Skip to content
1887
Volume 64, Issue 1
  • ISSN: 2056-5135

Abstract

The circular economy (CE) is aimed at closing material loops by reducing and recovering resources in production and consumption processes. Many studies have discussed how CE helps companies create business opportunities while bringing environmental benefits. The business case for CE involves complicated issues such as industrial symbiosis, governmental interventions and the transformation of company culture. It is important to consider the whole context of CE when changing policies or business elements to optimise resource efficiency and avoid unsustainable consumption. By reviewing industry research reports and academic studies, this article summarises important circular business models and strategies and indicates current major barriers to CE. In addition, we explore multiple business cases and point out three important considerations that, if not used correctly, can lead to improper policies and environmental degradation when designing circular business models. These are (a) the use of biodegradable materials, (b) modular design for product life extension and (c) upcycling for new production processes. We then present a framework for companies to clarify vital considerations for resolving these issues based on systems thinking. The implications for business managers and policy makers are also discussed. This article serves to provide a better understanding of CE and explores how companies innovate in line with CE trends.

Loading

Article metrics loading...

/content/journals/10.1595/205651320X15710564137538
2020-01-01
2024-11-21
Loading full text...

Full text loading...

/deliver/fulltext/jmtr/64/1/Chen_16a_Imp.html?itemId=/content/journals/10.1595/205651320X15710564137538&mimeType=html&fmt=ahah

