IDEAS home Printed from https://ideas.repec.org/p/idn/wpaper/wp142022.html
   My bibliography  Save this paper

Green Transition Risks On Export Competitiveness: Circular Economy Approach

Author

Listed:
  • Arnita Rishanty

    (Bank Indonesia)

  • Maxensius Tri Sambodo

    (Badan Riset dan Inovasi Nasional)

  • Retno Puspita K. Wicaksono

    (Bank Indonesia)

Abstract

Transition risks include market and reputational risks, if materialized, can result in loss of markets. This study pictures the dynamics of potential export market movement and transition as the consumer preference for green products grows globally. We find that the export market for Indonesia’s superior commodities increased due to past global growth and past increase in global demand for particular products, while still lacking in real product competitiveness. Under the scenario that illustrates the green agenda only arise mostly from developed countries and still limited from developing countries, it is estimated that the export market transition towards the new balance would find an equilibrium. Subsequently, this study exploratively discusses undergoing efforts in the exporting industry to make a green transition. We elaborate opportunities and challenges to circular economy adoption for the exporting industry. It is suggested for Indonesia' s trade diplomacy to not only maintaining market position in traditional markets, but also in seizing non-traditional markets, including markets that reject Indonesian products by improving the competitiveness of Indonesia's export products via circular economy adoption.

Suggested Citation

  • Arnita Rishanty & Maxensius Tri Sambodo & Retno Puspita K. Wicaksono, 2022. "Green Transition Risks On Export Competitiveness: Circular Economy Approach," Working Papers WP/14/2022, Bank Indonesia.
    • Handle: RePEc:idn:wpaper:wp142022
    as

    Download full text from publisher

    File URL: http://publication-bi.org/repec/idn/wpaper/WP142022.pdf
    File Function: First version, 2022
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Circular economy; Markov Model; competitiveness; green taxonomy;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idn:wpaper:wp142022. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lutzardo Tobing or Jimmy Kathon (email available below). General contact details of provider: https://edirc.repec.org/data/bigovid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.