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Governance and Risk–Value Constructions in Closing Loops of Rare Earth Elements in Global Value Chains

Machacek, Erika; Richter, Jessika Luth LU and Lane, Ruth (2017) In Resources 6(4).
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... (More)
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. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
rare earth elements, recycling, transaction, risk, global value chain, governance, value
in
Resources
volume
6
issue
4
publisher
Multidisciplinary Digital Publishing Institute (MDPI)
external identifiers
  • scopus:85037050823
ISSN
2079-9276
DOI
10.3390/resources6040059
language
English
LU publication?
yes
id
627a3810-1696-4351-ba06-23fcf1673a52
date added to LUP
2017-10-31 16:04:37
date last changed
2018-01-07 12:24:36
@article{627a3810-1696-4351-ba06-23fcf1673a52,
  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.},
  author       = {Machacek, Erika and Richter, Jessika Luth and Lane, Ruth},
  issn         = {2079-9276},
  keyword      = {rare earth elements,recycling,transaction,risk,global value chain, governance, value},
  language     = {eng},
  number       = {4},
  publisher    = {Multidisciplinary Digital Publishing Institute (MDPI)},
  series       = {Resources},
  title        = {Governance and Risk–Value Constructions in Closing Loops of Rare Earth Elements in Global Value Chains},
  url          = {http://dx.doi.org/10.3390/resources6040059},
  volume       = {6},
  year         = {2017},
}