A dynamic model of recycling with endogenous technological breakthrough

Lafforgue, Gilles; Rougé, Luc

doi:10.1016/j.reseneeco.2019.04.002

Cited by 12 publications

(5 citation statements)

References 17 publications

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“…Assuming that the welfare and Hamiltonian functions are continuous and differentiable the point of time t = T at which occur the switch of regime, represent a fix point of the function (Boucekkine and Pommeret, 2004). In the economic literature this switching point in the regime of the use of exhaustible natural resource is sometimes assumed to be existing (Boucekkine et al 2013, Lafforgue andRouge, 2019), in other research it is estimated using values of parameters (Agliardi and Allevi 2013), or it is calculated ( (Boucekkine and Pommeret, 2004, and Boucekkine et al 2013). Malcomson (1975 states: " … However, as it stands, it is not possible to derive an explicit expression for T(t) in terms of the known parameters and functions only.…”

Section: Using the Parameter Listed Inmentioning

confidence: 99%

Obsolete Solar Panels Recycling and Economic Growth

Vita

2023

Preprint

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In this paper we investigate the impact of obsolete solar panels recycling on the economic growth rate and the optimal time of depletion of exhaustible resource. Using a simple growth model where the solar panels constitutes the physical capital, the labor and exhaustible resource, we study how the recycling of obsolete solar panels impacts the growth rate and the optimal exhaustion time of this kind of natural input. The optimal switching point of time is derived, from the regime where primary and secondary input are used together, to the regime in which the exhaustible resource is completely depleted and only secondary material is used. JEL classification: O44; Q32.

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Section: Using the Parameter Listed Inmentioning

confidence: 99%

Obsolete Solar Panels Recycling and Economic Growth

Vita

2023

Preprint

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“…However we can also add the following Proposition: two opposite motivations for the producer justify the choice of perfect substitutes. Moreover, technological progress in recycling tends to reach the same quality for virgin and recycled inputs [22].…”

Section: Decoupling Emissions Of the Recycling Branchmentioning

confidence: 99%

Recycling under environmental, climate and resource constraints

Lafforgue

Lorang

2022

Resource and Energy Economics

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We study the recycling opportunity of an industrial sector constrained by climate, resource and waste capacities. A final good is produced from virgin and recycled materials, and its consumption releases both waste and GHG emissions. We identify the optimal trajectories of resources use, mainly depending on the emission rates of each resource and on the relative scarcity of their stocks. Recycling is sometimes an opportunity to reduce the impact of consumption on primary resources and waste but can still affect the environment. We characterize the optimal recycling strategy and we show that, in some cases, the time pace of the recycling rate is inverted U-shaped. Last, we discuss the policy implications of our model by identifying and analyzing the set of optimal tax-subsidy schemes.

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“…While they consider an exogenous and constant recycling effort, we characterize the optimal dynamic choice of the rate at which to recycle the depreciated share of green capital. The dynamics of recycling activities have been widely studied, as, for instance, in the context of waste accumulation (Smith, 1972), of resource depletion (Weinstein and Zeckhauser, 1973), of capital accumulation (Boucekkine and El Ouardighi, 2016) or of sector-specific technological progress (Lafforgue and Rouge, 2019). As far as we know this is the first paper to consider endogenous recycling in the context of the energy transition.…”

Section: Introductionmentioning

confidence: 99%

Critical raw materials for the energy transition

Pommeret

Ricci²,

Schubert³

2022

European Economic Review

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Renewable energy generation and storage requires specialized capital goods, embedding critical raw materials (CRM). The scarcity of CRM therefore affects the transition from a fossil based energy system to one based on renewables, necessary to cope with climate change. We consider the issue in a theoretical model, where we allow for a very costly potential substitute, reflecting a backstop technology, and for partial and costly recycling of materials in capital goods. We characterize the main features of the efficient energy transition, and their dependence on the relative abundance of CRM and on the recycling technology. Recycling reduces the cost of the transition. It also calls for having a large stock of recyclable CRM embedded in specialized capital at the time of adoption of the backstop technology. Moreover, we consider constraints on policy tools and myopic regulation, and show how abstracting from the scarcity of CRM, or tightly linking subsidies for renewables to the carbon tax revenue, is misleading in designing climate policy.

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A dynamic model of recycling with endogenous technological breakthrough

Cited by 12 publications

References 17 publications

Obsolete Solar Panels Recycling and Economic Growth

Obsolete Solar Panels Recycling and Economic Growth

Recycling under environmental, climate and resource constraints

Critical raw materials for the energy transition

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