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http://dx.doi.org/10.15266/KEREA.2021.30.2.269

Economic and Environmental Impact of the Bioplastics Industry: A Recursive Dynamic CGE Approach  

Son, Wonik (Environmental Planning Institute, Seoul National University)
Hong, Jong Ho (Graduate School of Environmental Studies, Environmental Planning Institute and Institute for Sustainable Development, Seoul National University)
Publication Information
Environmental and Resource Economics Review / v.30, no.2, 2021 , pp. 269-297 More about this Journal
Abstract
Bioplastics are attracting attention as a substitute for conventional petroleum-based plastics because they are carbon neutral and can be biodegradable. This study estimated economic and environmental impact of regulating the petroleum-based plastics industry and fostering the bioplastics industry using a Recursive Dynamic CGE Model of the Korean Economy. Results show that the regulation of the conventional plastics industry exhibits a positive environmental impact by reducing greenhouse gases and plastic waste and a negative economic impact with a decrease in GDP. Meanwhile, fostering the bioplastics industry with regulation on conventional plastics industry has similar levels of greenhouse gas and waste reduction effects when there is only regulation on the conventional plastics industry. It is also shown that expanding the production of bioplastics industry offsets existing economic losses as a form of increased GDP. If petroleum-based plastics are replaced through the expansion of bioplastics production, it can contribute to the decoupling of greenhouse gas emissions and plastic waste from economic growth.
Keywords
Bioplastics; Raw material replacement; GHG; Plastics; GDP; Decoupling; Recursive Dynamic CGE;
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