In this article, we investigated possibility to establish a recycling-based industrial system in Japan. For this purpose, a novel mathematical model was first developed for the recycling-based system by expanding input-output analysis. Utilizing this model, we clarified several significant implications on the possibility of the recycling-based system and the prices of recycled goods. Then various recycling technologies were evaluated to clarify how these technologies could contribute to establish the system as well as to mitigate global warming.
Next we developed an optimization model of the entire industrial systems in Japan, including conventional and emerging technologies on waste disposal and recycling. Various institutions on the recycling system were investigated utilizing this model. These include prices of recycled goods and tradeoff relationships between promotion of recycling and reduction of CO
2 emissions. In particular, evaluated results showed that shadow price of recycled goods did not necessarily become positive. We also proposed a novel institution on the recycling system as “Waste dumping permit” in Japan. In conclusion, we clarified a desirable strategy so as to establish the recycling-based system, as well as to mitigate global warming.
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