CIRCEE - Revision history

Darius.corbier at 14:09, 2 May 2024

2024-05-02T14:09:03Z

← Older revision		Revision as of 16:09, 2 May 2024
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	====Refinement process ====		====Refinement process ====
	CIRCEE ~~can be improved by including results from additional bottom-up models~~. ~~The results~~ can ~~be used to refine~~ the ~~calibration~~ of ~~CIRCEE or integrate other circular economy techniques~~ that ~~are currently unavailable~~ in CIRCEE ~~due to insufficient data~~ and ~~literature on the subject. For instance~~, detailed ~~bottom~~-up models for ~~crucial sectors, such as transport~~ and ~~construction, can be soft~~-~~linked to CIRCEE model to improve its capabilities in evaluating~~ circular economy ~~(CE)~~ strategies.		The current version of CIRCEE does not account for endogenous green product design. Even though, behavioural plasticities can enable many different circular economy strategies, they also rely on the availability of design technology aiming at extending the lifespan of the products. Future versions should consider incorporating these aspects, especially considering that an increased EPR fee might lead producers to innovate in product design, favoring more sustainable and cost-effective production methods. This would necessitate a disaggregated representation of products in CIRCEE, focusing on key designs (repairability and durability) that dictate green product design, and could involve linking detailed, product-focused models with CIRCEE for a broader understanding of potential synergies and trade-offs between demand- and supply-side circular economy strategies.

	~~For example~~, ~~within~~ CIRCEE, the ~~rates~~ of ~~housing depreciation~~, ~~housing demolition~~, and ~~waste generated from demolition are derived from~~ the ~~bottom-up model simulation~~ of ~~building demand by Deetman et al~~. ~~(2020). This bottom-up model captures various intricacies~~ of the ~~building sector that CIRCEE cannot~~, such as the ~~influence~~ of ~~factors like floor space demand~~, ~~urbanization~~, ~~national building codes~~, and ~~refurbishing rates~~ on ~~total building demand~~ and the ~~demolition~~ of ~~buildings. These factors directly affect~~ the ~~generation~~ of ~~construction~~ and ~~demolition waste~~ and ~~building demand in~~ CIRCEE, which ~~impacts material~~ and ~~energy demand~~, ~~thereby influencing GHG emissions~~.		In addition, incorporating endogenous technological advancements toward increasing material productivity and recycling quality into the CIRCEE model depends on the accessibility of comprehensive and detailed data. This endogenous representation of technical change for material productivity and recycling quality in macroeconomic and integrated assessment models is, to our knowledge, nonexistent. To effectively integrate these advancements, the model requires open data on patents and R&D investments directed toward enhancing material productivity and the quality of recycled materials. Data on patents, and on their impact of material input mid in manufacturing processes, can reveal the direction of innovation and provide insight into future market trends regarding material efficiency and recycling technologies. Similarly, R \& D investment data can indicate the commitment and potential of industries to adopt such technologies. However, this also demands in-depth industrial surveys to assess the availability, cost, and efficacy of existing and emergent recycling technologies.

			Furthermore, a better understanding of the dynamics between primary and secondary markets is vital. This includes understanding pricing mechanisms, demand and supply fluctuations, and substitution elasticity between primary (virgin) and secondary (recycled) materials. Clarity in how these markets interact and operate will provide a starting point for assessing how technological changes can affect market balances and recycling behaviors.

			The advancement of CIRCEE depends on open access to comprehensive datasets and sufficient funding to study the multifaceted aspects of a circular economy, from the micro-level specifics of green product design to the macro-level implications for resource efficiency and economic growth. Securing dedicated funding is critical to support the extensive data collection and surveys necessary to develop these model components. As CIRCEE is an open-source model, it can greatly benefit from the support of a research community, which allow for such collaborative development through shared knowledge and resources. Such a model would provide policymakers with valuable insights, enabling them to make well-informed decisions that balance the various synergies and trade-offs of circular economy strategies.

	==== Integration====		==== Integration====
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	# CIRCEE's current version includes exogenously technological change that is directed towards improving material productivity and recycling quality. A future version will include an endogenous representation of this technological change;		# CIRCEE's current version includes exogenously technological change that is directed towards improving material productivity and recycling quality. A future version will include an endogenous representation of this technological change;
	# CIRCEE's stable version does not include second-hand markets, though an unstable version exists. The future stable version will enable the exchange of durable goods in second-hand markets;		# CIRCEE's stable version does not include second-hand markets, though an unstable version exists. The future stable version will enable the exchange of durable goods in second-hand markets;
	#~~The current~~ version of CIRCEE ~~incorporates two forms~~ of ~~waste management, namely recycling and incineration/landfill. However, there is currently no connection between incineration in CIRCEE~~ and ~~the energy-technology module of WITCH. In a future version, a new energy technology related to waste incineration will be added to the WITCH module~~.		#A future version of CIRCEE will include endogenous green product design under the presence of circular services markets (repairing and sharing markets).

	== References ==		== References ==

Darius.corbier: /* CE strategies and connection with climate change mitigation. */

2024-05-02T14:05:12Z

CE strategies and connection with climate change mitigation.

← Older revision		Revision as of 16:05, 2 May 2024
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	===CE strategies and connection with climate change mitigation.===		===CE strategies and connection with climate change mitigation.===
	[[CIRCEE]] ~~integrates~~ exogenous instruments, depending on different narratives, to help the economy to circularity. Each instrument has a direct (★) or indirect (☆) impact on GHG emissions.		[[CIRCEE]] can activate various exogenous instruments, depending on different narratives, to help the economy to circularity. Each instrument has a direct (★) or indirect (☆) impact on GHG emissions.

