Energy Transition Metals

Lukas Boer, Andrea Pescatori and Martin Stuermer

No 1976, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: 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.

Keywords: Conditional forecasts; structural vector autoregression; structural scenario analysis; energy transition; metals; fossil fuels; prices; climate change (search for similar items in EconPapers)
JEL-codes: C32 C53 Q3 Q4 Q54 (search for similar items in EconPapers)
Pages: 42 p.
Date: 2021
New Economics Papers: this item is included in nep-ene, nep-env and nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Related works:
Working Paper: Energy Transition Metals (2021)
Working Paper: Energy Transition Metals (2021)
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