Circular Economy and Project Economic Evaluation Methods: Methodological Proposal for Calculating Direct and Indirect Impacts
DOI:
https://doi.org/10.5020/2318-0722.2023.29.e12768Keywords:
circular economy, economic evaluation, effects method, input-output matrixAbstract
This article presents some methodological propositions aimed at integrating the direct and indirect impacts of the circular economy into traditional methods of economic evaluation of projects. After a brief historical analysis and classification of economic evaluation methods, a presentation is made of the steps required by the Method of Effects, which makes use of the concepts of national accounting systems and the input-output matrix to determine and evaluate the direct, indirect, and primary effects arising from its input and output flows concerning national economic objectives: economic growth, income distribution, fiscal balance and imbalance in external accounts. Then, the circular economy is discussed. It is a non-linear economic model that fits within the scope of sustainable development and objectives to produce goods and services, limiting the consumption and waste of raw materials, water, and natural resources. This article presents a concrete proposal for CE inclusion in economic evaluation methods based on the Method of Effects. After a presentation of the traditional linear model of the circular flow of income, the study proposes an expansion of the field of analysis of the Method of Effects, including the circular economy, to calculate the direct and indirect impacts
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