The macroeconomics of the circular economy transition: a critical review of modelling approaches

"The focus of this paper is to review the literature on the [...] macroeconomic implications of the transition to a more circular economy and increased efficiency in the use of material resources. Addressing this issue is complex. Any such transition will involve multiple interactions between different sectors and countries, and will take place parallel with other trends like digitalisation and automation. Ex ante, economy-wide quantatitve models apppear to be best suited to analysing this transition as they capture the major drivers of economic consequences. Furthermore, there is insufficient ex-post data on the consequences of circular economy enabling policies for a robust empirical assessment. As such, the analysis in this paper is restricted to studies that have used macroeconomic models. However, in this context, such models are only recently emerging; 15 of 24 studies considered are either currently in progress or were published since 2015." (p. 4)



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Andrew MacCarthy, Rob Dellink

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