Economy Model Research Articles

Circular economy and critical barriers: Mapping the pathways and success metrics for sustainable circular success in industrialised South Asian developing nations

The economy of a developing country is often industry centric, and is recognised globally. The circular economy (CE) model involves a manufacturing approach where products are systematically remanufactured and recycled within facilities to minimize waste. The emerging domain of CE in industrialised South Asian economies offers considerable benefits for developing countries due to its sustainable production, although its adoption is obstructed by various barriers. This research aims to develop a model for adopting CE within the industrial sector of South Asian developing nations by analysing the interrelation between overcoming circular economy adoption barriers (CEABs) and sustainable circular success (SCS). To attain this, questionnaire was completed by 310 industrial experts in Pakistan. Furthermore, a partial least square structural equation modelling (PLS-SEM) approach was employed to specify the barriers and inspect the interrelation between overcoming CEABs and SCS. The findings revealed a high correlation, with addressing the CEABs contributing 66.1 % to the SCS of the industrial sector. The results of this study indicate the outer loadings and average variance extracted values for all constructs surpassed the minimum threshold of 0.5, validating their acceptance. Moreover, the constructs in the study were measured reliably, exceeding a value of 0.8, which signify strong internal consistency. Additionally, the average path coefficient value (β) of 0.172 indicates a medium and positive correlation between CEABs and SCS. The study's findings can be used as a reference for policymakers to explore the primary barriers to CE adoption in developing nations and achieve SCS in industrial projects.

Aluminum Circular Economy in the Bicycle Industry

Abstract From a traditional perspective, Bicycles are considered low-carbon emission transportation tools for commuting and traveling. This study analyzes aluminum recycling pathways within the bicycle manufacturing process to illustrate the bicycle circular economy model for the industry stakeholders to better understand the roadmap for improving from manufacturing to recycling. The goal is to promote the bicycle industry's sustainable development by achieving economic benefits and environmental protection. A comprehensive analysis of the entire lifecycle of the bicycle manufacturing process including production, usage, and recycling, was conducted for future application and manufacturing improvement. This research identifies existing technical barriers, policy limitations and restrictions, and issues related to market acceptance. In response to these challenges, a framework is proposed to draw a roadmap for the industry to make informed decisions on circular-economy-centered practices. This approach encourages companies to improve carbon emission efficiency to contribute to the long-term sustainability of the bicycle industry. JEL classification numbers: L11, M10. Keywords: Carbon Emission Efficiency, Circular Economy, Aluminum Recycling, Sustainability.

Retraction Note: Linking circular economy model and green supply chain practices to shape environmental performance: case of Vietnam.

Retraction Note: Linking circular economy model and green supply chain practices to shape environmental performance: case of Vietnam.

Optimal fiscal policy in small open economies with habit persistence

Abstract This paper sets up a small open economy model with habit persistence in consumption in which distortionary taxation is available in a flexible price environment. In open economy, the habit persistence in consumption aggravates the terms of trade externality, absent in closed economy, calling for more aggressive fiscal policy. While optimal labor income taxes are time-invariant in a closed economy with internal habit, they should be time-varying in an open economy to alleviate the terms of trade externality, even if the intertemporal elasticity of substitution equals the intratemporal elasticity of substitution. In a small open economy composed of households with habit persistence in consumption, households’ decision to gradually adjust their consumption and labor hours intensifies the undesirable terms of trade externality or the terms of trade channel. This generates a time-varying wedge between the efficiency conditions of the Ramsey planner and the market equilibrium conditions, calling for a time-varying taxation which takes into account the intertemporal elasticity of substitution and the intratemporal elasticity of substitution between home and foreign goods, in addition to the degree of habit and goods market distortion. The volatility of optimal tax rate increases with the degree of habit, whether households have external or internal habit. The volatility of tax rate shows an inverted U-shape in the degree of openness in the small open economy with habit. Finally, the optimal labor income tax rate moves countercyclically for low degree of intratemporal elasticity of substitution, while it moves procyclically for high degree of intratemporal elasticity of substitution.

