This study aims at integrating a materials flow model into an economic model, such that the economic effects of policies on the use materials and products can be analysed. Methods for studying materials and product flows do not properly take into account economic, behavioural or policy aspects. But most economic models do not consider material flows explicitly. To analyse the economic effects an applied general equilibrium (AGE) model is used. The main advantage is that full direct and indirect effects of policies can be analysed. A disaggregated model is used to examine the effects of materials and product policies on various production sectors, households groups, employment and the use of materials. The model is applied to metal flows in the Netherlands. The results show that the effects of a regulating levy on materials may be large for some production sectors, depending on where in the production process the levy is imposed. The basic metal industry and large metal using production sectors may be negatively affected by metal levies. Positive effects of the levies occur for other production sectors, for example the basic chemical industries and the petroleum refineries. In most scenarios, the labour income households can improve their real income, whilst the households of transfer recipients observe a fall in real income. However, for most production sectors and household groups the effects are small. No ‘double dividend’ is found in the various scenarios.
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