RT Journal Article
T1 The circular economy and the optimal recycling rate: a macroeconomic approach
A1 Bongers-Chicano, Aneli María
A1 Casas, Pablo
K1 Macroeconomía
K1 Consumo
K1 Reciclaje --  Aspectos económicos
K1 Recursos naturales
K1 Economía circular
AB This paper studies the economic implications of the circular economy and recycling activities from a macroeconomic perspective. The paper incorporates the circular economy into an otherwise standard neoclassical dynamic general equilibrium linear economy model, in which the production function depends on capital, labor, and raw materials. Raw materials are a composite of natural resources (the linear economy) and recycled material (the circular economy). Waste is a function of consumption but can be incorporated back into production activities through recycling. We find the existence of a positive S-shaped relationship between the optimal recycling rate and economic development, indicating that increasing the circularity of the economy is a necessary condition to augment social welfare in a growing economy. The optimal recycling rate depends positively on the pollution damage and waste content of final consumption goods. Simulation of the model supports the existence of a steady-state Environmental Kuznets Curve (EKC) relationship between the stock of waste and the output in the presence of a circular economy. Finally, we find that while a permanent improvement in recycling technology has positive effects on output, expanding the circularity of the economy, an increase in the cost of natural material has harmful effects on output, increasing waste accumulation and reducing recycling.
PB Elsevier
YR 2022
FD 2022-06-06
LK https://hdl.handle.net/10630/26332
UL https://hdl.handle.net/10630/26332
LA eng
NO Bongers, A., & Casas, P. (2022). The circular economy and the optimal recycling rate: A macroeconomic approach. Ecological Economics, 199, 107504.
NO Funding for open access charge: Universidad de Málaga / CBUA
DS RIUMA. Repositorio Institucional de la Universidad de Málaga
RD 20 ene 2026