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GTAP Resource #5826

"The macroeconomic consequences of decoupling materials use"
by Bibas, Ruben, Jean Chateau, Elisa Lanzi and Rob Dellink

Economies increasingly rely on natural resources, following rising demands of a world population headed to more than 9 billion people by 2050 and the on-going quest for higher material living standards in many regions. Governments aim to move towards a more resource efficient and circular economy with the aim to address environmental concerns as well as social and economic ones. Circular economy and resource efficiency enabling policies are likely going to result in significant structural changes in the economy, leading to the decline of certain activities and the rise of others, with a reallocation of capital and labour along the way.

This paper analyses the macroeconomic consequences of a policy package aimed at improving resource efficiency and transitioning to a more circular economy. The analysis is based on a computable general equilibrium model, which was enhanced to include projections of materials use. Draft results show that the policy package can achieve a reduction of substantial global materials use, with consequent environmental benefits, while hardly affecting GDP and employment.

Resource Details (Export Citation) GTAP Keywords
Category: 2019 Conference Paper
Status: Published
By/In: Presented at the 22nd Annual Conference on Global Economic Analysis, Warsaw, Poland
Date: 2019
Created: Bibas, R. (4/15/2019)
Updated: Batta, G. (4/15/2019)
Visits: 1,133
- Dynamic modeling
- Economic development

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