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Corrigendum to “The circular economy and the optimal recycling rate: A macroeconomic approach” [Volume 199, September 2022, 107504]

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  • Bongers, Anelí
  • Casas, Pablo

Abstract

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.
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Suggested Citation

  • Bongers, Anelí & Casas, Pablo, 2022. "Corrigendum to “The circular economy and the optimal recycling rate: A macroeconomic approach” [Volume 199, September 2022, 107504]," Ecological Economics, Elsevier, vol. 201(C).
  • Handle: RePEc:eee:ecolec:v:201:y:2022:i:c:s0921800922002464
    DOI: 10.1016/j.ecolecon.2022.107584
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    References listed on IDEAS

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    1. Brian Chi-ang Lin, 2020. "Sustainable Growth: A Circular Economy Perspective," Journal of Economic Issues, Taylor & Francis Journals, vol. 54(2), pages 465-471, April.
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    Cited by:

    1. Mari-Isabella Stan, 2022. "An Analysis of the Municipal Waste Management of Romania and Bulgaria in the European Context," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 166-174, September.

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    More about this item

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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