From the Linear Economy to the Circular Economy: A Basic Model
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From the Linear Economy to the Circular Economy : A Basic Model. / Sørensen, Peter Birch.
In: Finanzarchiv, Vol. 74, No. 1, 01.03.2018, p. 71-87.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - From the Linear Economy to the Circular Economy
T2 - A Basic Model
AU - Sørensen, Peter Birch
PY - 2018/3/1
Y1 - 2018/3/1
N2 - This paper sets up a Ramsey model with natural resources to study the optimal recycling of polluting raw materials. Under plausible conditions it is optimal for the economy to go through an initial linear phase with no recycling followed by a circular phase where a fraction of materials is recycled to alleviate growing natural resource scarcity and environmental degradation. In the presence of a Pigouvian tax on nonrecycled materials a competitive market economy will ensure the optimal degree of recycling.
AB - This paper sets up a Ramsey model with natural resources to study the optimal recycling of polluting raw materials. Under plausible conditions it is optimal for the economy to go through an initial linear phase with no recycling followed by a circular phase where a fraction of materials is recycled to alleviate growing natural resource scarcity and environmental degradation. In the presence of a Pigouvian tax on nonrecycled materials a competitive market economy will ensure the optimal degree of recycling.
KW - Faculty of Social Sciences
KW - circular economy
KW - linear economy
KW - optimal recycling
KW - Hotelling rule
KW - Pigouvian taxation
U2 - 10.1628/001522118X15097191506475
DO - 10.1628/001522118X15097191506475
M3 - Journal article
VL - 74
SP - 71
EP - 87
JO - FinanzArchiv
JF - FinanzArchiv
SN - 0015-2218
IS - 1
ER -
ID: 214826838