Recycling under environmental, climate and resource constraints

This paper investigates the recycling opportunities of an industrial sector constrained by resource, climate, and waste capacities. To do this, we model full lifecycle a good to consider greenhouse gas (GHG) emissions coming from both its production — virgin or recycled materials consumption. We identify optimal trajectories resources use, mainly depending on relative scarcity their emissions. Although is usually, correctly, noted as opportunity reduce impact consumption primary waste, also possible negative environmental consequences discuss resulting arbitrations. characterize strategy show that, in some cases, rate through time inverted U-shape, there can be catch-up phase at end social planner program. Finally, policy implications our identifying analyzing set tax-subsidy schemes, highlight existence standard externalities well positive externality linked absence market for waste.