A MR EEIO-based framework for identifying synergies and trade-offs of circularity interventions

Abstract

In recent years, there has been an increase of studies exploring the potential socioeconomic and environmental impacts of a circular economy at country and regional level. However, understanding the potential trade-offs and synergies of circularity interventions remains limited. This paper presents a novel framework for identifying circularity trade-offs and synergies using a multi-regional environmentally extended input-output (MR EEIO) approach. By considering three key dimensions (impact, geographical, and sectoral), this framework offers a step-wise process for analyzing circularity trade-offs and synergies in a multi-dimensional and systematic manner. To demonstrate the application of the MR EEIO-based framework, a case study is conducted to identify key trade-offs and synergies of implementing circularity interventions in both the European Union and Latin American construction sector. This work contributes to a better understanding of the winners and losers of a global circularity transition, and facilitates the communication of circular economy scenarios to policymakers.