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Sustainability 2016, 8(8), 717; doi:10.3390/su8080717

Policies for a More Dematerialized EU Economy. Theoretical Underpinnings, Political Context and Expected Feasibility

1
Fondazione Eni Enrico Mattei (FEEM), Milano 20123, Italy
2
Euro-Mediterranean Center on Climate Change (CMCC), Lecce 73100, Italy
3
Warszawski Instytut Studiów Ekonomicznych (WISE), Warszawa 02-001, Poland
4
Department of Political and Social Sciences, University of Trieste, Trieste 34127, Italy
*
Author to whom correspondence should be addressed.
Academic Editor: Vincenzo Torretta
Received: 9 February 2016 / Revised: 1 July 2016 / Accepted: 12 July 2016 / Published: 28 July 2016
View Full-Text   |   Download PDF [270 KB, uploaded 28 July 2016]

Abstract

Economic systems are connected to the natural environment through a continuous flow of energy and materials. The production of economic wealth implies the use of natural resources and their transformation into goods (bound to become, at least partially, waste in the future), current waste (pollution) and low-valued energy (entropy). The scarcity of natural resources and the negative externalities arising from their use throughout the entire value chain are quite natural motivations for the current policy push towards a more dematerialized and a more circular economy. In this perspective, the EU seems to be approaching a new frontier in environmental policy. The main contribution of this paper is a qualitative assessment of a coordinated set of dematerialization policies, which aim at fostering the socially efficient use (and re-use) of virgin materials at firm level. The policy mix we propose envisages a green tax reform (GTR) with a material tax, which aims at shifting relative input prices in favour of labour and capital, and a policy of funding research and development activities in the area of resource efficiency. In order to support firms in their transition to higher material efficiency, we foresee targeted skill enhancement programmes. Finally, to prevent firms to shift towards less material-intensive production, potentially leading to lower output quality, we complete the policy mix with specific command-and-control measures, aiming at setting minimum quality standards for selected product categories. The qualitative assessment of this mix of policies relies on the four basic criteria of the economic policy analysis (effectiveness, efficiency, equity and feasibility). Since the EU is deeply integrated in the world economy, and it is a net importer of virgin resources, our policy evaluation necessarily takes an open-economy perspective. In this vein, the paper reviews the state of affairs of the major world countries (USA, Japan and China in particular) on this issue, and contextualizes the EU action in a global perspective. View Full-Text
Keywords: dematerialization; absolute decoupling; resource efficiency; policy mixes; qualitative assessment dematerialization; absolute decoupling; resource efficiency; policy mixes; qualitative assessment
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Bigano, A.; Śniegocki, A.; Zotti, J. Policies for a More Dematerialized EU Economy. Theoretical Underpinnings, Political Context and Expected Feasibility. Sustainability 2016, 8, 717.

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