	{\| class="wikitable" style="width:20em; text-align:center; float:right"		{\| class="wikitable" style="width:20em; text-align:center; float:right"
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	1. <u>Substitute secondary (recycled) materials for primary (virgin) materials ([[Recycle (R8)]])</u>		1. <u>Substitute secondary (recycled) materials for primary (virgin) materials ([[Recycle (R8)]])</u>

	* ~~Tax on landfill waste~~ ★		* Waste tax ★
	* Subsidies ~~towards the~~ recycling ~~sector ☆~~		* Subsidies to recycling activities ☆
	* Mandatory recycling targets ★
	* Green product design to increase the recyclability of goods ☆
	* Extended Producer Responsibility (EPR) fees ☆
	* The shock on the recyclability rate of waste ★		* The shock on the recyclability rate of waste ★
	* Shock the ~~share of~~ secondary materials ~~in the production function of sectors~~ ★		* Shock on the price differential between primary and secondary materials ★
	* Shock on material prices ☆		* Shock on material prices ☆

	2. <u>Substitute repaired and second-hand for newly produced goods ([[Reuse (R3)\|Re-use (R3)]], [[Repair (R4)]], ~~[[Remanufacture~~ (R6)]])</u>		2. <u>Substitute repaired and second-hand for newly produced goods ([[Reuse (R3)\|Re-use (R3)]], [[Repair (R4)]], Refurbish (R5))</u>

	* Discount/no VAT for repairing services ☆		* Discount/no VAT for repairing services ☆
	* Repair bonus ☆		* Repair bonus ☆
	* Robotization of the repair sector ☆
	* Shock on second-hand goods demand ★		* Shock on second-hand goods demand ★
	* Reduced transaction costs on second-hand markets ☆		* Reduced transaction costs on second-hand markets ☆
	* ~~Shock households' preferences~~ ★		* Lifestyle changes ★
			* EPR fees to incentivize sustainable consumption decisions ★

	3. <u>Replace new goods with services (sharing economy) ([[Rethink (R1)]])</u>		3. <u>Replace new goods with services (sharing economy) ([[Rethink (R1)]])</u>

	* ~~Discount on sharing services price ☆~~		* Lifestyle changes ★
	* Reduce access fee to sharing digital platforms ☆
	* Shock households' preferences ★

	4. <u>Increase the utilization rate of long-lived goods (sharing economy) ([[Rethink (R1~~)]], [[Repurpose (R7~~)]])</u>		4. <u>Increase the utilization rate of long-lived goods (sharing economy) ([[Rethink (R1)]])</u>

	* Shock on the utilization rate of durable goods ★		* Shock on the utilization rate of durable goods ★

	5. <u>~~Refurbish housing~~ ([[~~Refurbish~~ (R5)]])</u>		6. <u>Reduce the use of materials in production processes ([[Rethink (R1)\|Reduce (R2)]])</u>

	* ~~Shock on the refurbishing rate of the economy~~ ★		* Waste tax ★
			* Shock on the material loss during the production process of goods ★
	~~6. <u>Improve material productivity via technological change ([[Rethink (R1)]])</u>~~

	* Shock on the material ~~leakage rate~~ of ~~sectors~~ ★
	* Shock on material productivity ★		* Shock on material productivity ★
	* Subsidies towards R&D ☆

	7. <u>Substitute non-material inputs for materials ([[Refuse (R0)]])</u>		7. <u>Substitute non-material inputs for materials ([[Refuse (R0)]])</u>
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	* Decrease the depreciation rate of durable, semi-durable and capital goods ★		* Decrease the depreciation rate of durable, semi-durable and capital goods ★
	* EPR fees to incentivize green product design ☆		* EPR fees to incentivize green product design

	9. <u>Reduce the consumption of certain goods ([[Reduce (R2)]])</u>		9. <u>Reduce the consumption of certain goods ([[Reduce (R2)]])</u>

	* ~~Shock households' preferences and expenses for certain types of goods~~ ★		* Lifestyle changes ★
	* ~~Reduce the demand for foreign goods that are relatively more material-intensive~~ ★		* EPR fees to incentivize sustainable consumption decisions ★

	===Synergies and trade-off between the R-word in the context of the stylized model===		===Synergies and trade-off between the R-word in the context of the stylized model===
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	#Purchase a newly produced car, which requires new materials and energy inputs. However, the new car typically has higher energy efficiency than the old one.		#Purchase a newly produced car, which requires new materials and energy inputs. However, the new car typically has higher energy efficiency than the old one.
	#Continue consuming the energy service without purchasing a new ~~durable good~~ by engaging with the repairing service sector to extend the life of the old car. However, this option may have a negative impact on the overall energy efficiency of ~~durable goods~~.		#Continue consuming the energy service without purchasing a new car by engaging with the repairing service sector to extend the life of the old car. However, this option may have a negative impact on the overall energy efficiency of cars.
	# Participate in the peer-to-peer sharing market to use a car, without directly owning it, jointly with energy.		# Participate in the peer-to-peer sharing market to use a car, without directly owning it, jointly with energy.
	#Participate in the second-hand ~~durable goods~~ market, where they can purchase a used car that is not yet at the end of its useful service life.		#Participate in the second-hand car market, where they can purchase a used car that is not yet at the end of its useful service life.

	On the supply side, sectors make intra-temporal trade-offs between different input mixes. For instance, firms may increase the use of recycled materials in their production process in response to external incentives promoting more circular behaviour.		On the supply side, sectors make intra-temporal trade-offs between different input mixes. For instance, firms may increase the use of recycled materials in their production process in response to external incentives promoting more circular behaviour.

Darius.corbier: /* CE strategies and connection with climate change mitigation. */

2024-05-02T13:42:14Z

CE strategies and connection with climate change mitigation.

