Exploring a Methodological Approach to Assessing the Potential Impact of the Implementation of Circular Economy Strategies on Regional Economies Through Environmentally Extended Input-Output Tables

Abstract

This article is part of a research stream that aims to evaluate the impact of circular economy policies on greenhouse gas (GHG) emission reduction and the industrial structure of specific regions. Building upon previous research that generates a linear representation of GHG emissions along industrial value chains using environmentally extended input–output tables and employment data pertaining to the region’s industrial structure, the study analyses GHG emissions and employment in a three-dimensional space defined by the following axes: 1) productive sectors as homogeneous blocks of the market and technologies/products, 2) value chains as a set of interrelated and dependent activities involved in circular economy implementation and 3) the position of emissions in the value chain. The employed methodology aims to provide a framework to characterise both productive sectors and value chains, offering valuable insights into emission and employment dynamics. This approach facilitates a comprehensive understanding of the potential implications of circular economy initiatives on the overall structure of regional economies.