An Empirical Analysis of Resource Efficiency and Circular Economy of Pakistan: A CGE Analysis

Abstract

Resource efficiency and circular economy play a vital role in environmental and economic policy. In this paper we investigated empirical analysis of resource efficiency and circular economy of Pakistan a CGE analysis through GTAP. Resource efficiency and circular economy is normative concept which indicates increase of GDP quantity index, market price index of primary factors, volume of merchandise imports, Industry output, value of gdp, value of global merchandise exports, regional household income through recycling of material circulation and minimization of losses although staying within the limits of natural environment. More resources are being defined as critical which can be imputed to the linear economy of take, make and dispose. An alternative is to fulfil circular economy which could decrease several negative effects between other things resource depletion. Our simulation result of recycling has positive impact in economy of Pakistan. Resource efficiency and circular economy, the role of recycling is beneficial for Pakistan economy.