GTAP Resources: Resource Display
| GTAP Resource #7017 |
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"An economy-wide analysis of the circular economy potential in Germany – Enhancing product longevity and domestic recycling" by Luckmann, Jonas and Gero Elshof Abstract Since the industrial revolution, our economic system has relied on resource exploitation and unsustainable treatment of waste. The circular economy provides an alternative method of producing and consuming commodities, which unites natural boundaries and economic goals. This study explores the potential of the German economy to advance towards a circular economy via the promotion of domestic recycling and repair services using a computable general equilibrium model calibrated to a 2018 social accounting matrix. In the first scenario, domestic recycling is promoted through a tariff of 80% levied on waste exports, using the additional revenue to subsidize the domestic recycling sector. In a second scenario, repair services are subsidized such that the consumer price falls by 50%. The subsidy is financed through an additional tax on the sale of machinery and equipment. The third scenario analyses the effects of regulations promoting the longevity and repairability of electronic products, machinery, and vehicles in industries, exogenously increasing intermediate demand for repair services by 50% and decreasing intermediate demand for electronic products, machinery, and vehicles accordingly. Preliminary findings indicate that a tariff on waste exports leads to a higher recycling rate, but also higher waste disposal costs. Decoupled economic growth is achieved as GDP grows slightly, while greenhouse gas emissions are reduced. The promotion of repair services and the reduced consumption of technical equipment and machinery leads to a shift in the domestic production structure. Capital-intensive industrial sectors shrink, while labor-intensive repair services expand, resulting in higher labour wages relative to capital prices and a reduced demand for energy and resources, which also results in a reduction of greenhouse-gas emissions. All scenarios result in higher self-sufficiency and a decreased reliance on imported resources, which can be seen as an additional advantage. |
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- Environmental policies - Resources and circular economy - Europe (Western) |
| Attachments |
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If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.
Public Access  GTAP Resource 7017-Paper (524.4 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 1:05:45 PM