THEORETICAL BASIS FOR THE DEVELOPMENT OF CIRCULAR ECONOMY IN UKRAINE IN THE CONTEXT OF EUROPEAN INTEGRATION

The article reveals the impact of European directives and policies on the development of the circular economy in Ukraine. In particular, the "Circular Economy Action Plan" and the EU Waste Directive, which serve as guidelines for adapting Ukrainian policy to European standards, are considered. The role of the EU in supporting Ukraine on the way to the implementation of circular practices is considered. Possibilities of cooperation with European partners to ensure sustainable development were explored. It is argued that the development of the circular economy contributes to reducing the level of waste and increasing the efficiency of resource use. The connection between European directives and national policy in the field of sustainable development is established. Based on the set goal, the key directions and mechanisms for adapting the principles of the circular economy in Ukraine are considered. The paper examines the impact of Russian aggression against Ukraine and establishes that each community needs the formation of a new management system, which should be aimed at their reconstruction and integration into the European Community on the basis of sustainable development, restoration of critical infrastructure, and energy security. Therefore, the expediency of developing the project of the Strategy for the Green Reconstruction of Territories on the basis of subsidiarity and taking into account the European Green Course is substantiated. The specified strategy must meet the Sustainable Development Goals of Ukraine until 2030 and be based on the planning system: state strategy - regional strategy - community strategies. Examples of successful implementation of circular practices in various countries and enterprises are highlighted. The article calls on the Government of Ukraine to actively implement circular principles in the country's economy in order to achieve greater sustainability, resource conservation and promote environmental responsibility in this important industry. Attention is focused on the fact that when forming a new model of the circular economy, it is necessary to take into account and connect the development of ecological innovations and, accordingly, the ecological economy.

THEORETICAL AND CONCEPTUAL BASIS OF ECOLOGICAL BUSINESS DEVELOPMENT

The state of development of ecological business in Ukraine today is characterized by a gradual increase in interest in sustainable development and the introduction of green technologies. The main obstacles remain imperfect legislation, lack of state support and funding, lack of proper infrastructure and insufficient level of environmental awareness among the population. In this context, there is also a need to develop theoretical and conceptual foundations that will help to clearly define approaches, principles and models of ecological business development. The purpose of the article is to determine the theoretical and conceptual foundations of the development of ecological business. The current state of development of ecological business in Ukraine is analyzed. It is noted that the development of ecological business is of key importance for the post-war reconstruction of Ukraine, as it contributes to the creation of a sustainable and environmentally responsible economy. It has been established that the development of ecological business can help Ukraine adapt to new international standards and requirements for sustainable development, which will contribute to the country's integration into global economic processes. The necessity and importance of researching the theoretical foundations of ecological business development in the context of the domestic economy has been proven. The components of the theoretical and conceptual foundations of the formation and development of ecological business are defined and revealed. The prospects for the development of ecological business in Ukraine are analyzed. Thus, ecological business is based on several key theoretical foundations, including the concept of sustainable development, the theory of natural capital, and the circular economy model. The conceptual foundations of the development of ecological business include the principles of ecological management, innovativeness and ecological technologies, as well as social responsibility of business. It is noted that for the further development of ecological business in Ukraine, a clear strategy is needed, which will include stimulating investments, improving legislation, developing infrastructure and increasing environmental awareness of society.

The Distributive Impact of Unconventional Monetary Policies: Old and New

ABSTRACT In this paper we analyze the impact of less conventional monetary policy tools on the personal and functional distribution of income. We focus on the issuance of central bank digital currency (CBDC) in a comparative perspective, using a stock-flow consistent model of the eurozone economy. We consider two kinds of policies: helicopter money policies such as Quantitative Easing and the issuance of a CBDC; and scenarios not based on balance sheet expansions, such as an interest rate policy following the Pasinetti Rule, or a sterilized issuance of CBDC. Monetary policies using CBDCs tend to increase the wage share at the expense of financial rents. The targeted issuance of CBDCs to firms might produce an increase in GDP, corporate profits, and the wage share. The Pasinetti Rule reduces personal income inequality the most, but if applied mechanically, its impact on growth is also the least desirable.

Capital misallocation and economic development in a dynamic open economy

Some countries, such as Canada, Italy, and Mexico, have experienced a higher growth rate of capital per worker but a lower growth rate for GDP per worker compared to the United States. This paper explains these two facts through the lens of a dynamic multisector open economy model where capital flows across countries. In the model, firms face sector-specific distortions on capital and intermediate inputs that influence the actual rate of return on capital and the aggregate total factor productivity (TFP). We calibrate the model to Mexico for the period 2000-2014 and show that changes in sectoral distortions and productivities reduced the actual rate of return on capital, triggering capital accumulation and a reduction in TFP. The results show that aggregate output decreased by 7.3% and aggregate capital increased by 10.6%. From 33 sectors (out of 48) that suffered productivity losses, approximately 50% accumulated more capital. Furthermore, the capital-intensive sectors explain 82% of the capital-output ratio increase.

