Is all that now glitters sufficient? An investigation of a gold resource cap in Australia

Caps aiming to reduce the consumption and extraction of resources with high environmental impact have been proposed, particularly from within the degrowth literature. Yet little empirical work has been undertaken investigating how caps could be implemented, the form they may take, and their likely impact. This article bridges this gap by empirically investigating a resource cap on gold in Australia through a material flow analysis and an investigation of different gold cap scenarios. It was found that both gold extraction, and extraction and import, caps are policy options worth exploring. A gold cap in Australia would have the potential for regional environmental benefits beyond Australia, and would increase gold circularity through incentivising the repurposing of gold bullion for productive uses. This case study progresses the literature through demonstrating that resource caps are a feasible policy option for reducing resource consumption. • Despite high environmental impact gold is mostly used for finance or jewellery. • Extraction can be reduced as recycling sufficient for technology and industry. • This article investigates applying resource caps to limit gold extraction. • Based on a material flow analysis of gold in Australia. • Cap design can lead to significantly varying sectoral and international impacts.