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GTAP Resource #6061

"The jobs potential of a transition towards a resource efficient and circular economy"
by Mavroeidi, Eleonora and Jean Chateau

Policies to promote resource efficiency and the transition to a circular economy have become important elements of environmental policy making and green growth, especially in light of the ever-increasing demand for natural resources. Besides the environmental benefits, governments also emphasize the employment benefits that could result from the transition to a more resource-efficient and circular economy.
This paper examines the consequences of a policy-driven transition towards a more resource-efficient and circular economy on labour markets and employment levels across countries and sectors in the coming decades. The analysis is based on a computable general equilibrium model, which was enhanced to include projections of materials use. The results suggest that although the overall reallocation of jobs due to the policy package is limited, it exhibits large variations across economies and sectors. Across OECD and BRIICS economies, countries with large extraction sectors face a larger number of job destructions compared to job creations, primarily because their economic structure is more material intensive both in terms of sectoral composition of GDP and in terms of production structure. On the sectoral level, secondary materials and recyclable sectors benefit with large employment increases, while primary material and sectors heavily dependent on primary materials experience job losses. Finally, in the case where non-OECD economies opt out of the implementation of resource efficiency and circular economy policies, OECD countries experience employment losses compared to the global implementation scenario due to relative loss of competitiveness.

Resource Details (Export Citation) GTAP Keywords
Category: 2020 Conference Paper
Status: Published
By/In: Presented during the 23rd Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 2020
Version: 2
Created: Chateau, J. (4/15/2020)
Updated: Chateau, J. (10/7/2020)
Visits: 1,344
- Dynamic modeling
- Economic growth
- Labor market issues

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Posted by: Chateau, Jean   10/7/2020 4:04:00 PM
Final Version