Preliminary Study of Stone Sawing Sludges-based Alkali Activated Materials (AAMs) for the Conservation of Archaeological Ceramics

This paper presents research into the feasibility of using stone sawing sludge-based Alkali Activated Materials (AAMs) for conservation of Cultural Heritage. Sawing sludges are a stone processing waste product resulting from the mixing of rock powder with the water used to cool down the cutting blades. The chemical composition of the sawing sludges, when aluminosilicatic, is suitable for acting as a precursor to produce AAMs. AAMs are known for their low environmental impact and versatility since their existence is drawn from recycling waste materials. One of their possible applications is in the conservation of Cultural Heritage objects. This work presents a preliminary investigation into three sawing sludge-based AAMs with different mineralogical compositions and contributes to formulating guidelines for applying them as fillers on modern and archaeological ceramic pottery based on the evaluation of their workability, appearance and physical properties over time from the moment of application and up to 30 days. Dynamic Vapor Sorption and X-Ray Diffraction results provided an overview of the structural and mineralogical changes under high RH conditions, where the tested AAMs showed a type II isotherm curve, as expected for concrete-like materials, as well as disappearance of thermonatrite after one isothermal cycle. Ultrasonic Pulse Velocity test demonstrated the general homogeneity of the AAMs despite the lower velocity exhibited by one of the formulations, probably due to its internal pore distribution and possible presence of microstratification. The Oddy tests, application tests and colourimetric measurements evidenced the advantages and weaknesses of the AAMs, with overall encouraging results ensuing investment in further in-depth studies of these innovative conservation materials in view of their future use in the field of conservation of Cultural Heritage as a result of a circular economy model.

Dressing the Future: The Bibliometric Interplay Between Sustainability and Fashion Studies Amidst the Neoliberal Era

The concept of sustainability has significantly influenced various industries, notably the fashion sector. This study conducts a thorough quantitative and qualitative analysis of the interplay between fashion studies and sustainability. Utilizing data from the Scopus database, 890 articles published between 2000 and 2023 were scrutinized through an integrated approach combining bibliometric and content analyses. The aim was to explore how sustainability, initially an economic notion, left its imprint on academic research in fashion studies. This research was accompanied by a critical assessment of the neoliberal context, which envisions a market-oriented political economy model in which the concept of sustainability emerged. Key findings include a steadily increasing emphasis on sustainability in fashion research. Notable journals leading the discourse include Sustainability, Journal of Fashion Marketing and Management, Journal of Cleaner Production, Fashion Practice, and International Journal of Fashion Design Technology and Education. Interestingly, while fashion is rooted in the arts, significant contributions emerged from researchers in diverse disciplines, reflecting the field’s interdisciplinary nature. The study identified five critical thematic clusters within: sustainable fashion design, sustainable fashion production, sustainable fashion marketing, sustainable fashion consumption, and the theoretical foundation in sustainable fashion. This research not only enriches the literature by mapping the trajectory of sustainability in fashion studies but also highlights the evolving nature of fashion research, bridging traditional boundaries and embracing a more holistic approach to sustainability.

Research on carbon emission reduction based on responsibility of four participants with consideration of circular economy factors in China

Abstract The complex relationship between carbon emissions and economic development has become a global issue. In China, the pressure to reduce carbon emissions is very great because the responsibility of four participants for economic activities has not been able to break away from the linear economic model of ‘produce-consume-discard’. In this paper, four categories of participants, namely extractors/producers, manufacturers, consumers and recyclers, are classified according to the life cycle framework, and the impact of their activities on carbon emission reduction is analysed taking into account circular economy factors. The results of the study show that during the rapid development of China’s economy from 2005 to 2021, there is a significant correlation between carbon emission reduction and the activity behaviour of the four participants with consideration of circular economy factors. In particular, the activity behaviours of the extractors/producers, manufacturers and consumers have a very strong correlation with the carbon emission reduction. Our findings indicate that China should continue to exert efforts in the existing circular economy model to achieve the double carbon goals.

