Governance and risk-value constructions in closing loops of rare earth elements in global value chains

Erika Machacek, Jessika Luth Richter, Ruth Lane

Research output: Contribution to journalArticleResearchpeer-review

7 Citations (Scopus)

Abstract

This article addresses a research gap on the challenges-specifically risk and value-connected to realizing the potential for closing loops for rare earth elements (REE). We develop an analytical framework from conceptual elements of the global value chain (GVC) framework and the relational theory of risk to examine several empirical REE industry cases for loop closure. The aim of the paper is to identify how risk-value relationships are constructed by different actors as governance structures form in transactions prior to price setting and how these have impacts on the closure of REE loops. Often, REE loops are not closed, and we find that constructions of the risk-value relationship by industrial actors and by government agencies are unstable as they pursue different motivations, consequently hindering REE loop closure in GVCs. In light of this, we propose that governments mediate against the construction of risk-value relationships by facilitating information on the characteristics of end-of-life materials that qualify these for re-entry into loops.

Original languageEnglish
Article number59
Number of pages25
JournalResources
Volume6
Issue number4
DOIs
Publication statusPublished - 25 Oct 2017

Keywords

  • Global value chain
  • Governance
  • Rare earth elements
  • Recycling
  • Risk
  • Transaction
  • Value

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