The role of recycling in alleviating supply chain risk–Insights from a stock-flow perspective using a hybrid input-output database

Abstract

Metal resources are unevenly distributed throughout the globe but are crucial for the global economy. Many economies are highly dependent and vulnerable to material supply from other parts of the world. This situation can be alleviated by recycling, as regions devoided of important reserves exploit their own urban mine. In this study, we explored an increased domestic recycling scenario utilizing a stock-flow perspective combined with a hybrid input-output database (EXIOBASE). We applied a mass rebalancing procedure on the production and trade flows of ores and metals. We calculated the supply risk with the GeoPolRisk method for single and two-stage supply chains. Results show that recycling reduce the risk associated with trade for most of countries and materials for the metal supply chain, where recycling effectively takes place. In contrast, such risk decrease is not found in the ore supply chain nor in the combined ore and metal supply chain.