Shadow prices and production inefficiency of mineral resources
Kong Joo Shin,
Hidemichi Fujii () and
Economic Analysis and Policy, 2018, vol. 57, issue C, 111-121
With the Millennium Development Goal focusing on the eradication of poverty in developing countries expiring in 2015, the international focus is shifting toward sustainable development. The sustainability of the natural resources that are used as energy sources and in the production of goods is a global issue that is not specific to developing nations. We contribute to the need for quantitative targets for natural resources by calculating the shadow prices and production inefficiency levels of 32 mineral resources by using a stochastic frontier analysis and panel data from 1980 to 2010 in 162 countries. In addition, we provide estimated shadow prices and production inefficiency levels up to 2020 with various levels of production restrictions. The results show the following: (1) The shadow prices and production inefficiency levels of major metals are generally higher in Asian countries than in non-Asian countries; (2) there is an upward trend in the inefficiency levels in Asian countries, whereas the inefficiency levels remain rather stable in non-Asian countries; (3) production restrictions do not guarantee an increase in shadow prices, but the magnitude of the impact of such restrictions seems to be larger in Asian countries compared to non-Asian countries; (4) production restrictions do not seem to affect production inefficiency; thus, they may not be effective in reducing gaps in production inefficiency between Asian and non-Asian countries.
Keywords: Mineral resources; Production restriction; Sustainability; Shadow price (search for similar items in EconPapers)
JEL-codes: L61 Q31 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:57:y:2018:i:c:p:111-121
Access Statistics for this article
Economic Analysis and Policy is currently edited by Clevo Wilson
More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().