Resident support for financial incentives in domestic mineral extraction: Evidence from an experimental survey in major US mineral-producing states

Abstract

Several jurisdictions deploy a variety of policy incentives to strengthen the domestic supply chain of minerals and metals needed for the energy transition. However, the public's stance towards using financial incentives (e.g., tax credits) to promote domestic mining and mineral extraction is poorly understood. We administered an experimental survey on 1850 US residents in the top five mineral-producing states: Arizona, Nevada, Minnesota, California, and Texas. The five states are leaders in non-fuel mineral production value, representing regions which stand to benefit the most from mining activities and hence residents’ sentiments could shape policy discussions. Our goal is to understand factors that drive support for policies that promote innovative mineral extraction technologies. The experimental design enables us to study whether individuals would support mining policies when provided with additional information that the incentives would promote environmentally friendly or cost-effective technologies. The survey shows that (1) 58 % of all respondents would support policies promoting innovative mining technologies, (2) 69 % prefer minerals to be sourced from environmentally and socially responsible sources, while 15 % preferred domestic sources, and (3) only 10 % are familiar with energy transition minerals. Regression results suggest that concern for environmental impacts, lack of trust in the mining industry, and preference for using private rather than government funds, would reduce the extent of support for policies that use financial incentives to promote innovative mining technologies. Factors correlated with a higher level of support are ambition for the country's global position in energy transition, mineral independence, and preference for domestic mineral sourcing. Individuals in the treatment group provided with additional information that financial incentives would promote environmentally friendly mining technologies have a higher extent of support.