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Mineral Import Demand and Clean Energy Transitions in the Top Mineral Importing Countries

Author

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  • Islam, Monirul
  • Sohag, Kazi
  • Alam, Md. Mahmudul

    (Universiti Utara Malaysia)

Abstract

The clean energy transitions require a large volume of minerals to handle its diverse technologies, such as solar photovoltaics (PV), wind turbines etc. Therefore, mineral importing countries concentrated on cleaner energy production confront an uprising trend in critical mineral prices due to thriving demands. We quest for the response of the top mineral importing countries' import demand for minerals to the clean energy transitions from 1996 to 2019 within the import-demand function analysis. Using the cross-sectional autoregressive distributed lag (CS-ARDL) method, our findings divulge a significantly positive response of mineral import demand to solar and wind energy productions in the long run. We also find that mineral price elasticity holds the Marshallian demand hypothesis in the mineral-laden solar energy generation while contradicting it in wind energy production. In addition, the oil price substitution effect does not sustain, whereas exchange rate depreciates mineral import demands in the long run. Therefore, our policy implications encompass optimizing the mineral resources for clean energy transitions to materialize the 21st century's global agenda of a decarbonized or net-zero emissions trajectory.

Suggested Citation

  • Islam, Monirul & Sohag, Kazi & Alam, Md. Mahmudul, 2022. "Mineral Import Demand and Clean Energy Transitions in the Top Mineral Importing Countries," OSF Preprints kbj69, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:kbj69
    DOI: 10.31219/osf.io/kbj69
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    18. Jiang, Lan & Jiang, Hua, 2023. "Analysis of predictions considering mineral prices, residential energy, and environmental risk: Evidence from the USA in COP 26 perspective," Resources Policy, Elsevier, vol. 82(C).
    19. Raul Caruso & Maria Cipollina, 2023. "The Effect of Economic Sanctions on World Trade of Mineral Commodities. A Gravity Model Approach from 2009 to 2020," DISCE - Quaderni del Dipartimento di Politica Economica dipe0034, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
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    JEL classification:

    • B27 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - International Trade and Finance
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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