Tuesday 13
C2 - Environment III
Chair: Justin Leroux
› 9:00 - 9:25 (25min)
› Room 521 - L. Jouvet
Transition from a Linear Economy toward a Circular Economy in the Ramsey Model
Kiyoka Akimoto  1@  , Koichi Futagami  2@  
1 : Graduate School of Economics Osaka University  -  Website
1-7, Machikaneyama, Toyonaka, Osaka 560-0043 -  Japan
2 : Graduate School of Economics, Osaka University

We construct a Ramsey-type model where households recycle waste generated by consumption and the not recycled waste has negative externality. The aim of this paper is the following two points. First, 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; Second, we examine dynamics of optimal consumption tax and recycling subsidy. In addition, we discuss the Environmental Kuznets Curve(EKC). Previous theoretical literature explains mechanism of EKC by changes in production sectors: such as an abatement technology or technological change. In contrast, this paper tries to show EKC through the aforementioned structural change process.



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