Research

The rising consumption and expanding global population have exposed the limitations of the current economic model, which takes a 'take-make-dispose' approach. The Circular Economy (CE) offers a promising alternative. Unlike the linear model, the Circular Economy aims to optimize resource use by emphasizing reduction, reuse, repair, and recycling. This model seeks to extend the life cycle of products and materials, minimizing waste and promoting more sustainable consumption patterns. In essence, CE reimagines the way resources flow through the economy, creating closed-loop systems in which materials are continually repurposed and reintegrated into production processes. Implementing the CE model would inevitably alter the consumption and demand patterns in countries, thus, change the pattern and composition of materials, parts, and products traded globally. 

Our research at the Chair of Environmental and Mineral Economics (CEME) investigates new challenges and opportunities for policymakers and businesses as they navigate the transition toward a more sustainable economic model. Our work particularly focuses on the role of trade policies and environmental regulations in promoting or hindering the transition to a circular economy.

The economics of critical minerals is central to understanding the global energy transition. As clean technologies rely increasingly on minerals such as lithium, cobalt, nickel and rare earth elements, issues of supply security, production costs and trade dependencies become more important. Assessing these minerals requires combining insights from geology, mining economics and international markets. Factors like price volatility, concentrated refining capacity and the challenges of by-product recovery all influence long-term availability. A broad, evidence-based approach helps clarify how physical resource limits, economic conditions and global supply chains shape the pace, risks and overall sustainability of the transition to low-carbon energy systems.

Our team at CEME works on research that explores the evolving role of critical minerals in the global energy transition. We examine long-term supply dynamics, the economic factors shaping production, and how international trade influences access to key materials. By integrating these perspectives, we aim to clarify systemic risks and inform strategies for a sustainable and resilient transition.

The nexus between trade, global value chains (GVCs), and the environment has become central to discussions on sustainable development. Trade openness and GVC participation can support cleaner growth by facilitating access to advanced technologies, promoting energy-efficient production, and diffusing higher environmental standards through international competition. These channels allow firms—especially in developing economies—to upgrade toward greener and more productive activities. Yet, GVC expansion also generates environmental challenges. Fragmented production structures increase transport emissions, intensify resource use, and may encourage the relocation of pollution-intensive industries to countries with weaker regulations. Without appropriate governance, the environmental gains from trade can be offset by higher global emissions and ecological degradation. At the same time, climate risks such as extreme weather events threaten the resilience of GVCs, creating vulnerabilities in supply chains that are heavily dependent on cross-border inputs. 

Our work at CEME examines the need for countries to integrate climate adaptation into their development and trade strategies. We focus namely on emerging policy tools—such as trade agreements, border adjustment mechanisms, and green industrial incentives that aim to align trade with environmental goals, but they also raise concerns about equity and competitiveness.