Integrated mechanistic engineering models and macroeconomic input–output approach to model physical economy for evaluating the impact of transition to a circular economy

Abstract

Sustainable transition to low carbon and zero waste economy requires a macroscopic evaluation of opportunities and impact of adopting emerging technologies in a region. However, a full assessment of current physical flow and waste is a tedious task, thus leading to a lack of comprehensive assessment before scale up and adoption of emerging technologies. Utilizing the mechanistic models developed for engineering and biological systems with the macroeconomic framework of Input–Output models, we propose a novel integrated approach to fully map the physical economy, that automates the process of mapping industrial flows and wastes in a region. The approach is demonstrated by mapping the agro-based physical economy of the state of Illinois, USA by using mechanistic models for 10 agro-based sectors, which have a high impact on waste generation. Each model mechanistically simulates the material transformation processes in the economic sector and provides the necessary material flow information for physical economy mapping. The model for physical economy developed in the form of a Physical Input–Output Table (PIOT) captures the interindustry physical interactions in the region and waste flows, thus providing insight into the opportunities to implement circular economy strategies i.e., adoption of recycling technologies on a large scale. In Illinois, adoption of technologies for industrial waste-water and hog manure recycling will have the highest impact by reducing >62% of hog industry waste outputs, >99% of soybean hull waste, and >96% of dry corn milling (corn ethanol production) waste reduction. A small % reduction in nitrogen fertilizer manufacturing waste was also observed. The physical economy model revealed that the urea sector had the highest material use of 5.52 × 10⁸ tons and green bean farming with the lowest material use of 1.30 × 10⁵ tons for the year modeled (2018). The mechanistic modeling also allowed elemental flows across the physical economy to be captured, with the urea sector using 8.25 × 10⁷ tons of elemental carbon per operation-year (highest) and green bean farming using 3.90 × 10⁴ tons of elemental carbon per operation-year (least). The approach proposed here establishes a connection between engineering and physical economy modeling community for standardizing the mapping of physical economy that can provide insights for successfully transitioning to a low carbon and zero waste circular economy.