← Older revision		Revision as of 15:42, 2 May 2024
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	[[File:Capture d’écran 2024-05-02 à 15.26.19.png\|thumb\|Typology of households in CIRCEE from the LIFE model of Pettifor et al. (2023)]]		[[File:Capture d’écran 2024-05-02 à 15.26.19.png\|thumb\|Typology of households in CIRCEE from the LIFE model of Pettifor et al. (2023)]]
	The economy is populated by heterogeneous households, producing sectors and a public authority.		The economy is populated by heterogeneous households, producing sectors and a public authority.
	~~[[File:Capture d’écran 2024-05-02 à 15.30.10.png\|thumb\|CES tree for "new products" production sectors]]~~
	On the demand side of the economy, three types of households are differentiated by their lifestyles and liquidity constraints. Households choose to consume different types of goods: non-durables, semi-durables and durable goods, and services : home-produced energy services, sharing energy services, and repairing services. They make intratemporal choices regarding the composition of their consumption basket (e.g. consuming sharing energy service rather than producing it at home) and intertemporal choices between different types of assets available to them (capital, durable and semi-durable goods). In [[CIRCEE]], owners can make their durable goods available for rent to other individuals when they are not using them and are willing to rent them. The lifestyles are those outlined in the Pettifor, Wilson, and Agnew (2023)<ref name=":0" />. Low-carbon behaviors (lifestyles) are driven by cognitions and social/material contexts. They affect directly households' preferences in :		On the demand side of the economy, three types of households are differentiated by their lifestyles and liquidity constraints. Households choose to consume different types of goods: non-durables, semi-durables and durable goods, and services : home-produced energy services, sharing energy services, and repairing services. They make intratemporal choices regarding the composition of their consumption basket (e.g. consuming sharing energy service rather than producing it at home) and intertemporal choices between different types of assets available to them (capital, durable and semi-durable goods). In [[CIRCEE]], owners can make their durable goods available for rent to other individuals when they are not using them and are willing to rent them. The lifestyles are those outlined in the Pettifor, Wilson, and Agnew (2023)<ref name=":0" />. Low-carbon behaviors (lifestyles) are driven by cognitions and social/material contexts. They affect directly households' preferences in :

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	* sharing a durable goods rather than buying brand new		* sharing a durable goods rather than buying brand new
	* lowering expenditures in durable goods and semi-durable goods (sufficiency)		* lowering expenditures in durable goods and semi-durable goods (sufficiency)
			[[File:Capture d’écran 2024-05-02 à 15.30.10.png\|thumb\|CES tree for "new products" production sectors]]On the economy's supply side, the economy is populated by eight sectors producing the following products: primary materials, secondary materials, non-durable goods, semi-durable goods, durable goods, capital goods, sharing energy services and repairing services. All goods and services sectors, except the repairing and sharing sector, produce from labour, capital, energy (electricity and fuels), and material (primary and secondary) inputs. The repairing sector only produces repairing/refurbishing services using labor and capital. The sharing sector rents part of the durable good stock owned by households, uses energy and labor to produce sharing services. Material processing firms use labor, capital, energy and raw or waste material inputs to produce primary and secondary materials. The production structure of the economy is economically and physically consistent, in the sense that it verifies the mass balance of the system. The energy supply side is exogenous of [[CIRCEE]]. [[CIRCEE]] is soft-linked to the {{abbr\|Integrated Assessment Model\|IAM}} model https://www.witchmodel.org/ from the RFF-CMCC European Institute on Economics and the Environment (EIEE) to assess the overall GHG mitigation potential of circular economy strategies.


	On the economy's supply side, the economy is populated by eight sectors producing the following products: primary materials, secondary materials, non-durable goods, semi-durable goods, durable goods, capital goods, sharing energy services and repairing services. All goods and services sectors, except the repairing and sharing sector, produce from labour, capital, energy (electricity and fuels), and material (primary and secondary) inputs. The repairing sector only produces repairing/refurbishing services using labor and capital. The sharing sector rents part of the durable good stock owned by households, uses energy and labor to produce sharing services. Material processing firms use labor, capital, energy and raw or waste material inputs to produce primary and secondary materials. The production structure of the economy is economically and physically consistent, in the sense that it verifies the mass balance of the system. The energy supply side is exogenous of [[CIRCEE]]. [[CIRCEE]] is soft-linked to the {{abbr\|Integrated Assessment Model\|IAM}} model https://www.witchmodel.org/ from the RFF-CMCC European Institute on Economics and the Environment (EIEE) to assess the overall GHG mitigation potential of circular economy strategies.

	The government levies taxes, implements circular economy policies, and makes public expenses. In addition, the model considers trade flows between the domestic economy and the rest of the world.		The government levies taxes, implements circular economy policies, and makes public expenses. In addition, the model considers trade flows between the domestic economy and the rest of the world.

Darius.corbier: /* R Words coverage and implemented in the model */

2024-05-02T13:40:21Z

R Words coverage and implemented in the model

← Older revision		Revision as of 15:40, 2 May 2024
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	===R Words coverage and implemented in the model ===		===R Words coverage and implemented in the model ===
	[[File:R strategies and Policy instruments in CIRCEE.png\|thumb\|R strategies and Policy instruments in CIRCEE]]		[[File:R strategies and Policy instruments in CIRCEE.png\|thumb\|R strategies and Policy instruments in CIRCEE]]
	[[CIRCEE]] offers a comprehensive outlook on the socio-economic-climatic consequences of implementing circular economy practices by integrating different strategies. At the macro level, [[CIRCEE]] encompasses ~~most~~ R strategies. The first one is"'Recycle R8'", which involves using secondary (recycled) materials instead of primary (virgin) materials. Increasing material circularity through strategies is key to the vision of a circular economy. The second one relates to "Reuse R3, Repair R4, Refurbish R5~~, and Remanufacture R6"~~, which involves substituting newly produced goods with repaired or second-hand items to extend the lifespans of products, replacing new goods with services (such as in the sharing economy), intensifying the use of long-lived goods (also in the sharing economy) ~~and refurbishing housing~~. The third encompasses "'Rethink R1,~~'"'~~ Reduce R2 and Refuse R0'" which involves enhancing material productivity through technological advancements, ~~replacing material inputs with non-material ones, using lighter materials~~, adopting Green Product Design to increase the durability and recyclability of goods, sharing products ~~and services, higher use rates~~, and ~~reducing the consumption of certain goods for which the same benefits can be achieved through alternative means~~. These strategies emphasize the significance of lowering material flows within the economy. Green product design is crucial in slowing down material flow by creating more durable and repairable goods~~. However, due to its inherent macrostructure, [[CIRCEE]] cannot fully capture the incentives that drive firms to engage in green product design~~. To support the economy's transition toward circularity, [[CIRCEE]] integrates various exogenous policies and economic instruments~~, described in detail throughout the model's analytical description~~.		[[CIRCEE]] offers a comprehensive outlook on the socio-economic-climatic consequences of implementing circular economy practices by integrating different strategies. At the macro level, [[CIRCEE]] encompasses the following R strategies. The first one is Recycle R8, which involves using secondary (recycled) materials instead of primary (virgin) materials. Increasing material circularity through strategies is key to the vision of a circular economy. The second one relates to Reuse R3, Repair R4 and Refurbish R5, which involves substituting newly produced goods with repaired or second-hand items to extend the lifespans of products, replacing new goods with services (such as in the sharing economy), and intensifying the use of long-lived goods (also in the sharing economy). The third encompasses Rethink R1, Reduce R2 and Refuse R0 which involves enhancing material productivity through technological advancements,, adopting Green Product Design to increase the durability and recyclability of goods, sharing products, and sufficiency behaviors. These strategies emphasize the significance of lowering material flows within the economy. Green product design is crucial in slowing down material flow by creating more durable and repairable goods. To support the economy's transition toward circularity, [[CIRCEE]] integrates various exogenous policies and economic instruments.

