Program > Program by speaker > Akimoto Kiyoka

Transition from a Linear Economy toward a Circular Economy in the Ramsey Model
Kiyoka Akimoto  1@  , Koichi Futagami@
1 : Graduate School of Economics Osaka University  -  Website
1-7, Machikaneyama, Toyonaka, Osaka 560-0043 -  Japan

We construct a Ramsey-type model where households recycle waste generated by con-
sumption 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 Environmen-
tal 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.


Online user: 1