The effects of treating co-products as waste in input-output impact modelling

Maximilian Koslowski and Edgar G. Hertwich

MPRA Paper from University Library of Munich, Germany

Abstract: Constrained-optimisation techniques are frequently used in input-output impact modelling, usually applied to single-production data. When using joint-production data, one may observe even for a closed economy that more commodities are supplied than used. This begs the question of what should happen with such a commodity surplus as it does not evaporate into thin air. This is particularly interesting from an environmental perspective, since the surplus is an indication of the economy being inefficient. Here, we outline the difficulties of modelling excess commodities as waste, draw links from our proposed model to well-known models found in the literature, and describe what the influence of accounting for secondary products differently would be in terms of modelling outcomes.

Keywords: circular economy; waste input-output analysis; joint-production; free disposal; technology substitution (search for similar items in EconPapers)
JEL-codes: C61 C67 D57 P51 Q53 Q56 (search for similar items in EconPapers)
Date: 2026-05-30
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