The circular economy of Robinson Crusoe: Exploring the impact of the representative consumer

Abstract

The circular economy typically addresses waste recycling issues at the micro-level, primarily focusing on individual enterprises, and less frequently at the meso-level, such as regions. This article introduces a novel perspective by examining recycling processes not only at the macro level but also through the lens of the Robinson Crusoe economy (ERC). The ERC concept was originally proposed in the 1930s. In this new paradigm, a representative producer, embodying Robinson Crusoe, establishes a business structure that implements a circular economy mega-project. This project comprises individual mono-projects aimed at maximizing profits derived from waste recycling. On the other hand, a representative consumer (representing the state and society) seeks to maximize its inherent utility, including taxes and fees. Now, the focus shifts to Robinson Crusoe as a consumer, thus defining the objective of this study as identifying approaches to determining the macroeconomic effects associated with such consumption. The recycling of blast-furnace slags in Ukraine serves as a case study for analysis.