Transition from a Linear Economy toward a Circular Economy in the Ramsey Model

Kiyoka Akimoto () and Koichi Futagami
Additional contact information
Kiyoka Akimoto: Graduate School of Economics, Osaka University

No 18-09, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: We construct a Ramsey-type model where households recycle waste generated by con- sumption and the non-recycled waste has negative externality. The aim of this paper is the following two points. Firstly, we examine a structural change process from \a linear economy" based on consumption-disposal toward \a sound material-cycle economy" or \a circular economy" based on consumption-recycling. Secondly, we examine dynamics of op- timal consumption tax and recycling subsidy. Additionally, we discuss the Environmental Kuznets Curve (EKC). Previous theoretical literature explains the mechanism of the EKC through changes in production sectors such as an introduction of abatement technology or technological change. In contrast, this paper tries to explain the EKC through the aforementioned structural change process.

Keywords: Economic growth; Environmental Kuznets Curve; Environmental policies; House- hold waste recycling; Ramsey Model (search for similar items in EconPapers)
JEL-codes: O44 Q53 Q58 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2018-04
New Economics Papers: this item is included in nep-ene, nep-env and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www2.econ.osaka-u.ac.jp/library/global/dp/1809.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1809

Access Statistics for this paper

More papers in Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by The Economic Society of Osaka University ().