	===CE strategies and connection with climate change mitigation.===		===CE strategies and connection with climate change mitigation.===

Darius.corbier at 13:37, 2 May 2024

2024-05-02T13:37:25Z

← Older revision		Revision as of 15:37, 2 May 2024
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	The economy is populated by heterogeneous households, producing sectors and a public authority.		The economy is populated by heterogeneous households, producing sectors and a public authority.
	[[File:Capture d’écran 2024-05-02 à 15.30.10.png\|thumb\|CES tree for "new products" production sectors]]		[[File:Capture d’écran 2024-05-02 à 15.30.10.png\|thumb\|CES tree for "new products" production sectors]]
	On the demand side of the economy, three types of households are differentiated by their lifestyles and liquidity constraints. Households choose to consume different types of goods: non-durables, semi-durables and durable goods, and services : home-produced energy services, sharing energy services, and repairing services. They make intratemporal choices regarding the composition of their consumption basket (e.g. consuming sharing energy service rather than producing it at home) and intertemporal choices between different types of assets available to them (capital, durable and semi-durable goods). In [[CIRCEE]], owners can make their durable goods available for rent to other individuals when they are not using them and are willing to rent them. The lifestyles are those outlined in the Pettifor, Wilson, and Agnew (2023)<ref name=":0" />. ~~Lifestyles~~ affect directly households' preferences in :		On the demand side of the economy, three types of households are differentiated by their lifestyles and liquidity constraints. Households choose to consume different types of goods: non-durables, semi-durables and durable goods, and services : home-produced energy services, sharing energy services, and repairing services. They make intratemporal choices regarding the composition of their consumption basket (e.g. consuming sharing energy service rather than producing it at home) and intertemporal choices between different types of assets available to them (capital, durable and semi-durable goods). In [[CIRCEE]], owners can make their durable goods available for rent to other individuals when they are not using them and are willing to rent them. The lifestyles are those outlined in the Pettifor, Wilson, and Agnew (2023)<ref name=":0" />. Low-carbon behaviors (lifestyles) are driven by cognitions and social/material contexts. They affect directly households' preferences in :

	* repairing durable goods rather than buying brand new		* repairing durable goods rather than buying brand new
	* sharing a durable goods rather than buying brand new		* sharing a durable goods rather than buying brand new
	* lowering expenditures in durable goods and semi-durable goods (sufficiency)		* lowering expenditures in durable goods and semi-durable goods (sufficiency)

Darius.corbier at 13:35, 2 May 2024

2024-05-02T13:35:31Z

← Older revision		Revision as of 15:35, 2 May 2024
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	<nowiki>**</nowiki>		<nowiki>**</nowiki>
	[[File:Consumption tree in CIRCEE.png\|thumb\|Consumption tree in CIRCEE]]		[[File:Consumption tree in CIRCEE.png\|thumb\|Consumption tree in CIRCEE]]
	The economy is populated by heterogeneous households, producing sectors and a public authority. On the demand side of the economy, three types of households are differentiated by their lifestyles and liquidity constraints~~. The lifestyles are those outlined in the Pettifor, Wilson, and Agnew (2023)<ref name=":0" />~~. Households choose to consume different types of goods: non-durables, semi-durables and durable goods, and services : home-produced energy services, sharing energy services, and repairing services. They make intratemporal choices regarding the composition of their consumption basket (e.g. consuming a sharing energy service rather than ~~home-~~producing it) and intertemporal choices between different types of assets available to them (capital, durable and semi-durable goods). In [[CIRCEE]], owners can make their durable goods available for rent to other individuals when they are not using them and are willing to rent them. The ~~goods~~ are ~~shared via a digital matching platform~~.		[[File:Capture d’écran 2024-05-02 à 15.26.19.png\|thumb\|Typology of households in CIRCEE from the LIFE model of Pettifor et al. (2023)]]
			The economy is populated by heterogeneous households, producing sectors and a public authority.
			[[File:Capture d’écran 2024-05-02 à 15.30.10.png\|thumb\|CES tree for "new products" production sectors]]
			On the demand side of the economy, three types of households are differentiated by their lifestyles and liquidity constraints. Households choose to consume different types of goods: non-durables, semi-durables and durable goods, and services : home-produced energy services, sharing energy services, and repairing services. They make intratemporal choices regarding the composition of their consumption basket (e.g. consuming sharing energy service rather than producing it at home) and intertemporal choices between different types of assets available to them (capital, durable and semi-durable goods). In [[CIRCEE]], owners can make their durable goods available for rent to other individuals when they are not using them and are willing to rent them. The lifestyles are those outlined in the Pettifor, Wilson, and Agnew (2023)<ref name=":0" />. Lifestyles affect directly households' preferences in :

