IDEAS home Printed from https://ideas.repec.org/a/eee/ecomod/v437y2020ics0304380020303690.html
   My bibliography  Save this article

The impact of converting waste into resources on the regional economy, evidence from Poland

Author

Listed:
  • Zając, P.
  • Avdiushchenko, A.

Abstract

Recently, growing interest in the Circular Economy (CE) concept can be observed among scholars and practitioners globally. One CE goal is to increase resource efficiency by converting more waste into resources. The introduction of such changes in the long-term perspective will have an impact on regionals economies. But the exact consequences of these changes are largely unknown and require a specific modelling approach. In this paper, a Dynamic Stochastic General Equilibrium (DSGE) model designed to simulate the expected impact of increased resource efficiency on a regional economy is applied to a regional case study. The model is built on the assumption that a portion of current consumption is returned to producers in the form of supplies later re-used in the production process. The structural parameters of the proposed model were calibrated for Malopolska, a region in southern Poland, and the study used the Bayesian estimation method in this process. Computer simulation confirms the positive impact on the economy by the increase in resource efficiency, which will eventually improve the quality of life of the region's population. According to this study, in the long run, one additional unit of material resulting from recycling is a substitute for four units of raw material. The article proposes to measure the recycling rates as a portion of recovered materials’ value rather than their mass. With this methodology, recycling estimates for the Malopolska region of Poland in 2017 amounts to 48.1%.

