Sustainable Resource Management and Economic Development: Evaluating the Impact of Rare Earth Mining on Local Economies and Environmental Sustainability in China

Abstract

Chinese mining is vital to the global economy due to its strategic supply of rare earth elements (REEs) necessary for the production of high-quality technologies such as wind turbines, electric vehicles, and many others. Through direct employment and sources of industries, China, which is a major producer in the global market, has revolutionized the local and national economy. However, similar to many other mining processes, this also creates critical problems of environmental pollution, destruction of habitat, and loss of biological diversity, which raises sustainability questions. The study review assembles prior literature on the economic effects and environmental costs of rare earth mining in China, assesses their sustainable management and suggests the areas for further research. The review covers both empirical papers and theoretical articles, as well as policy documents and environmental reports. This systematic cross-database search of the key terms resulted in the following finding: The implication drawn from the research is that, though the mining of rare earth is beneficial for development, it has negative impacts on the environment. Globally, sustainable management practices have elicited mixed success in managing the impacts of the concerns that arise, thus showing the need to adopt scale-appropriate solutions. However, due to the high level of heterogeneity that has been evidenced from the studies, more refined research and policies are required. For the purpose of furthering the sustainable goal in balance with the economic profit, future research should focus on the longitudinal setting and assess the performance of the sustainable practices within areas of rare earth mining in China.