Commodity prices and production networks in small open economies

We study the role of domestic production networks in the transmission of commodity price fluctuations in small open economies. First, we present a tractable model of a small open economy's production network to explain sectoral propagation patterns. We demonstrate that the domestic production network is crucial in shaping the propagation of commodity prices. Using a panel of 31 sectors across 9 small open economies, we empirically confirm the model's predictions. Next, we construct a dynamic model of a small open economy featuring a production network to study the macroeconomic importance of the network structure in shaping both aggregate and sectoral responses to commodity price shocks. We show that: (i) the network-adjusted labor share of the commodity sector, rather than the sector's size, is key to understanding the real wage's response to commodity price fluctuations; and (ii) non-unitary elasticities of substitution in production are crucial for understanding the cross-sectional implications of these fluctuations.

Marine Ecosystems and Pollution: Intersection of Zoology and Law in Environmental Sustainability

Marine Biowaste, resulting from natural biological processes or human activities, seriously threatens the environment. Sources and impacts of Marine bio waste are discussed, classifying into two broad categories: Organic and Inorganic. Organic biowastes include those from aquaculture, agricultural runoff, industrial discharges, and urban runoff, while inorganic Biowaste include plastics, microplastics, metals, and synthetic materials. Those sources present pollution, habitat destruction, and impacts on marine species, which together drastically close the ecological balances. The role of zoology in Biowaste degradation is important, because it is concerned with the study of organisms responsible for breaking down organic wastes to make nutrients available. Both National and International legislation, such as UNCLOS and MMPA in the United States, provide a legal framework for the protection of Marine ecosystems from pollution and overexploitation. Advances in Marine biotechnology offer novel solutions to problems related to bio waste management, such as algal Biofuels and integrated waste management systems. Synthetically, biology trends, adaptation of climate change, and models of the circular economy provide potential solutions for future research and sustainable practices. This paper gives reasons for full strategies of Biowaste management with a view towards the preservation of Marine ecosystems and assurance of Environmental sustainability.

HMAE: a high-fidelity multi-agent simulator for economic phenomenon emergence

Economic models based on multi-agents are increasingly attracting attention and can provide a new perspective for exploring the causes behind social phenomena at the individual level. Existing research usually adopts society-level learning methods, and more research on micro-level heterogeneity among individuals is needed. For this, we propose a high-fidelity multi-agent economy (HMAE) model based on evolutionary game theory, including three types of agents: workers, firms, and the government. In particular, we characterize worker heterogeneity regarding laziness factors, work endowments, and commuting distances. These agents continuously and iteratively update their strategies by randomly exploring and imitating their neighbors to maximize their utility value. We simulated the evolution process of agent behavioral decisions through experiments and found that individual heterogeneity can significantly affect the decisions of workers and firms. These phenomena are consistent with some economic evolution trends in real life, and our research can provide an analytical tool for analyzing the causes of emerging economic phenomena.

A study on 5-cycle fuel economy prediction model of electric vehicles using numerical simulation

This paper is a study on 5-cycle fuel economy prediction model of electric vehicles using numerical simulation. It aims to develop a prediction model for the energy efficiency of electric vehicles and compare it with the results of chassis dynamometer tests. Driving tests were conducted on a chassis dynamometer, which included various test cycles of the 5-cycle test. Using MATLAB Simulink, a vehicle dynamics analysis model for electric vehicles was constructed, and analytical research was conducted focusing on light-duty electric vehicles. By comparing and analyzing the experimental data obtained from the chassis dynamometer with the data calculated through simulation, it is possible to verify the accuracy of the electric vehicle energy efficiency prediction model. And the reliability of the simulation model was secured by comparing the experimental data obtained through chassis dynamometer test with the simulation results of the developed electric vehicle energy efficiency prediction model. There is good agreement between the experimental and simulation results. In most areas, the error rate remains below 3 %, indicating that the simulation model closely follows the experimental results from the chassis dynamometer. Based on these results, it is expected that the developed simulation model can be utilized for measuring the energy efficiency of electric vehicles.

Novel Bioplastic Based on PVA Functionalized with Anthocyanins: Synthesis, Biochemical Properties and Food Applications.

