Modelling of Materials Policies

This paper discusses the REAP1 model and its application for the analysis of CO₂ reduction and waste management policies for Japanese petrochemicals. The pros and cons of this modelling approach in comparison to other tools is elaborated. This is followed by a discussion of the model code and the modelling results. The results show that CO₂ policies can have significant impacts on waste flows and waste policies can have significant CO₂ benefits. As a consequence both effects must be considered in policy assessment. Pricing instruments are recommended instead of regulations because of the complex physical relations in the materials life cycle that extend beyond sector boundaries. A taxation approach is superior to a subsidy approach because rebound effects can be avoided.