	On the economy's supply side, the economy is populated by eight sectors producing the following products: primary materials, secondary materials, non-durable goods, semi-durable goods, durable goods, capital goods, sharing energy services and repairing services. All goods and services sectors, except the repairing and sharing sector, produce from labour, capital, energy (electricity and fuels), and material (primary and secondary) inputs. The repairing sector only produces repairing/refurbishing services using labor and capital. The sharing sector rents part of the durable good stock owned by households, uses energy and labor to produce sharing services. Material processing firms use labor, capital, energy and raw or waste material inputs to produce primary and secondary materials. The production structure of the economy is economically and physically consistent, in the sense that it verifies the mass balance of the system. The energy supply side is exogenous of [[CIRCEE]]. [[CIRCEE]]~~<nowiki/>~~is soft-linked to the {{abbr\|Integrated Assessment Model\|IAM}} model https://www.witchmodel.org/ from the RFF-CMCC European Institute on Economics and the Environment (EIEE) to assess the overall GHG mitigation potential of circular economy strategies.		* repairing durable goods rather than buying brand new
			* sharing a durable goods rather than buying brand new
			* lowering expenditures in durable goods and semi-durable goods (sufficiency)


			On the economy's supply side, the economy is populated by eight sectors producing the following products: primary materials, secondary materials, non-durable goods, semi-durable goods, durable goods, capital goods, sharing energy services and repairing services. All goods and services sectors, except the repairing and sharing sector, produce from labour, capital, energy (electricity and fuels), and material (primary and secondary) inputs. The repairing sector only produces repairing/refurbishing services using labor and capital. The sharing sector rents part of the durable good stock owned by households, uses energy and labor to produce sharing services. Material processing firms use labor, capital, energy and raw or waste material inputs to produce primary and secondary materials. The production structure of the economy is economically and physically consistent, in the sense that it verifies the mass balance of the system. The energy supply side is exogenous of [[CIRCEE]]. [[CIRCEE]] is soft-linked to the {{abbr\|Integrated Assessment Model\|IAM}} model https://www.witchmodel.org/ from the RFF-CMCC European Institute on Economics and the Environment (EIEE) to assess the overall GHG mitigation potential of circular economy strategies.

	The government levies taxes, implements circular economy policies, and makes public expenses. In addition, the model considers trade flows between the domestic economy and the rest of the world.		The government levies taxes, implements circular economy policies, and makes public expenses. In addition, the model considers trade flows between the domestic economy and the rest of the world.

Darius.corbier at 13:25, 2 May 2024

2024-05-02T13:25:53Z

← Older revision		Revision as of 15:25, 2 May 2024
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	The economy is populated by heterogeneous households, producing sectors and a public authority. On the demand side of the economy, three types of households are differentiated by their lifestyles and liquidity constraints. The lifestyles are those outlined in the Pettifor, Wilson, and Agnew (2023)<ref name=":0" />. Households choose to consume different types of goods: non-durables, semi-durables and durable goods, and services : home-produced energy services, sharing energy services, and repairing services. They make intratemporal choices regarding the composition of their consumption basket (e.g. consuming a sharing energy service rather than home-producing it) and intertemporal choices between different types of assets available to them (capital, durable and semi-durable goods). In [[CIRCEE]], owners can make their durable goods available for rent to other individuals when they are not using them and are willing to rent them. The goods are shared via a digital matching platform.		The economy is populated by heterogeneous households, producing sectors and a public authority. On the demand side of the economy, three types of households are differentiated by their lifestyles and liquidity constraints. The lifestyles are those outlined in the Pettifor, Wilson, and Agnew (2023)<ref name=":0" />. Households choose to consume different types of goods: non-durables, semi-durables and durable goods, and services : home-produced energy services, sharing energy services, and repairing services. They make intratemporal choices regarding the composition of their consumption basket (e.g. consuming a sharing energy service rather than home-producing it) and intertemporal choices between different types of assets available to them (capital, durable and semi-durable goods). In [[CIRCEE]], owners can make their durable goods available for rent to other individuals when they are not using them and are willing to rent them. The goods are shared via a digital matching platform.

	On the economy's supply side, the economy is populated by eight sectors producing the following products: primary materials, secondary materials, non-durable goods, semi-durable goods, durable goods, capital goods, sharing energy services and repairing services. All goods and services sectors, except the repairing and sharing sector, produce from labour, capital, energy (electricity and fuels), and material (primary and secondary) inputs. The repairing sector only produces repairing/refurbishing services using labor and capital. The sharing sector rents part of the durable good stock owned by households, uses energy and labor to produce sharing services. Material processing firms use labor, capital, energy and raw or waste material inputs to produce primary and secondary materials. The production structure of the economy is economically and physically consistent, in the sense that it verifies the mass balance of the system. The energy supply side is exogenous of [[CIRCEE]]. [[CIRCEE]]<nowiki/>is soft-linked to the {{abbr\|Integrated Assessment Model\|IAM}} model https://www.witchmodel.org/ from the RFF-CMCC European Institute on Economics and the Environment (EIEE) to assess the overall GHG mitigation potential of circular economy strategies.		On the economy's supply side, the economy is populated by eight sectors producing the following products: primary materials, secondary materials, non-durable goods, semi-durable goods, durable goods, capital goods, sharing energy services and repairing services. All goods and services sectors, except the repairing and sharing sector, produce from labour, capital, energy (electricity and fuels), and material (primary and secondary) inputs. The repairing sector only produces repairing/refurbishing services using labor and capital. The sharing sector rents part of the durable good stock owned by households, uses energy and labor to produce sharing services. Material processing firms use labor, capital, energy and raw or waste material inputs to produce primary and secondary materials. The production structure of the economy is economically and physically consistent, in the sense that it verifies the mass balance of the system. The energy supply side is exogenous of [[CIRCEE]]. [[CIRCEE]]<nowiki/>is soft-linked to the {{abbr\|Integrated Assessment Model\|IAM}} model https://www.witchmodel.org/ from the RFF-CMCC European Institute on Economics and the Environment (EIEE) to assess the overall GHG mitigation potential of circular economy strategies.

	The government levies taxes, implements circular economy policies, and makes public expenses. In addition, the model considers trade flows between the domestic economy and other countries since imports and exports of goods may have different material intensities. Also, it is essential to consider the potential negative consequences of transitioning toward a circular economy for resource-rich economies, which can lead to justice issues. While reducing the ~~import~~ of ~~resources can benefit economies with limited resources, it may have a negative impact on resource-rich economies, resulting in a decrease in their GDP. Therefore, it is important to recognize that~~ the ~~circular economy might be a zero-sum game~~.		The government levies taxes, implements circular economy policies, and makes public expenses. In addition, the model considers trade flows between the domestic economy and the rest of the world.