Over the last ten years, researchers' efforts have aimed to replace the classic linear economy model with the circular economy model, favoring green chemical and industrial processes. From this point of view, biologically active molecules, coming from plants, flowers and biomass, are gaining considerable value. In this study, firstly we focus on the development of a green protocol to obtain the purification of anthocyanins from the flower of Callistemon citrinus, based on simulation and on response surface optimization methodology. After that, we utilize them to manufacture and add new properties to bioplastics belonging to class 3, based on modified polyvinyl alcohol (PVA) with increasing amounts from 0.10 to 1.00%. The new polymers are analyzed to monitor morphological changes, optical properties, mechanical properties and antioxidant and antimicrobial activities. Fourier transform infrared spectroscopy (FTIR) spectra of the new materials show the characteristic bands of the PVA alone and a modification of the band at around 1138 cm-1 and 1083 cm-1, showing an influence of the anthocyanins' addition on the sequence with crystalline and amorphous structures of the starting materials, as also shown by the results of the mechanical tests. These last showed an increase in thickening (from 29.92 μm to approx. 37 μm) and hydrophobicity with the concomitant increase in the added anthocyanins (change in wettability with water from 14° to 31°), decreasing the poor water/moisture resistance of PVA that decreases its strength and limits its application in food packaging, which makes the new materials ideal candidates for biodegradable packaging to extend the shelf-life of food. The functionalization also determines an increase in the opacity, from 2.46 to 3.42 T%/mm, the acquisition of antioxidant activity against 2,2-diphenyl-1-picrylhdrazyl and 2,2'-azino-bis-(3-ethylbenzothiazoline-6-sulfonic acid) radicals and, in the ferric reducing power assay, the antimicrobial (bactericidal) activity against different Staphylococcus aureus strains at the maximum tested concentration (1.00% of anthocyanins). On the whole, functionalization with anthocyanins results in the acquisition of new properties, making it suitable for food packaging purposes, as highlighted by a food fresh-keeping test.

Revolutionizing Entrepreneurship: Circular Business Models for a Sustainable Economy

This study delves into the implementation of circular business models within the entrepreneurial sector as a means to foster a sustainable economy. By conducting a qualitative review of the literature, the analysis includes academic publications and case studies that examine the principles, advantages, and challenges associated with the circular economy in entrepreneurship. The methodology involves synthesizing pertinent literature to identify effective strategies and common obstacles in adopting circular practices. The results indicate that, despite encountering financial constraints, a lack of expertise, and logistical difficulties, the circular economy presents substantial opportunities for innovation and environmental sustainability. These opportunities enhance competitiveness and contribute to long-term economic success. The discussion emphasizes the necessity of cross-sector collaboration, supportive policies, and educational programs to address these challenges. In conclusion, the research underscores the pivotal role of circular business models in transitioning to a sustainable economy, advocating for cooperative efforts among entrepreneurs, policy-makers, and academics to promote sustainable business practices that benefit both the environment and the economy.

Efficient adsorption of acid orange 7 from wastewater using novel bio-natural granular bentonite-sawdust-corncob (GBSC): Mixture optimization, adsorption kinetic and regeneration

The removal of dyes from industrial wastewater is one of the most environmental challenges that should be addressed through sustainable technologies. In this study, a novel green and cost-effective granular from bentonite and bio-wastes of sawdust and corncob (GBSC) was prepared for sustainable treatment of acid orange 7 (AO7) dye wastewater. The d-optimal mixture method was employed to determine the optimum combination of the GBSC in terms of dye adsorption and structure stability. Characterizations of the GBSC were investigated using SEM, XRD, FTIR and BET analyses and compared with bentonite powder (BP), modified bentonite powder (MBP), and granular modified bentonite (GMB). According to the results, a mixture of bentonite 60 wt%, sawdust 20 wt% and corncob 20 wt% at 550 °C yielded the optimal combination of the GBSC which resulted to the highest adsorption capacity 135.22 mg/g, the lowest mass loss 3.1% and maximum crushing strength 12.275 N. The kinetic and isotherm of the adsorption data were fitted well by the pseudo-second-order model and Langmuir isotherm. Our finding suggested a green circular economy model by utilizing agriculture wastes (sawdust and corncob) to synthesize GBSC for sustainable dye wastewater treatment, which offers a cost-effective adsorbent (0.907 $/g) with high regeneration (4 times reusability with 40.5% removal rate) to keep them in circulation for as long as possible.

Resource Recovery Monitoring and Circular Economy Model in Wastewater

Pressure on freshwater resources is constantly growing, while wastewater generation is increasing with population growth and industrial activity [...]

The network origins of trade comovement

I develop a production network model of the world economy that features Transcendental Logarithmic (a.k.a. translog) aggregators of varieties. This gives rise to variable substitution elasticities that consistent with the evidence are inversely related to the importer expenditure shares per exporter at the country-sector level. I quantify the model using data for 1970–2018 from 19 OECD economies and 30 sectors. Compared to the analogous constant elasticity version of the model, I find that the translog model amplifies international shock transmission between major trade partners and attenuates transmission elsewhere, which to an extent resolves the “trade comovement puzzle”.