Analysis of Circular Economy From a Household Perspective in the USA

Abstract

In this chapter, the authors conduct original research on household emissions based on data from various sources in the literature. They analyze the extent of reduction of GHG emissions by adopting zero waste strategies by the households voluntarily, incurring no costs, but rather savings in wasteful expenditure. They then model this extent of reductions using a global computable general equilibrium (CGE) model to understand what could have been the carbon tax imposed to achieve this extent of GHG reduction. From the analysis, they find about 50% of GHG potential can be reduced from household emissions, as well as the associated life cycle emissions of products consumed. Reduced wasteful expenditure may facilitate both savings-led investments and the purchase of more green products by consumers, thereby boosting the economy. Therefore, they conclude that policies that incentivize zero waste lifestyle may go a long way in reducing the supposed tradeoff between the economy and the environment. They also review some strategies for the households, based on the literature, to minimize waste.