economics Paradigm Challenge

Obsessive recycling and "circular" goals are actually making it 17% more expensive to hit our climate targets.

SSRN · March 18, 2026 · 6430622

Kira West, André Faaij, Toon van Harmelen, Gert Jan Kramer, Vinzenz Koning

The Takeaway

While we often assume 'green' goals all work together, this model shows they often compete for the same scarce resources like biomass. Forcing a country to be 'circular' (reusing materials) creates massive system-wide costs and resource bottlenecks that can actually slow down the primary goal of cutting carbon emissions.

From the abstract

Based on an expanded, material-focused energy system model of the Netherlands, we examined the interaction between emissions reduction and circularity, material-energy tradeoffs, and feasibility of meeting both targets by 2050. We find that non-biogenic direct material input is reduced by about 70% in the optimal net zero emissions scenario, via fossil fuel reductions, circularity, and material efficiency measures, even without a constraint or material use. More stringent circularity targets, ho