AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
The Rare-Earth Footprint of the Global Economy: Input-Output Evidence
AEA Papers and Proceedings
(pp. 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.Citation
Alfaro, Laura, Harald Fadinger, Jan Schymik, and Gede Virananda. 2026. "The Rare-Earth Footprint of the Global Economy: Input-Output Evidence." AEA Papers and Proceedings 116: 103–108. DOI: 10.1257/pandp.20261068Additional Materials
JEL Classification
- D57 General Equilibrium and Disequilibrium: Input-Output Tables and Analysis
- F14 Empirical Studies of Trade
- F23 Multinational Firms; International Business
- L52 Industrial Policy; Sectoral Planning Methods
- L60 Industry Studies: Manufacturing: General
- Q31 Nonrenewable Resources and Conservation: Demand and Supply; Prices
- Q37 Nonrenewable Resources and Conservation: Issues in International Trade