On the politics and economics of the shift from fossil fuels to critical minerals
Abstract
Abstract The global economy is gradually exiting the era of fossil fuels while entering the era of critical minerals. That shift is coming in handy for fossil fuel dependent economies, which have had difficulty diversifying outside the resource sector. It is, indeed, politically and economically expedient for leaders in fossil fuel dependent economies to diversify within the extractive sector instead of moving beyond it. Yet, the massive technological and geopolitical uncertainties associated with the era of critical minerals will make diversification within the extractive sector risky. Adopting fiscal prudence and long-term contracts for critical minerals can partly mitigate the risk but leaves open the need to find sustainable engines for economic growth and jobs.
Fields of Study & Subjects
Extraction and Separation Processes
Mining and Resource Management
Natural Resources and Economic Development
Publication details
- Journal / source
- Oxford Review of Economic Policy
- Publisher
- Oxford University Press (OUP)
- Volume
- 42
- Issue
- 1
- Pages
- 156–169
- Publication date
- 1 January 2026
- Language
- EN