier, vol. 67(C).
    2. Ba, Bocar Samba & Soubeyran, Raphael, 2023. "Hotelling and recycling," Resource and Energy Economics, Elsevier, vol. 72(C).
    3. Diana Roa & Knut Einar Rosendahl, 2023. "Policies for Material Circularity: the Case of Lithium," Circular Economy and Sustainability, Springer, vol. 3(1), pages 373-405, March.
    4. Compagnoni, Marco & Grazzi, Marco & Pieri, Fabio & Tomasi, Chiara, 2023. "Extended producer responsibility and trade flows in waste: The case of batteries," FEEM Working Papers 338789, Fondazione Eni Enrico Mattei (FEEM).
    5. Yang, Shubo & Jahanger, Atif & Balsalobre-Lorente, Daniel, 2024. "Sustainable resource management in China's energy mining sector: A synthesis of development and conservation in the FinTech era," Resources Policy, Elsevier, vol. 89(C).
    6. Roa, Diana & Navrud, Ståle & Rosendahl, Knut Einar, 2023. "Accounting for unintended ecological effects of our electric future: Optimizing lithium mining and biodiversity preservation in the Chilean High-Andean wetlands," Resource and Energy Economics, Elsevier, vol. 75(C).
    7. Bruno Jetin, 2020. "Who will control the electric vehicle market?," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 20(2), pages 156-177.
    8. Terreaux, Jean-Philippe, 2022. "The rise and fall of La Graufesenque: The fate of development based on a non-renewable resource," Ecological Economics, Elsevier, vol. 196(C).

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    More about this item

    Keywords

    Natural Resource Economics; Exhaustible resources; Minerals; Recycling;
    All these keywords.

    JEL classification:

    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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