Assessment and influencing factors analysis of economic system vulnerability of the Belt and Road Initiative countries

Economic vulnerability is an important indicator to measure regional coordination, health and stability. Despite the importance of vulnerabilities, this is the first study that presents 26 indicators selected from the dimensions of the domestic economic system, external economic system and financial system in the Belt and Road Initiative (BRI) countries. A quantitative analysis is conducted to analyze the characteristics of spatial heterogeneity of vulnerability of the economic subsystems and the comprehensive economic system of the BRI countries and the main influencing factors of the comprehensive economic system vulnerability (CESV) are identified based on obstacle degree model. The results show that the CESV of the East Asia, South Asia and ASEAN countries are lower than that of the Middle Eastern Europe, Central Asia and West Asia countries. The CESV of the BRI countries are generally in the middle level and the average vulnerability index of highly vulnerable countries is twice as much as that of lowly vulnerable countries. In addition, in terms of the vulnerability of the three subsystems, the spatial distribution of vulnerability of the domestic economic system (DESV) and financial system (FSV) is basically consistent with the spatial distribution pattern of CESV, both of which are low in East Asia and South Asia and high in West Asia and Central Asia. While, the vulnerability of external economic system (EESV) shows a different spatial pattern, with vulnerability of West Asia, Central Asia and ASEAN higher than that of East Asia and South Asia. The main obstacle factors influencing the CESV of BRI countries include GDP growth rate, saving ratio, ratio of bank capital to assets, service industry level, industrialization level and loan rate. Therefore, the key way to maintain the stability and mitigate the vulnerability of the economic system of BRI countries is to focus on the macroeconomic development and operation, stimulate the economy and market vitality, promote the development of industries, especially the service and secondary industries, and optimize the economic structure, banking system and financial system.

Measuring raw-material criticality of product systems through an economic product importance indicator: a case study of battery-electric vehicles

Purpose The concept of criticality concerns the probability and the possible impacts of shortages in raw-material supply and is usually applied to regional economies or specific industries. With more and more products being highly dependent on potentially critical raw materials, efforts are being made to also incorporate criticality into the framework of life cycle sustainability assessment (LCSA). However, there is still some need for methodological development of indicators to measure raw-material criticality in LCSA. Methods We therefore introduce ‘economic product importance’ (EPI) as a novel parameter for the product-specific evaluation of the relevance and significance of a certain raw material for a particular product system. We thereby consider both the actual raw-material flows (life cycle inventories) and the life cycle cost. The EPI thus represents a measure for the material-specific product-system vulnerability (another component being the substitutability). Combining the product-system vulnerability of a specific product system towards a certain raw material with the supply disruption probability of that same raw material then yields the product-system specific overall criticality with regard to that raw material. In order to demonstrate our novel approach, we apply it to a case study on a battery-electric vehicle. Results Since our approach accounts for the actual amounts of raw materials used in a product and relates their total share of costs to the overall costs of the product, no under- or over-estimation of the mere presence of the raw materials with respect to their relevance for the product system occurs. Consequently, raw materials, e.g. rare earth elements, which are regularly rated highly critical, do not necessarily reach higher criticality ranks within our approach, if they are either needed in very small amounts only or if their share in total costs of the respective product system is very low. Accordingly, in our case study on a battery-electric vehicle product system, most rare earth elements are ranked less critical than bulk materials such as copper or aluminium. Conclusion Our EPI approach constitutes a step forward towards a methodology for the raw-material criticality assessment within the LCSA framework, mainly because it allows a product-specific evaluation of product-system vulnerability. Furthermore, it is compatible with common methods for the supply disruption probability calculation — such as GeoPolRisk, ESP or ESSENZ — as well as with available substitutability evaluations. The practicability and usefulness of our approach has been shown by applying it to a battery-electric vehicle.