An economic framework for assessing the impact of domestic mining policies on affordable energy transition

Abstract

AbstractThe global transition towards sustainable energy sources necessitates a delicate balance between incentivizing domestic mineral inputs and ensuring affordable energy transition. This paper investigates a diverse set of policies aimed at promoting domestic mining and their implications for achieving an affordable energy transition. Through a comprehensive economic framework, we analyze the effects of demand and supply-side policies on import reliance, production costs, and the overall progress of the energy transition. By examining various scenarios and their outcomes, we provide insights into the potential challenges and opportunities associated with designing mineral policies that facilitate both domestic mining growth and affordable clean energy technologies. Our findings highlight the importance of striking a balance between promoting domestic resources and ensuring affordability in the pursuit of a sustainable energy future.