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The consequences of a more resource efficient and circular economy for international trade patterns: A modelling assessment

Author

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  • Rob Dellink

    (OECD)

Abstract

This report investigates the effects of a resource efficiency and circular economy (RE-CE) transition on international trade flows, using the OECD’s ENV-Linkages model. A global RE-CE policy package will cause secondary materials to become cheaper, while primary materials become more expensive to produce. By 2040, primary non-ferrous metals are projected to decline by 35-50%, primary iron & steel by 15% and primary non-metallic minerals by around 10%. Regional shifts in production and trade-related effects (shifts in the regional sourcing of the primary materials by the materials processing sectors) account for roughly one-third of the total reduction in materials use. The other two thirds of materials use reduction come from scale effects (reduced economic activity) and efficiency effects (reduced materials use per unit of output of the processed commodities).

Suggested Citation

  • Rob Dellink, 2020. "The consequences of a more resource efficient and circular economy for international trade patterns: A modelling assessment," OECD Environment Working Papers 165, OECD Publishing.
    • Handle: RePEc:oec:envaaa:165-en
    DOI: 10.1787/fa01b672-en
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    Cited by:

    1. Daniela Firoiu & Ramona Pîrvu & Elena Jianu & Laura Mariana Cismaș & Sorin Tudor & Gabriela Lățea, 2022. "Digital Performance in EU Member States in the Context of the Transition to a Climate Neutral Economy," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    2. Reyer Gerlagh & Etienne Lorang, 2024. "Material Source and Waste Taxes in Competitive Equilibrium," CESifo Working Paper Series 11091, CESifo.
    3. Jack Barrie & Patrick Schröder, 2022. "Circular Economy and International Trade: a Systematic Literature Review," Circular Economy and Sustainability, Springer, vol. 2(2), pages 447-471, June.

    More about this item

    Keywords

    circular economy; general equilibrium model; resource efficiency; trade and environment;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F18 - International Economics - - Trade - - - Trade and Environment
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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