Abstract
Based on the findings of economic studies on the consequences of industrialization in emerging economies, this study aims to evaluate rotational economy processes in the Middle East and North Africa (MENA) using a Shannon entropy algorithm. An entropy-based analysis was performed for 19 MENA countries in the period 2000-2020. The modeling process involves constructing a hybrid index that consists of a weighted sum of all the indices developed by an algorithm based on Shannon's entropy. The weight assigned to each index in the analysis measures the importance of each index involved in developing the composite index. The results are similar to the international balancing, which combines and confirms the precision and reliability of this method.
TopIntroduction
The use of limited spatial resources raises many concerns for both governments and academics searching for the optimal solution to face the challenges of climate change or the growing demand in the consumer economy. The ratification of the Kyoto Protocol and its implementation in as many countries as possible will pave the way to combat pollution caused by industrial processes(Andersen, 2007). The transformation of a linear economy, based on the production-consumption-waste model, into circular economies, with the definition of revitalization and the production-consumption-reuse of resources, seems a mystery that does not exist today. Consumption pattern structure (Andersen, 2007; Bernstad Saraiva et al., 2018) investing in innovative equipment to protect the environment plays a key role in a rotating economy. Beyond the evolution of the classical model of economic growth (Baravalle et al., 2018), Anderson conceptualized an economic growth model to determine the main influencing factors, then using empirical data in an attempt to determine the economic factors that stimulate or inhibit the transition to a circular pattern(Andersen, 2007). The economic literature of the last ten years is abundant in the presentation of econometrics to determine the impact of waste management processes on economic activities in the context of the general equilibrium model (Cobo et al., 2018). For example, in Sweden, Ljunggren Söderman and others. (Cleary, 2009) To find the correct answer to the request of the Swedish Parliament to reduce the percentage of waste concerning the growth rate, he analyzed the relationship between the management of the solid waste program. It should be noted here that Sweden is among the countries with the highest rates of waste reuse and is among the EU member states in terms of classification. Cannon et al. (2018) examined the impact on GDP of hazardous waste from mining activities in South Africa. It should be noted that the two continents of Africa and Asia are in the last place in terms of waste reuse, while North America and Europe are at the top of the ranking and among the most industrialized countries. The impact of environmental policies on growth prospects has been studied by international organizations such as the Statistical Office of the European Union (OECD) (De Almeida & Borsato, 2019) and by European institutions, for example, the European Commission (EC). Highly industrialized and developed agricultural countries inevitably face environmental challenges. The preservation of ecosystems around the world is or should be a political priority. The United Nations Environment Program reflects these concerns. A prestigious organization with a valuable contribution to evaluating European environmental policies is the Allen MacArthur Foundation, established in 2010 to accelerate the transition to a circular economy. The Allen MacArthur Foundation report “Economic Growth - Circular Economy, Europe’s Competitive Outlook” (Georgescu-Roegen, 2013) shows that a high-tech circular economy enables Europe to increase productivity by up to 3% per year. According to this study, this initial benefit in 2030 will generate 0.6 trillion euros compared to current European economies, which will mean a GDP growth of 7% compared to the current scenario and positively impact employment.
Key Terms in this Chapter
Sustainable Development: Sustainable development is an organizing principle for meeting human development goals while simultaneously sustaining the ability of natural systems to provide the natural resources and ecosystem services on which the economy and society depend. The desired result is a state of society where living conditions and resources are used to meet human needs without undermining the integrity and stability of the natural system. Sustainable development can be defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Sustainability goals, such as the current UN-level Sustainable Development Goals, address the global challenges, including poverty, inequality, climate change, environmental degradation, peace, and justice.
Natural Resource Economics: Natural resource economics deals with the supply, demand, and allocation of the earth’s natural resources. One main objective of natural resource economics is to understand better the role of natural resources in the economy to develop more sustainable methods of managing those resources to ensure their future generations. Resource economists study interactions between economic and natural systems intending to develop a sustainable and efficient economy.
Circularity: A circular economy (also called “circularity”) is an economic system that tackles global challenges like climate change, biodiversity loss, waste, and pollution. Most linear economy businesses take a natural resource and turn it into a product destined to become waste because it has been designed and made. This process is often summarised by “take, make, waste.” By contrast, a circular economy uses reuse, sharing, repair, refurbishment, remanufacturing, and recycling to create a closed-loop system, minimize resource inputs, and create waste, pollution, and carbon emissions. The circular economy aims to keep products, materials, equipment, and infrastructure in use for longer, thus improving the productivity of these resources. Waste materials and energy should become input for other processes through waste valorization: either as a component or recovered resource for another industrial process or as regenerative resources for nature (e.g., compost). This regenerative approach contrasts with the traditional linear economy, which has a “take, make, dispose of” production model.
Circular Economy: A circular economy is an economic system of closed loops in which raw materials, components, and products lose their value as little as possible, renewable energy sources are used, and systems thinking is at the core.
Recycling: Recycling is the process of converting waste materials into new materials and objects. The recovery of energy from waste materials is often included in this concept. The recyclability of a material depends on its ability to reacquire the properties it had in its original state. It is an alternative to “conventional” waste disposal that can save material and help lower greenhouse gas emissions. It can also prevent the waste of potentially useful materials and reduce the consumption of fresh raw materials, reducing energy use, air pollution (from incineration), and water pollution (from landfilling).
Waste Valorization: Waste valorization, beneficial reuse, value recovery, or waste reclamation is the process of waste products or residues from an economic process being valorized (given economic value) by reuse or recycling to create economically useful materials. The term comes from practices in sustainable manufacturing, economics: industrial ecology, and waste management. The term is usually applied in industrial processes where residue from creating or processing one good is used as a raw material or energy feedstock for another industrial process. Industrial wastes, in particular, are good candidates for valorization because they tend to be more consistent and predictable than other waste, such as household waste.
Natural Resources: Natural resources are resources that exist without any actions of humankind. This includes the sources of valued characteristics such as commercial and industrial use, aesthetic value, scientific interest, and cultural value. It includes sunlight, atmosphere, water, land, all minerals, and all vegetation and animal life on earth. Natural resources can be part of our natural heritage or protected in nature reserves.