Suggested Citation

  • Zając, P. & Avdiushchenko, A., 2020. "The impact of converting waste into resources on the regional economy, evidence from Poland," Ecological Modelling, Elsevier, vol. 437(C).
    • Handle: RePEc:eee:ecomod:v:437:y:2020:i:c:s0304380020303690
    DOI: 10.1016/j.ecolmodel.2020.109299
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0304380020303690
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolmodel.2020.109299?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Roberto Perotti, 2008. "In Search of the Transmission Mechanism of Fiscal Policy," NBER Chapters, in: NBER Macroeconomics Annual 2007, Volume 22, pages 169-226, National Bureau of Economic Research, Inc.
    2. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    3. Findley, David F, et al, 1998. "New Capabilities and Methods of the X-12-ARIMA Seasonal-Adjustment Program: Reply," Journal of Business & Economic Statistics, American Statistical Association, vol. 16(2), pages 169-177, April.
    4. Jordi Galí, 2008. "Introduction to Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework," Introductory Chapters, in: Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework, Princeton University Press.
    5. Anna Avdiushchenko & Paweł Zając, 2019. "Circular Economy Indicators as a Supporting Tool for European Regional Development Policies," Sustainability, MDPI, vol. 11(11), pages 1-22, May.
    6. Lawrence J. Christiano & Martin Eichenbaum & Charles L. Evans, 2005. "Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 1-45, February.
    7. Blanchard, Olivier Jean & Kahn, Charles M, 1980. "The Solution of Linear Difference Models under Rational Expectations," Econometrica, Econometric Society, vol. 48(5), pages 1305-1311, July.
    8. Anna Avdiushchenko, 2018. "Toward a Circular Economy Regional Monitoring Framework for European Regions: Conceptual Approach," Sustainability, MDPI, vol. 10(12), pages 1-26, November.
    9. McGrattan, Ellen R., 1994. "The macroeconomic effects of distortionary taxation," Journal of Monetary Economics, Elsevier, vol. 33(3), pages 573-601, June.
    10. John Y. Campbell & John Cochrane, 1999. "Force of Habit: A Consumption-Based Explanation of Aggregate Stock Market Behavior," Journal of Political Economy, University of Chicago Press, vol. 107(2), pages 205-251, April.
    11. Grigorios L. Kyriakopoulos & Vasilis C. Kapsalis & Konstantinos G. Aravossis & Miltiadis Zamparas & Alexandros Mitsikas, 2019. "Evaluating Circular Economy under a Multi-Parametric Approach: A Technological Review," Sustainability, MDPI, vol. 11(21), pages 1-24, November.
    12. V. V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 2009. "New Keynesian Models: Not Yet Useful for Policy Analysis," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 242-266, January.
    13. Colander,David (ed.), 2006. "Post Walrasian Macroeconomics," Cambridge Books, Cambridge University Press, number 9780521865487, September.
    14. Findley, David F, et al, 1998. "New Capabilities and Methods of the X-12-ARIMA Seasonal-Adjustment Program," Journal of Business & Economic Statistics, American Statistical Association, vol. 16(2), pages 127-152, April.
    15. Kydland, Finn E & Prescott, Edward C, 1982. "Time to Build and Aggregate Fluctuations," Econometrica, Econometric Society, vol. 50(6), pages 1345-1370, November.
    16. Lawrence J. Christiano & Michele Boldrin & Jonas D. M. Fisher, 2001. "Habit Persistence, Asset Returns, and the Business Cycle," American Economic Review, American Economic Association, vol. 91(1), pages 149-166, March.
    17. Paul Welfens & Raimund Bleischwitz & Yong Geng, 2017. "Resource efficiency, circular economy and sustainability dynamics in China and OECD countries," International Economics and Economic Policy, Springer, vol. 14(3), pages 377-382, July.
    18. Hylton Hollander & Rangan Gupta & Mark E. Wohar, 2019. "The Impact of Oil Shocks in a Small Open Economy New-Keynesian Dynamic Stochastic General Equilibrium Model for an Oil-Importing Country: The Case of South Africa," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(7), pages 1593-1618, May.
    19. Olivier Blanchard & Roberto Perotti, 2002. "An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1329-1368.
    20. Alan P. Kirman, 1992. "Whom or What Does the Representative Individual Represent?," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 117-136, Spring.
    21. Mateusz Lewandowski, 2016. "Designing the Business Models for Circular Economy—Towards the Conceptual Framework," Sustainability, MDPI, vol. 8(1), pages 1-28, January.
    22. Lucas, Robert Jr, 1976. "Econometric policy evaluation: A critique," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 1(1), pages 19-46, January.
    23. Colander,David (ed.), 2006. "Post Walrasian Macroeconomics," Cambridge Books, Cambridge University Press, number 9780521684200, September.
    24. Will McDowall & Yong Geng & Beijia Huang & Eva Barteková & Raimund Bleischwitz & Serdar Türkeli & René Kemp & Teresa Doménech, 2017. "Circular Economy Policies in China and Europe," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 651-661, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Agata Mlonka-Mędrala, 2023. "Recent Findings on Fly Ash-Derived Zeolites Synthesis and Utilization According to the Circular Economy Concept," Energies, MDPI, vol. 16(18), pages 1-21, September.
    2. Agata Mesjasz-Lech, 2021. "Municipal Urban Waste Management—Challenges for Polish Cities in an Era of Circular Resource Management," Resources, MDPI, vol. 10(6), pages 1-18, May.
    3. Natālija Cudečka-Puriņa & Dzintra Atstāja & Viktor Koval & Māris Purviņš & Pavlo Nesenenko & Oleksandr Tkach, 2022. "Achievement of Sustainable Development Goals through the Implementation of Circular Economy and Developing Regional Cooperation," Energies, MDPI, vol. 15(11), pages 1-18, June.
    4. Pavlo T. Bubenko & Olena V. Dymchenko & Olha O. Rudachenko & Serhii M. Haidenko & Oleg A. Diegtiar, 2021. "Territorial organization of innovative development: Entrepreneurial aspect of sustainability," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(2), pages 171-185.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. José Luis Torres Chacon, 2015. "Introduction to Dynamic Macroeconomic General Equilibrium Models," Vernon Press Titles in Economics, Vernon Art and Science Inc, edition 2, number 54.
    2. José Luis Torres Chacon, 2015. "Introduction to Dynamic Macroeconomic General Equilibrium Models [Second Edition, Paperback]," Vernon Press Titles in Economics, Vernon Art and Science Inc, edition 2, number 44.
    3. Thomas Brand, 2017. "Vitesse et composition des ajustements budgétaires en équilibre général : une analyse appliquée à la zone euro," Revue économique, Presses de Sciences-Po, vol. 68(HS1), pages 159-182.
    4. Pedro Garcia Duarte, 2012. "Not Going Away? Microfoundations in the Making of a New Consensus in Macroeconomics," Chapters, in: Microfoundations Reconsidered, chapter 6, Edward Elgar Publishing.
    5. Przemysław Włodarczyk, 2016. "Modele reprezentatywnych podmiotów gospodarczych jako narzędzie analizy w nowej syntezie neoklasycznej," Bank i Kredyt, Narodowy Bank Polski, vol. 47(6), pages 553-584.
    6. Pedro Garcia Duarte & Gilberto Tadeu Lima, 2012. "Microfoundations Reconsidered," Books, Edward Elgar Publishing, number 14869.
    7. Adnan Haider Bukhari & Safdar Ullah Khan, 2008. "A Small Open Economy DSGE Model for Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 963-1008.
    8. Andrei Polbin & Sergey Drobyshevsky, 2014. "Developing a Dynamic Stochastic Model of General Equilibrium for the Russian Economy," Research Paper Series, Gaidar Institute for Economic Policy, issue 166P, pages 156-156.
    9. Lim, G.C. & McNelis, Paul D., 2008. "Computational Macroeconomics for the Open Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262123061, April.
    10. Senbeta, Sisay, 2011. "How applicable are the new keynesian DSGE models to a typical low-income economy?," MPRA Paper 30931, University Library of Munich, Germany.
    11. Etro, Federico, 2017. "Research in economics and macroeconomics," Research in Economics, Elsevier, vol. 71(3), pages 373-383.
    12. Celso Jose Costa Junior, 2016. "Understanding DSGE models," Vernon Press Titles in Economics, Vernon Art and Science Inc, edition 1, number 70.
    13. Jean Boivin & Marc P. Giannoni, 2006. "Has Monetary Policy Become More Effective?," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 445-462, August.
    14. Tobón Arias, Alexander, 2022. "La estructura lógica de la teoría del equilibrio general dinámico estocástico," Borradores Departamento de Economía 20477, Universidad de Antioquia, CIE.
    15. Lindé, Jesper & Smets, Frank & Wouters, Rafael, 2016. "Challenges for Central Banks´ Macro Models," Working Paper Series 323, Sveriges Riksbank (Central Bank of Sweden).
    16. Adnan Haider & Musleh ud Din & Ejaz Ghani, 2012. "Monetary Policy, Informality and Business Cycle Fluctuations in a Developing Economy Vulnerable to External Shocks," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 51(4), pages 609-681.
    17. G. Fagiolo & A. Roventini, 2009. "On the Scientific Status of Economic Policy: A Tale of Alternative Paradigms," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 6.
    18. Giorgio Fagiolo & Andrea Roventini, 2017. "Macroeconomic Policy in DSGE and Agent-Based Models Redux: New Developments and Challenges Ahead," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 20(1), pages 1-1.
    19. Sergio Rebelo, 2005. "Real Business Cycle Models: Past, Present, and Future," NBER Working Papers 11401, National Bureau of Economic Research, Inc.
    20. Liu, Zheng & Waggoner, Daniel F. & Zha, Tao, 2007. "Asymmetric Expectation Effects of Regime Shifts and the Great Moderation," Kiel Working Papers 1357, Kiel Institute for the World Economy (IfW Kiel).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecomod:v:437:y:2020:i:c:s0304380020303690. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/ecological-modelling .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.