Copper is a metal that is commonly found in our society's infrastructure, such as cables and wires. In addressing the climate threat, society is facing a major transition towards electrification and digitization, and here copper plays an essential role. Since copper is a main component in the infrastructure, the demand for copper has increased rapidly due to the electrification of, for example, the automotive industry. Even though copper in the earth’s crust is a scarce resource, it can be recycled an infinite number of times without losing its quality. For this reason, meeting future demand partly through secondary copper production is likely to be important. The aim of this study is to investigate what factors influence the secondary refined copper production levels in nine different countries in Europe. Specifically, the study examines how electricity prices, copper scrap prices, primary production of copper, GDP per capita and cost of labor affect the supply of secondary refined copper. The empirical analysis is based on data from nine European countries and over a period of 21 years, 1998 – 2019, thus adopting a panel data approach. The results from the econometric analyses show that all five variables tend to influence the supply of secondary refined copper, some having a more profound effect than the others. For instance, the findings suggest the presence of a low and negative electricity price elasticity of secondary refined supply, while an increase in the copper scrap price appears to have significant deterring impact on secondary refined copper production.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:ltu-98141 |
| Date | January 2023 |
| Creators | Öhman, Matilda, Persson, Sanna |
| Publisher | Luleå tekniska universitet, Institutionen för ekonomi, teknik, konst och samhälle |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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