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A dynamic model of recycling with endogenous technological breakthrough

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  • Lafforgue, Gilles
  • Rouge, Luc

Abstract

We develop a growth model in which the use of a non-renewable resource yields waste. Recycling waste produces materials of poor quality. These materials can be reused for production only once a dedicated R&D activity has made their quality reach an exogenous minimum threshold. The economy then switches to a fully recycling regime. We refer to this switch as the technological breakthrough.

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  • Lafforgue, Gilles & Rouge, Luc, 2019. "A dynamic model of recycling with endogenous technological breakthrough," Resource and Energy Economics, Elsevier, vol. 57(C), pages 101-118.
    • Handle: RePEc:eee:resene:v:57:y:2019:i:c:p:101-118
    DOI: 10.1016/j.reseneeco.2019.04.002
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    15. Peter Birch Sørensen, 2017. "The Basic Environmental Economics of The Circular Economy," EPRU Working Paper Series 17-04, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    16. Di Vita, Giuseppe, 2007. "Exhaustible resources and secondary materials: A macroeconomic analysis," Ecological Economics, Elsevier, vol. 63(1), pages 138-148, June.
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    Cited by:

    1. Lafforgue, Gilles & Lorang, Etienne, 2022. "Recycling under environmental, climate and resource constraints," Resource and Energy Economics, Elsevier, vol. 67(C).
    2. Etienne Lorang & Antonello Lobianco & Philippe Delacote, 2023. "Increasing Paper and Cardboard Recycling: Impacts on the Forest Sector and Carbon Emissions," Post-Print hal-04690101, HAL.
    3. Pommeret, Aude & Ricci, Francesco & Schubert, Katheline, 2022. "Critical raw materials for the energy transition," European Economic Review, Elsevier, vol. 141(C).
    4. Fabre, Adrien & Fodha, Mouez & Ricci, Francesco, 2020. "Mineral resources for renewable energy: Optimal timing of energy production," Resource and Energy Economics, Elsevier, vol. 59(C).
    5. Marcelo Arbex & Zachary Mahone, 2024. "Materials, Technology and Growth: Quantifying the Costs of Circularity," Department of Economics Working Papers 2024-06, McMaster University.
    6. Zhou, Sophie & Smulders, Sjak, 2021. "Closing the loop in a circular economy: Saving resources or suffocating innovations?," European Economic Review, Elsevier, vol. 139(C).
    7. 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.
    8. Silvia Bertarelli & Chiara Lodi & Stefania Ragni, 2022. "An optimal strategy to control mining and recycling of non-renewable resources," Working Papers 2202, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2022.
    9. Diana Roa & Knut Einar Rosendahl, 2023. "Policies for Material Circularity: the Case of Lithium," Circular Economy and Sustainability, Springer, vol. 3(1), pages 373-405, March.
    10. Jin, Wei, 2021. "Path dependence, self-fulfilling expectations, and carbon lock-in," Resource and Energy Economics, Elsevier, vol. 66(C).
    11. Compagnoni, Marco & Stadler, Manfred, 2021. "Growth in a circular economy," University of Tübingen Working Papers in Business and Economics 145, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    12. Mazzarano, Matteo, 2022. "Material governance and circularity policies: How waste policies and innovation affect household appliances' accumulation," Ecological Economics, Elsevier, vol. 200(C).

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    More about this item

    Keywords

    Recycling; Non-renewable resource; Technical change; Growth;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • 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

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