	The current geographical scope of [[CIRCEE]] is Japan ~~and South Korea (and, later on~~, France). These countries are being studied because they are among the least resource-rich economies in the OECD. Circular economy and new business models are essential for addressing climate change, improving resource security, and promoting economic growth in these countries. Furthermore, the leading industries in Japan and South Korea depend heavily on key materials for their production processes, including semiconductors, automobiles, steel-making, ships, and the ICT industry. As a result, these countries are particularly vulnerable to fluctuations in material prices and issues related to the security of supply. The growing demand for materials in new low-carbon technologies, digitalization, and the heavy reliance on China's exports further exacerbate the challenges. Both countries have accelerated their transition toward a circular economy system to address these challenges and implemented various policies, such as Japan's Circular Economy Vision 2020 and ~~South Korea's Framework Act on Resource Circularity~~. Data availability will determine which more OECD countries can be added to the model. However, users may add other countries themselves, provided there is enough data to calibrate the model.		The current geographical scope of [[CIRCEE]] is Japan, France and EU27. Data availability will determine which more OECD countries can be added to the model. However, users may add other countries themselves, provided there is enough data to calibrate the model.

	[[CIRCEE]] users can run the model for any desired number of years, using ~~2019~~ as the base year value. A longer time horizon can also be run to avoid any end-of-horizon effect, but ~~2100~~ is generally sufficient. Results are usually reported for the period 2019-2060. The model has a yearly time step.		[[CIRCEE]] users can run the model for any desired number of years, using 2018 as the base year value. A longer time horizon can also be run to avoid any end-of-horizon effect, but 2080 is generally sufficient. Results are usually reported for the period 2019-2060. The model has a yearly time step. [[CIRCEE]] allows the users to choose between all SSPs but SSP3.

	~~<nowiki>**</nowiki>~~

	[[CIRCEE]] allows the ~~study of many scenarios, especially Shared Socioeconomic Pathways (~~SSPs~~) and Low Energy Demand (LED), that integrate different narratives for the circular economy. These scenarios match the storylines and quantification throughout the model to generate various scenarios~~.

	===Model Development===		===Model Development===

Darius.corbier: /* General Scope and Connection with Climate Mitigation */

2024-05-02T13:23:09Z

General Scope and Connection with Climate Mitigation

← Older revision		Revision as of 15:23, 2 May 2024
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	Assessing the full potential of a circular economy requires a macro-level and integrated assessment approach that addresses the complex interdependencies and trade-offs between environmental, social, and economic objectives. Policy support, lifestyle changes, innovation, and new business models such as sharing and digitalization models are critical enablers for the transition to a circular economy, as well as a deep understanding of the underlying drivers and barriers. Also, it is important to understand the hypothetical synergies, benefits and trade-offs with implementing different circular economy strategies As these policies and lifestyle changes are vital in driving the transition toward a circular economy, understanding their implications is essential. Assessing the impact of a CE on socioeconomic systems remains a complex and challenging task for Integrated Assessment Models and the macroeconomic modeling community. Pauliuk et al. (2017) emphasize the necessity of incorporating industrial ecology system linkages into Integrated Assessment Models.		Assessing the full potential of a circular economy requires a macro-level and integrated assessment approach that addresses the complex interdependencies and trade-offs between environmental, social, and economic objectives. Policy support, lifestyle changes, innovation, and new business models such as sharing and digitalization models are critical enablers for the transition to a circular economy, as well as a deep understanding of the underlying drivers and barriers. Also, it is important to understand the hypothetical synergies, benefits and trade-offs with implementing different circular economy strategies As these policies and lifestyle changes are vital in driving the transition toward a circular economy, understanding their implications is essential. Assessing the impact of a CE on socioeconomic systems remains a complex and challenging task for Integrated Assessment Models and the macroeconomic modeling community. Pauliuk et al. (2017) emphasize the necessity of incorporating industrial ecology system linkages into Integrated Assessment Models.

	[[CIRCEE]] (''CIRC''ular ''E''nergy ''E''conomy), developed by the [https://www.eiee.org RFF-CMCC European Institute on Economics and the Environment], addresses these challenges by developing a stylized ~~dynamic general equilibrium~~ model, soft-linked to the [https://www.witchmodel.org WITCH integrated assessment model] and the LIFE model of Pettifor, Wilson, and Agnew (2023)<ref name=":0">Hazel Pettifor, Maureen Agnew, Charlie Wilson. ''A framework for measuring and modelling low-carbon lifestyles,'' Global Environmental Change, Volume 82, 2023, 102739, ISSN 0959-3780, https://doi.org/10.1016/j.gloenvcha.2023.102739.</ref>, that integrates ~~key~~ industrial ecology aspects and ~~households' low-carbon~~ lifestyle heterogeneity. Our framework captures the dynamic feedback loops between physical and economic systems and assesses the trade-offs and synergies between different sustainability objectives. The stylized model will serve as a starting point for the {{abbr\|Integrated Assessment Model\|IAM}} community and help map CE strategies into existing climate scenarios.		[[CIRCEE]] (''CIRC''ular ''E''nergy ''E''conomy), developed by the [https://www.eiee.org RFF-CMCC European Institute on Economics and the Environment], addresses these challenges by developing a stylized DSGE model, soft-linked to the [https://www.witchmodel.org WITCH integrated assessment model] and the LIFE model of Pettifor, Wilson, and Agnew (2023)<ref name=":0">Hazel Pettifor, Maureen Agnew, Charlie Wilson. ''A framework for measuring and modelling low-carbon lifestyles,'' Global Environmental Change, Volume 82, 2023, 102739, ISSN 0959-3780, https://doi.org/10.1016/j.gloenvcha.2023.102739.</ref>, that integrates some industrial ecology aspects and lifestyle heterogeneity. Our framework captures the dynamic feedback loops between physical and economic systems and assesses the trade-offs and synergies between different sustainability objectives. The stylized model will serve as a starting point for the {{abbr\|Integrated Assessment Model\|IAM}} community and help map CE strategies into existing climate scenarios.

