Upstream economic instruments as circular economy drivers

No Thumbnail Available
Journal Title
Journal ISSN
Volume Title
School of Business | Bachelor's thesis
Electronic archive copy is available locally at the Harald Herlin Learning Centre. The staff of Aalto University has access to the electronic bachelor's theses by logging into Aaltodoc with their personal Aalto user ID. Read more about the availability of the bachelor's theses.
Date
2022
Major/Subject
Mcode
Degree programme
Taloustiede
Language
en
Pages
21
Series
Abstract
Municipal waste streams are expected to grow significantly in the nearest future. To address this issue, European policymakers are proposing new waste management reforms and waste-related directives that could alleviate the social burden of waste accumulation. The main basis of these policy guidelines is the promotion of recycling and the prevention of waste at its source. In this literature review, I briefly investigate the rationale for proposed circularity from an economic perspective. After that, the main focus of this thesis is on the producers of goods that act as decision-makers and through their choices can either support material circularity and waste prevention or conversely neglect socially preferable production methods. I find that social and private interests are not always aligned, and this contradiction can be addressed through the implementation of economic instruments. The main findings suggest that social efficiency can be improved, and conflicting interests can be corrected through instruments that mostly have the Pigouvian nature. Lastly, I finish my thesis with a brief discussion examining the potential risks and shortcomings of proposed market interventions.
Description
Thesis advisor
Stryjan, Miri
Keywords
waste management, recycling, economic instrument, Pigouvian, circular economy, taxation, extended producer responsibility, EPR
Other note
Citation