A circular economy approach for sustainable economic development

Abstract

This paper focuses on the circular economy approach which is based on the principle of recycle of resources. It is an alternative to the existing linear economy that is based on the principle of 'take-make-dispose', which is unsustainable for economic growth due to limitation of resources in the world. This study especially set up a circular economy model for sustainable development in the frame work of endogenous economic growth incorporating waste as valuable stock for further production. The paper highlights (a) stock of waste accumulation, (b) dynamics of waste in closed-loop system and (c) economic growth path. Recycling economic activities contributes in the economic development with reuse of resources without degrading environment. This paper tangentially provides empirical support to our model for sustainable development.