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GTAP Resource #7742

"There and Back Again: A Circular Tale in a CGE Model"
Authors: Powell, Rhiain and Hom Pant


Abstract
As global material use is projected to double by 2060, the limitations of linear material use-patterns are becoming increasingly apparent. The ability to model the economic impacts of a circular economy transition will be imperative for many countries, as they enact circular strategies. A major hurdle to modelling the move toward circularity is found in traditional input-output databases. They do not traditionally account for recycling materials and the activity of recycling itself often sits within a broader parent sector, making it hard to disentangle. To address this gap, we have developed a waste-intensity satellite database (using Australia as an example), creating a waste coefficient. This reflects the amount of waste (by material type) generated by each industry and each region within Australia, providing a waste intensity. Using available data from the National Waste and Resource Recovery Database, we have attributed a waste intensity for each material type, industry and State/territory within our CGE database. Our second step has been to disaggregate the GTAP ‘water’ sector to reflect two distinct sectors for the waste sector in addition to water: recovery (the collection and sorting of waste) and disposal (to reflect landfill, incineration and other types of disposal). This will allow us to identify the additional activity and labour required in the sorting of recyclable materials, that will be used as an input into secondary manufacturing sectors. After data collection on the cost structure (including energy inputs), we disaggregate Australia’s iron and steel manufacturing sector into primary and secondary sectors. We also provide a system of equations for integration into CGE models, reflecting the circular economy. With these adaptations to the database and model structure, we will simulate the economic impact of different measures for circularity in Australia.


Resource Details () GTAP Keywords
Category: 2026 Conference Paper
Status: Published
By/In: Presented during the 29th Annual Conference on Global Economic Analysis (Kyoto, Japan)
Date: 2026
Version: 1
Created: Powell, R. (4/13/2026)
Updated: Batta, G. (4/29/2026)
Visits: 45
- Resources and circular economy


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  pdf File format GTAP Resource 7742: Paper  (685.0 KB)   Replicated: 0 time(s)


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Special Instructions
Still a work in progress with several sections to be drafted.


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