Discussion Papers 1976, 42 S.
Lukas Boer, Andrea Pescatori, Martin Stuermer
2021
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Published in: Journal of the European Economic Association 22 (2024), 1, S. 200-229
The energy transition requires substantial amounts of metals such as copper, nickel, cobalt and lithium. Are these metals a key bottleneck? We identify metal-specific demand shocks, estimate supply elasticities and pin down the price impact of the energy transition in a structural scenario analysis. Metal prices would reach historical peaks for an unprecedented, sustained period in a net-zero emissions scenario. The total value of metals production would rise more than four-fold for the period 2021 to 2040, rivaling the total value of crude oil production. Metals are a potentially important input into integrated assessments models of climate change.
JEL-Classification: C32;C53;Q3;Q4;Q54
Keywords: Conditional forecasts, structural vector autoregression, structural scenario analysis, energy transition, metals, fossil fuels, prices, climate change
Frei zugängliche Version: (econstor)
http://hdl.handle.net/10419/245911