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SESSION 4_Alexandre Godzinski_Circular Economy- CIRCLE workshop Oct. 2014

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SESSION 4_Alexandre Godzinski_Circular Economy- CIRCLE workshop Oct. 2014

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SESSION 4_Alexandre Godzinski_Circular Economy- CIRCLE workshop Oct. 2014

  1. 1. 1 2 October 2014 Second ad-hoc technical workshop on CIRCLE Alexandre Godzinski French Ministry of Sustainable Development Circular Economy: A Computable General Equilibrium Approach
  2. 2. 2 Model: why, how and what for •Motivation: explore and evaluate different instruments related to material efficiency and waste treatment in France •Computable general equilibrium model which includes: –Material flows (virgin ore extraction, material in final products, waste, scrap metal) –Material stocks (ore in the ground, productive capital stock, landfill stock) •Stylized tool to assess policies related to material efficiency and waste management, which are usually studied separately •Model under construction! At the moment: –World divided into two regions: France and the rest of the world –Only one material: steel •Output variables: –Waste treatment (recycling rate, volume going to landfill…) –Material efficiency (material productivity…) –Usual economic outputs (GDP, consumption…)
  3. 3. 3 Household Generic good Mines Consumption Primary material Waste treatment service Waste treatement Landfill Recycling Investment Physical flows Linear economy
  4. 4. 4 Household Generic good Mines Consumption Waste treatement Landfill Recycling Investment Circular economy Waste treatment service Secondary material Physical flows
  5. 5. 5 Model structure Household Generic good Mines Consumption Primary material Secondary material Waste treatment service Capital Labor Waste treatment Landfill Recycling Investment
  6. 6. 6 Application: reducing the volume of waste going to landfill We consider two polar strategies: •Taxing materials (both primary and secondary), so that final goods contain less material. •Taxing landfill, so that more waste is recycled.
  7. 7. 7 Tax on materials 024681012141618200%50%100%150%200% Tax rate Volume of waste (million tons of steel) Volume of waste recycledVolume of waste going to landfill
  8. 8. 8 Tax on landfill 024681012141618200%50%100%150%200% Tax rate Volume of waste (million tons of steel) Volume of waste recycledVolume of waste going to landfill
  9. 9. 9 Thank you for your attention Comments welcome

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