The Rare-Earth Footprint of the Global Economy: Input-Output Evidence

Laura Alfaro, Harald Fadinger, Jan Schymik and Gede Virananda

AEA Papers and Proceedings, 2026, vol. 116, 103-108

Abstract: Rare earth elements (REEs) are essential inputs in advanced manufacturing and green technologies, yet their role in global production networks remains difficult to quantify due to data limitations. This paper develops a methodology, following Alfaro et al. (2024), to embed REE use into a standard input-output framework by augmenting the 2017 US supply-use table. This enables the measurement of industry-level total requirements of REE. Validation using firm-level business descriptions confirms that this measure captures economically meaningful REE dependence. We further develop a country-level index of geoeconomic exposure to REE supply risks, highlighting vulnerabilities among advanced manufacturing economies.

JEL-codes: D57 F14 F23 L52 L60 Q31 Q37 (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1257/pandp.20261068

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