	===Model Scope===		===Model Scope===
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	<nowiki>**</nowiki>		<nowiki>**</nowiki>
	[[File:Consumption tree in CIRCEE.png\|thumb\|Consumption tree in CIRCEE]]		[[File:Consumption tree in CIRCEE.png\|thumb\|Consumption tree in CIRCEE]]
	The economy is populated by heterogeneous households, ~~input and good-~~producing sectors and ~~the government~~. On the demand side of the economy, three types of households are differentiated by their ~~low-carbon~~ lifestyles and liquidity constraints. The lifestyles are those outlined in the Pettifor, Wilson, and Agnew (2023)<ref name=":0" />. Households choose to consume different types of goods: non-durables, semi-durables, durable ~~and "housing"~~ goods, and ~~other types of~~ services~~, such as~~ home-produced energy services, sharing energy services, and repairing services. They make intratemporal choices regarding the composition of their consumption basket (e.g. consuming a sharing energy service rather than home-producing it) and intertemporal choices between different types of assets available to them (capital, durable and semi-durable). In [[CIRCEE]], owners can make their durable goods available for rent to other individuals when they are not using them and are willing to rent them. The goods are shared via a digital matching platform.		The economy is populated by heterogeneous households, producing sectors and a public authority. On the demand side of the economy, three types of households are differentiated by their lifestyles and liquidity constraints. The lifestyles are those outlined in the Pettifor, Wilson, and Agnew (2023)<ref name=":0" />. Households choose to consume different types of goods: non-durables, semi-durables and durable goods, and services : home-produced energy services, sharing energy services, and repairing services. They make intratemporal choices regarding the composition of their consumption basket (e.g. consuming a sharing energy service rather than home-producing it) and intertemporal choices between different types of assets available to them (capital, durable and semi-durable goods). In [[CIRCEE]], owners can make their durable goods available for rent to other individuals when they are not using them and are willing to rent them. The goods are shared via a digital matching platform.

	On the economy's supply side, the economy is populated by ~~nine~~ sectors producing the following products: primary ~~material~~, secondary ~~material~~, non-durable goods, semi-durable goods, durable goods, capital goods, sharing energy services, repairing services~~, and housing~~. All sectors, except the repairing sector, produce from labour, capital, energy (electricity and fuels), and material (primary and secondary) inputs. The repairing sector only produces repairing/~~remanufacturing~~ services using labor and capital. The production structure of the economy is economically and physically consistent~~. It considers critical thermodynamic limits such as ruling out~~ the ~~100 per cent recycling and repairing scenario, a minimal material~~ balance ~~condition, a thermodynamic efficiency condition, physical resources stock and flows, and volume-preserving CES functions~~. The energy supply side ~~and housing demand are~~ exogenous of [[CIRCEE]]. [[CIRCEE]] is soft-linked to the {{abbr\|Integrated Assessment Model\|IAM}} model https://www.witchmodel.org/ from the RFF-CMCC European Institute on Economics and the Environment (EIEE) to assess the overall GHG mitigation potential of circular economy strategies. ~~And, [[CIRCEE]] uses simulation from [[IEBUILDING]] for housing demand.~~		On the economy's supply side, the economy is populated by eight sectors producing the following products: primary materials, secondary materials, non-durable goods, semi-durable goods, durable goods, capital goods, sharing energy services and repairing services. All goods and services sectors, except the repairing and sharing sector, produce from labour, capital, energy (electricity and fuels), and material (primary and secondary) inputs. The repairing sector only produces repairing/refurbishing services using labor and capital. The sharing sector rents part of the durable good stock owned by households, uses energy and labor to produce sharing services. Material processing firms use labor, capital, energy and raw or waste material inputs to produce primary and secondary materials. The production structure of the economy is economically and physically consistent, in the sense that it verifies the mass balance of the system. The energy supply side is exogenous of [[CIRCEE]]. [[CIRCEE]]<nowiki/>is soft-linked to the {{abbr\|Integrated Assessment Model\|IAM}} model https://www.witchmodel.org/ from the RFF-CMCC European Institute on Economics and the Environment (EIEE) to assess the overall GHG mitigation potential of circular economy strategies.

	The government levies taxes, implements circular economy policies, and makes public expenses. In addition, the model considers trade flows between the domestic economy and other countries since imports and exports of goods may have different material intensities. Also, it is essential to consider the potential negative consequences of transitioning toward a circular economy for resource-rich economies, which can lead to justice issues. While reducing the import of resources can benefit economies with limited resources, it may have a negative impact on resource-rich economies, resulting in a decrease in their GDP. Therefore, it is important to recognize that the circular economy might be a zero-sum game.		The government levies taxes, implements circular economy policies, and makes public expenses. In addition, the model considers trade flows between the domestic economy and other countries since imports and exports of goods may have different material intensities. Also, it is essential to consider the potential negative consequences of transitioning toward a circular economy for resource-rich economies, which can lead to justice issues. While reducing the import of resources can benefit economies with limited resources, it may have a negative impact on resource-rich economies, resulting in a decrease in their GDP. Therefore, it is important to recognize that the circular economy might be a zero-sum game.

Darius.corbier: /* Introduction */

2024-05-02T13:08:51Z

Introduction

← Older revision		Revision as of 15:08, 2 May 2024
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	=== Introduction ===		=== Introduction ===
	Assessing the full potential of a circular economy requires a macro-level and integrated assessment approach that addresses the complex interdependencies and trade-offs between environmental, social, and economic objectives. Policy support, lifestyle changes, innovation, and new business models such as sharing and digitalization models are critical enablers for the transition to a circular economy, as well as a deep understanding of the underlying drivers and barriers. Also, it is important to understand the hypothetical synergies, benefits and trade-offs with implementing different circular economy strategies As these policies and lifestyle changes are vital in driving the transition toward a circular economy, understanding their implications is essential. ~~However, assessing~~ the ~~impacts~~ of a ~~circular economy~~ on ~~socio-economic-climate~~ systems remains a complex and challenging task.		Assessing the full potential of a circular economy requires a macro-level and integrated assessment approach that addresses the complex interdependencies and trade-offs between environmental, social, and economic objectives. Policy support, lifestyle changes, innovation, and new business models such as sharing and digitalization models are critical enablers for the transition to a circular economy, as well as a deep understanding of the underlying drivers and barriers. Also, it is important to understand the hypothetical synergies, benefits and trade-offs with implementing different circular economy strategies As these policies and lifestyle changes are vital in driving the transition toward a circular economy, understanding their implications is essential. Assessing the impact of a CE on socioeconomic systems remains a complex and challenging task for Integrated Assessment Models and the macroeconomic modeling community. Pauliuk et al. (2017) emphasize the necessity of incorporating industrial ecology system linkages into Integrated Assessment Models.

