Intergenerational Externalities Influence for Exploitation Process of Rare Metal Minerals

Abstract

Rare metal minerals are important strategic resources. Promoting the sustainable development of their mining process is not only related to energy and environmental issues, but also directly affects the sustainable development of the entire supply chain. Considering the influence of intergenerational externalities on the equilibrium in the rare metal mineral exploitation process is of critical significance to maintaining the sustainable development of rare metal minerals and securing a sustainable resource exploitation process. This paper develops a sustainability analysis model based on an intergenerational externalities influence and examines the influence of the shift in comprehensive production cost burden through the whole supply chain, which aims at the sustainable development of the exploitation process of rare metal minerals. The results indicate that in a vertically linked industrial chain, the upstream and downstream structure of the supply chain and the type of production cost are the factors that determine sustainable development. Upstream suppliers or countries should design their production systems based on their own circumstances. Specifically, when an upstream country has a low technological level for mineral exploitation processes and high development costs, a resource tax would be more effective in mediating sustainable development.