The Metal Resources (METRO) Model. A Dynamic Partial Equilibrium Model for Metal Markets Applied to Rare Earth Elements
33 Pages Posted: 16 Jan 2014
Date Written: December 18, 2013
This paper presents the METal ResOurces (METRO) model, a partial equilibrium model tailored for metal markets. It allows for a disaggregated representation of the mining sector and endogenous investment in extractive capacities. It can be calibrated to a large number of metal markets. Rare Earth Elements are the first group of metals for which the model is implemented. A new dataset on Rare Earth mines is compiled to calibrate it. First results on key developments of Rare Earth markets are presented. Extensive sensitivity analyses indicate their robustness.
Keywords: Partial Equilibrium Model, Metals, Rare Earths, Exhaustible Resources
JEL Classification: F17, Q31, Q37
Suggested Citation: Suggested Citation