'Transition Towards a Circular Economy: a heterogeneous agents approach'
This contribution aims to study the role of behavioral rationality of economic agents and the adaptive learning mechanism in the transition of the economy from a 'linear economy' state towards a limiting state of 'circular economy'. The latter is a state where residual waste is close to zero, waste generation per capita is reduced in absolute terms, and natural resources are managed in ways that enhance our society's resilience. The talk gives an overview of the resource efficiency and reflects both on the need to elaborate on policy pillars with a particular focus on the EU policy targets as well as changes in consumer and firm behavior and choices. Those policy pillars stem from the resource efficiency measures such as Dutch 'Ex'Tax' project and the application of TNO CGE modelling platform in our ongoing EU FP7 projects. At the micro/individual level, low investment in circular products can be explained by a seemingly low demand, as these products are likely to command a premium in the short term. However, demand of these types of products is affected by a range of other factors than prices, e.g. social norms, habits, social status. These behavioral aspect of resource efficiency is the main objective of a newly funded TNO project under 'Enabling Research Program in COMPLEXITY'. The talk concludes with a challenge in this project to develop a Heterogeneous Agent Model of a Complex Adaptive Circular Economy System (joint work with Hettie Boonman and Trond Husby).
Lunch will be provided for those attending the seminar.
For more information please contact Joep Lustenhouwer (J/K 2.09).