	[[CIRCEE]] (''CIRC''ular ''E''nergy ''E''conomy), developed by the [https://www.eiee.org RFF-CMCC European Institute on Economics and the Environment], addresses these challenges by developing a stylized dynamic general equilibrium model, soft-linked to the [https://www.witchmodel.org WITCH integrated assessment model] and the LIFE model of Pettifor, Wilson, and Agnew (2023)<ref name=":0">Hazel Pettifor, Maureen Agnew, Charlie Wilson. ''A framework for measuring and modelling low-carbon lifestyles,'' Global Environmental Change, Volume 82, 2023, 102739, ISSN 0959-3780, https://doi.org/10.1016/j.gloenvcha.2023.102739.</ref>, that integrates key industrial ecology aspects and households' low-carbon lifestyle heterogeneity. Our framework captures the dynamic feedback loops between physical and economic systems and assesses the trade-offs and synergies between different sustainability objectives. The stylized model will serve as a starting point for the {{abbr\|Integrated Assessment Model\|IAM}} community and help map CE strategies into existing climate scenarios.		[[CIRCEE]] (''CIRC''ular ''E''nergy ''E''conomy), developed by the [https://www.eiee.org RFF-CMCC European Institute on Economics and the Environment], addresses these challenges by developing a stylized dynamic general equilibrium model, soft-linked to the [https://www.witchmodel.org WITCH integrated assessment model] and the LIFE model of Pettifor, Wilson, and Agnew (2023)<ref name=":0">Hazel Pettifor, Maureen Agnew, Charlie Wilson. ''A framework for measuring and modelling low-carbon lifestyles,'' Global Environmental Change, Volume 82, 2023, 102739, ISSN 0959-3780, https://doi.org/10.1016/j.gloenvcha.2023.102739.</ref>, that integrates key industrial ecology aspects and households' low-carbon lifestyle heterogeneity. Our framework captures the dynamic feedback loops between physical and economic systems and assesses the trade-offs and synergies between different sustainability objectives. The stylized model will serve as a starting point for the {{abbr\|Integrated Assessment Model\|IAM}} community and help map CE strategies into existing climate scenarios.

Darius.corbier: /* Introduction */

2024-05-02T13:06:59Z

Introduction

← Older revision		Revision as of 15:06, 2 May 2024
Line 2:		Line 2:

	=== Introduction ===		=== Introduction ===
	Assessing the full potential of a circular economy requires a macro-level and integrated assessment approach that addresses the complex interdependencies and trade-offs between environmental, social, and economic objectives. Policy support, lifestyle changes, innovation, and new business models such as sharing and digitalization models are critical enablers for the transition to a circular economy, as well as a deep understanding of the underlying drivers and barriers. As these policies and lifestyle changes are vital in driving the transition toward a circular economy, understanding their implications is essential. However, assessing the impacts of a circular economy on socio-economic-climate systems remains a complex and challenging task.		Assessing the full potential of a circular economy requires a macro-level and integrated assessment approach that addresses the complex interdependencies and trade-offs between environmental, social, and economic objectives. Policy support, lifestyle changes, innovation, and new business models such as sharing and digitalization models are critical enablers for the transition to a circular economy, as well as a deep understanding of the underlying drivers and barriers. Also, it is important to understand the hypothetical synergies, benefits and trade-offs with implementing different circular economy strategies As these policies and lifestyle changes are vital in driving the transition toward a circular economy, understanding their implications is essential. However, assessing the impacts of a circular economy on socio-economic-climate systems remains a complex and challenging task.

	[[CIRCEE]] (''CIRC''ular ''E''nergy ''E''conomy), developed by the [https://www.eiee.org RFF-CMCC European Institute on Economics and the Environment], addresses these challenges by developing a stylized dynamic general equilibrium model, soft-linked to the [https://www.witchmodel.org WITCH integrated assessment model] and the LIFE model of Pettifor, Wilson, and Agnew (2023)<ref name=":0">Hazel Pettifor, Maureen Agnew, Charlie Wilson. ''A framework for measuring and modelling low-carbon lifestyles,'' Global Environmental Change, Volume 82, 2023, 102739, ISSN 0959-3780, https://doi.org/10.1016/j.gloenvcha.2023.102739.</ref>, that integrates key industrial ecology aspects and households' low-carbon lifestyle heterogeneity. Our framework captures the dynamic feedback loops between physical and economic systems and assesses the trade-offs and synergies between different sustainability objectives. The stylized model will serve as a starting point for the {{abbr\|Integrated Assessment Model\|IAM}} community and help map CE strategies into existing climate scenarios.		[[CIRCEE]] (''CIRC''ular ''E''nergy ''E''conomy), developed by the [https://www.eiee.org RFF-CMCC European Institute on Economics and the Environment], addresses these challenges by developing a stylized dynamic general equilibrium model, soft-linked to the [https://www.witchmodel.org WITCH integrated assessment model] and the LIFE model of Pettifor, Wilson, and Agnew (2023)<ref name=":0">Hazel Pettifor, Maureen Agnew, Charlie Wilson. ''A framework for measuring and modelling low-carbon lifestyles,'' Global Environmental Change, Volume 82, 2023, 102739, ISSN 0959-3780, https://doi.org/10.1016/j.gloenvcha.2023.102739.</ref>, that integrates key industrial ecology aspects and households' low-carbon lifestyle heterogeneity. Our framework captures the dynamic feedback loops between physical and economic systems and assesses the trade-offs and synergies between different sustainability objectives. The stylized model will serve as a starting point for the {{abbr\|Integrated Assessment Model\|IAM}} community and help map CE strategies into existing climate scenarios.