Effect Evaluation and Policy Research on the Exploitation Management of Rare Earth Resources

Abstract

Rare earth elements are considered as strategic nonrenewable resources. Thus, enormous attention has been paid to the exploitation management by the government and industry. Policy interventions can have a certain effect on the supply and market of rare earth. The purpose of this study is to evaluate the impact of China’s rare earth policy. We assessed the exploitation management during 19982018. Based on the national strategies and policy
objective, the process of policy evolution was categorized into three stages. Then, we used an empirical model to examine the effect of policies at different stages, from which it was found that strengthened resource exploitation management effectively controlled mining and production, while influencing international trade and price. Under the mining restrictions, a sharp decline in rare earth resources can be evaded, which could ensure the sustainable
supply capacity of rare earth resources. Furthermore, the consolidation of policy, along with resource management, would facilitate China to effectively regulate its supply and set the prices to an extent.