- Working Paper
Rights / licenseIn Copyright - Non-Commercial Use Permitted
In this paper we analyze the importance of recycling in the strive for sustainable development. In contrast to former approaches we emphasize the role of the waste stock as a source of valuable inputs. We enhance a Romer (1990) type endogenous growth model by a material balance condition that reflects the circulation of matter in the economy. Diferentiated intermediate products are produced from recycled waste and virgin resources. These material intermediates are then employed in the production of final output. They either end up as waste after consumption or are bound in the capital stock depending on the utilization of the produced output. We show that, even in the absence of environmental policy, long-run development is sustainable in this economy. The intuition is, that, as waste is a valuable resource in our model, not recycling part of it, cannot be optimal in the long-run Show more
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Journal / seriesEconomics Working Paper Series
Pages / Article No.
PublisherETH, Eidgenössische Technische Hochschule Zürich, Institue of Economics Research
SubjectWASTE UTILIZATION + WASTE RECYCLING; endogenous growth; recycling; NICHTERNEUERBARE RESSOURCEN; ABFALLVERWERTUNG + ABFALLRECYCLING; sustainable development; non-renewable resources; ECONOMIC GROWTH; WIRTSCHAFTSWACHSTUM; NON-RENEWABLE RESOURCES
Organisational unit03635 - Bretschger, Lucas / Bretschger, Lucas
02045 - Dep. Geistes-, Sozial- u. Staatswiss. / Dep. of Humanities, Social and Pol.Sc.
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