Natural capital depreciation, pollution damage and total factor productivity

Abstract

Green transition and digitalization help to address some of the key market failures that are hindering the transition to a circular economy, improving total factor productivity and resource efficiency. Green transition, digitalization, data, information and knowledge help improve the existing circular economy model and enable the development of new circular business models and best practices. The government needs to establish a policy framework that supports promoting digital circular activities while minimizing the risks that these activities bring.