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Recycling under environmental, climate and resource constraints

Gilles Lafforgue () and Etienne Lorang ()

No 2020.10, Working Papers from FAERE - French Association of Environmental and Resource Economists

Abstract: We study the recycling opportunity of an industrial sector constrained by climate, resource and waste capacities. A final good is produced from virgin and recycled materials, and its consumption releases both waste and GHG emissions. We identify the optimal trajectories of resources use, mainly depending on the emission rates of each resource and on the relative scarcity of their stocks. Recycling is sometimes an opportunity to reduce the impact of consumption on primary resources and waste but can still affect the environment. We characterize the optimal recycling strategy and we show that, in some cases, the time pace of the recycling rate is inverted U-shaped. Last, we discuss the policy implications of our model by identifying and analyzing the set of optimal tax-subsidy schemes.

Keywords: Recycling; Resource extraction; Waste; GHG emissions (search for similar items in EconPapers)
JEL-codes: Q32 Q53 Q54 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2020-04
New Economics Papers: this item is included in nep-ene, nep-env and nep-res
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Downloads: (external link)
http://faere.fr/pub/WorkingPapers/Lafforgue_Lorang_FAERE_WP2020.10.pdf First version, 2020 (application/pdf)

Related works:
Journal Article: Recycling under environmental, climate and resource constraints (2022) Downloads
Working Paper: Recycling under environmental, climate and resource constraints (2022)
Working Paper: Recycling under environmental, climate and resource constraints (2020) Downloads
Working Paper: Recycling under environmental, climate and resource constraints (2020) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:fae:wpaper:2020.10

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