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Measuring the Effects of Increasing Circularity in the Economy Through Recycling

Author

Listed:
  • Carlos A. Romero

    (CONICET-Universidad de Buenos Aires)

  • Sofia Rojo Brizuela

    (Based On Argentina)

  • Gustavo Ferro

    (Universidad del CEMA (UCEMA) and CONICET)

Abstract

The circular economy is a productive and consumption paradigm, aimed at reducing resource utilization and waste generation. By looping materials and resources and extending the life cycle of durable goods, the environmental impact of human activities is reduced. This paper contributes to understanding the effects of the increment of recycling activities (a subset of circular activities), on production, employment, and the environment in a developing country with a large informal labor sector. The analysis is based on an enhanced input-output matrix or waste input-output matrix (WIO), within a hybrid (including monetary and physical transactions) model accounting for the recycling sectors interlinking with the rest of the economy and final consumption. The study quantifies some of the effects of accomplishing the Paris Agreement Commitments recycling goals, showing emission reductions and job creation in the recycling sector. Also, the results show not-so-obvious effects of partial substitution of virgin raw material production by recycled materials, on total employment quantity and quality (gender, age, or formality composition) in the context of a prevalent informal labor market in recycling activities.

Suggested Citation

  • Carlos A. Romero & Sofia Rojo Brizuela & Gustavo Ferro, 2024. "Measuring the Effects of Increasing Circularity in the Economy Through Recycling," Circular Economy and Sustainability, Springer, vol. 4(1), pages 503-522, March.
    • Handle: RePEc:spr:circec:v:4:y:2024:i:1:d:10.1007_s43615-023-00299-6
    DOI: 10.1007/s43615-023-00299-6
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    References listed on IDEAS

    as
    1. Doussoulin, Jean Pierre & Bittencourt, Mariana, 2022. "How effective is the construction sector in promoting the circular economy in Brazil and France? : A waste input-output analysis," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 47-58.
    2. Maja Wiprächtiger & Melanie Haupt & Andreas Froemelt & Magdalena Klotz & Claudio Beretta & Dominik Osterwalder & Vanessa Burg & Stefanie Hellweg, 2023. "Combining industrial ecology tools to assess potential greenhouse gas reductions of a circular economy: Method development and application to Switzerland," Journal of Industrial Ecology, Yale University, vol. 27(1), pages 254-271, February.
    3. Andrew McCarthy & Rob Dellink & Ruben Bibas, 2018. "The Macroeconomics of the Circular Economy Transition: A Critical Review of Modelling Approaches," OECD Environment Working Papers 130, OECD Publishing.
    4. Ferrão, Paulo & Ribeiro, Paulo & Rodrigues, João & Marques, Alexandra & Preto, Miguel & Amaral, Miguel & Domingos, Tiago & Lopes, Ana & Costa, e Inês, 2014. "Environmental, economic and social costs and benefits of a packaging waste management system: A Portuguese case study," Resources, Conservation & Recycling, Elsevier, vol. 85(C), pages 67-78.
    5. Shinichiro Nakamura & Yasushi Kondo, 2002. "Input‐Output Analysis of Waste Management," Journal of Industrial Ecology, Yale University, vol. 6(1), pages 39-63, January.
    6. Christian Reynolds & Julia Piantadosi & John Boland, 2014. "A Waste Supply-Use Analysis of Australian Waste Flows," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 3(1), pages 1-16, December.
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    More about this item

    Keywords

    Circular economy; Input-output analysis; Recycling; Paris Agreement; Environment;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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