 Recycling under a material balance constraintKaren Pittel, Jean-Pierre Amigues and Thomas Kuhn Resource and Energy Economics, 2010, vol. 32, issue 3, 379-394 Abstract: In this paper we analyze the dynamic implications of recycling for resource use, the level of economic activity and the long-run development of the economy. In contrast to former approaches, we take explicit account of the circulation of matter in the economy. We consider virgin resources and recycled wastes as essential inputs to production. These material inputs either end up as waste after consumption or are bound in the capital stock--depending on the utilization of the produced output. As accumulating wastes can be recycled and again be employed in production, the waste stock serves as a source of valuable inputs in our model. We focus on the implications of recycling-related market failures and the integration of material balances on the dynamics of the economy. It is shown that a market for waste and subsidies to resource extractors and recycling firms can restore optimality in the decentralized economy. Keywords: Economic; growth; Exhaustible; resources; Recycling; Externalities (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:32:y:2010:i:3:p:379-394 Access Statistics for this article Resource and Energy Economics is currently edited by J. F. Shogren and S. Smulders More articles in Resource and Energy Economics from Elsevier |
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