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Recycling under environmental, climate and resource constraints

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  • Lafforgue, Gilles
  • Lorang, Etienne

Abstract

We study the recycling opportunity of an industrial sector constrained by climate, resource and waste capacities. A final good is produced from virgin and recycled materials, and its consumption releases both waste and GHG emissions. We identify the optimal trajectories of resources use, mainly depending on the emission rates of each resource and on the relative scarcity of their stocks. Recycling is sometimes an opportunity to reduce the impact of consumption on primary resources and waste but can still affect the environment. We characterize the optimal recycling strategy and we show that, in some cases, the time pace of the recycling rate is inverted U-shaped. Last, we discuss the policy implications of our model by identifying and analyzing the set of optimal tax-subsidy schemes.

Suggested Citation

  • Lafforgue, Gilles & Lorang, Etienne, 2020. "Recycling under environmental, climate and resource constraints," TSE Working Papers 20-1125, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:124456
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    Cited by:

    1. Reni Pantcheva, 2023. "Circular Use of Materials: Drivers of the Circularity Rate in the European Union," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 148-161.
    2. Etienne Lorang & Antonello Lobianco & Philippe Delacote, 2021. "Sectoral, resource and carbon impacts of increased paper and cardboard recycling," Working Papers 2021.12, FAERE - French Association of Environmental and Resource Economists.
    3. Ba, Bocar Samba & Soubeyran, Raphael, 2023. "Hotelling and recycling," Resource and Energy Economics, Elsevier, vol. 72(C).

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    More about this item

    Keywords

    Recycling; Resource extraction; Waste; GHG emissions.;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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