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Estimating the price elasticity of critical mineral supply
20th of November 2025
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Microeconomics
Post No. 419. Granular mine data show that the supply of minerals critical to the energy transition reacts rapidly to price movements caused by demand shocks. The reaction depends on the characteristics of mines and of global mineral markets. It is weaker in Africa due to the higher prevalence of conflicts near mines, which makes it harder for supply to adjust.
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