References

  1. A. Urbinati, D. Chiaroni, V. Chiesa, J. Clean. Prod., 2017, 168, 487 LINK https://doi.org/10.1016/j.jclepro.2017.09.047 [Google Scholar]
  2. N. Millar, E. McLaughlin, T. Börger, Ecol. Econ., 2019, 158, 11 LINK https://doi.org/10.1016/j.ecolecon.2018.12.012 [Google Scholar]
  3. “Towards the Circular Economy – An Economic and Business Rationale for an Accelerated Transition”, Vol. 1, Ellen MacArthur Foundation, Cowes, Isle of Wight, UK, 2013, 96 pp LINK https://www.ellenmacarthurfoundation.org/publications/towards-the-circular-economy-vol-1-an-economic-and-business-rationale-for-an-accelerated-transition [Google Scholar]
  4. W. McDonough, M. Braungart, “Cradle to Cradle: Remaking the Way We Make Things”, North Point Press, a division of Farrar, Straus and Giroux, New York, USA, 2002 [Google Scholar]
  5. J. Kirchherr, D. Reike, M. Hekkert, Resour., Conserv. Recycl., 2017, 127, 221 LINK https://doi.org/10.1016/j.resconrec.2017.09.005 [Google Scholar]
  6. M. Lieder, A. Rashid, J. Clean. Prod., 2016, 115, 36 LINK https://doi.org/10.1016/j.jclepro.2015.12.042 [Google Scholar]
  7. M. Kravchenko, D. C. A. Pigosso, T. C. McAloone, J. Clean. Prod., 2019, 241, 118318 LINK https://doi.org/10.1016/j.jclepro.2019.118318 [Google Scholar]
  8. E. Ünal, A. Urbinati, D. Chiaroni, J. Manufacturing Technol. Manag., 2019, 30, (3), 561 LINK https://doi.org/10.1108/jmtm-02-2018-0061 [Google Scholar]
  9. K. K. Cushing, P. L. Wise, J. Hawes-Davis, Environ. Impact Assess. Rev., 1999, 19, (5–6), 569 LINK https://doi.org/10.1016/S0195-9255(99)00027-X [Google Scholar]
  10. W. R. Stahel, “The Performance Economy”, 2nd Edn., Palgrave Macmillan, Basingstoke, UK, 2010, 349 pp [Google Scholar]
  11. A. Tukker, J. Clean. Prod., 2015, 97, 76 LINK https://doi.org/10.1016/j.jclepro.2013.11.049 [Google Scholar]
  12. J. T. Lyle, “Regenerative Design for Sustainable Development”, John Wiley and Sons Inc, New York, USA, 1994, 352 pp [Google Scholar]
  13. M. P. P. Pieroni, T. C. McAloone, D. C. A. Pigosso, J. Clean. Prod., 2019, 215, 198 LINK https://doi.org/10.1016/j.jclepro.2019.01.036 [Google Scholar]
  14. C.-W. Chen, Sustainability, 2018, 10, (7), 2452 LINK https://doi.org/10.3390/su10072452 [Google Scholar]
  15. J. Kirchherr, L. Piscicelli, R. Bour, E. Kostense-Smit, J. Muller, A. Huibrechtse-Truijens, M. Hekkert, Ecol. Econ., 2018, 150, 264 LINK https://doi.org/10.1016/j.ecolecon.2018.04.028 [Google Scholar]
  16. A. Urbinati, D. Chiaroni, G. Toletti, Sustainability, 2019, 11, (13), 3650 LINK https://doi.org/10.3390/su11133650 [Google Scholar]
  17. B. Mentink, ‘Circular Business Model Innovation – A Process Framework and a Tool for Business Model Innovation in a Circular Economy’, Masters Thesis, Delft University of Technology and Leiden University, Delft, The Netherlands, 29th April, 2014, 168 pp LINK https://repository.tudelft.nl/islandora/object/uuid%3Ac2554c91-8aaf-4fdd-91b7-4ca08e8ea621 [Google Scholar]
  18. E. Ünal, A. Urbinati, D. Chiaroni, R. Manzini, Resour., Conserv. Recycl., 2019, 146, 291 LINK https://doi.org/10.1016/j.resconrec.2018.12.034 [Google Scholar]
  19. ‘Circular Advantage – Innovative Business Models and Technologies to Create Value Without Limits to Growth’,Accenture, Dublin, Ireland, 2014, 24 pp LINK https://www.accenture.com/t20150523T053139__w__/usen/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Strategy_6/Accenture-Circular-Advantage-Innovative-Business-Models-Technologies-Value-Growth.pdf [Google Scholar]
  20. A. Smith-Gillespie, “Defining the Concept of Circular Economy Business Model”,R2Π, European Union, Brussels, Belgium, April, 2017, 23 pp LINK http://www.r2piproject.eu/wp-content/uploads/2017/04/Defining-the-Concept-of-Circular-Economy-Business-Model.pdf [Google Scholar]
  21. N. B. Jacobsen, J. Ind. Ecol., 2006, 10, (1–2), 239 LINK https://doi.org/10.1162/108819806775545411 [Google Scholar]
  22. F. Jégou, E. Manzini, “Collaborative Services: Social Innovation and Design for Sustainability”,Edizioni POLI.design, Milano, Italy, 2008, 202 pp LINK https://www.strategicdesignscenarios.net/wp-content/uploads/2012/05/EMUDE_Collaborative-Services.pdf [Google Scholar]
  23. W. R. Stahel, Nature, 2016, 531, (7595), 435 LINK https://doi.org/10.1038/531435a [Google Scholar]
  24. M. Ormazabal, V. Prieto-Sandoval, R. Puga-Leal, C. Jaca, J. Clean. Prod., 2018, 185, 157 LINK https://doi.org/https://doi.org/10.1016/j.jclepro.2018.03.031 [Google Scholar]
  25. E. Tam, K. Soulliere, S. Sawyer-Beaulieu, Resour., Conserv. Recycl., 2019, 145, 124 LINK https://doi.org/10.1016/j.resconrec.2018.12.030 [Google Scholar]
  26. S. Ritzén, G. Ö. Sandström, Proc. CIRP, 2017, 64, 7 LINK https://doi.org/10.1016/j.procir.2017.03.005 [Google Scholar]
  27. A. Murray, K. Skene, K. Haynes, J. Bus. Ethics, 2017, 140, (3), 369 LINK https://doi.org/10.1007/s10551-015-2693-2 [Google Scholar]
  28. J. Annamalai, Indian J. Occup. Environ. Med., 2015, 19, (1), 61 LINK https://doi.org/10.4103/0019-5278.157013 [Google Scholar]
  29. C. Vezzoli, F. Ceschin, J. C. Diehl, C. Kohtala, J. Clean. Prod., 2015, 97, 1 LINK https://doi.org/10.1016/j.jclepro.2015.02.061 [Google Scholar]
  30. ‘Shoes are Broken Even if They Haven’t Been Used Yet – Are Biodegradable Shoes Eco-Friendly?’,EBC, Taiwan, China, 12th June, 2016 (in Chinese) LINK https://news.ebc.net.tw/News/Article/25430 [Google Scholar]
  31. ‘This Taiwanese Company has Developed a “Biobased” Plastic that Decomposes 10 Times Faster Without a Change in Cost or Quality. It is Expected to Replace Petrochemical Plastic’,Social Enterprise Insight, Taiwan, China, 28th July, 2017 LINK https://en.seinsights.asia/2017/07/28/taiwanese-company-developed-biobased-plastic-decomposes-10-times-faster-without-change-cost-quality-expected-replace-petrochemical-plastic/ [Google Scholar]
  32. K. Medkova, B. Fifield, K. Cura, ‘Circular Design – Design for Circular Economy’, in “Lahti Cleantech Annual Review 2016”, ed. Lahti University of Applied Sciences, Lahti, Finland, 2016, pp. 32–47 LINK https://www.theseus.fi/bitstream/handle/10024/121322/LAMK_2016_24.pdf?sequence=2 [Google Scholar]
  33. K. Schischke, M. Proske, N. F. Nissen, K.-D. Lang, ‘Modular Products: Smartphone Design from a Circular Economy Perspective’, 2016 Electronics Goes Green (EGG), Berlin, Germany, 6th–9th September, 2016, IEEE, Piscataway, USA, 8 pp LINK https://doi.org/10.1109/EGG.2016.7829810 [Google Scholar]
  34. M. Lewandowski, Sustainability, 2016, 8, (1), 43 LINK https://doi.org/10.3390/su8010043 [Google Scholar]
  35. M. A. Gardetti, A. L. Torres, “Sustainability in Fashion and Textiles: Values, Design, Production and Consumption”, eds. Taylor and Francis, Abingdon, UK, 2013, 403 pp [Google Scholar]
  36. M. Cobbing, Y. Vicaire, ‘Fashion at the Cross Roads’,Greenpeace eV, Hamburg, Germany, 18th September, 2017, 108 pp LINK https://www.greenpeace.org/international/publication/6969/fashion-at-the-crossroads/ [Google Scholar]
  37. C.-J. Chou, C.-W. Chen, C. Conley, Res.–Technol. Manag., 2015, 58, (2), 48 [Google Scholar]
  38. P. Rosa, C. Sassanelli, S. Terzi, J. Clean. Prod., 2019, 231, 940 LINK https://doi.org/10.1016/j.jclepro.2019.05.310 [Google Scholar]
  39. J. Vlugter, “Scaling Recycled Plastics Across Industries”,Ellen MacArthur Foundation, Cowes, Isle of Wight, UK, March, 2017, 24 pp LINK https://www.ellenmacarthurfoundation.org/assets/downloads/ce100/Scaling-Recycled-Plastics-across-Industries.pdf [Google Scholar]
  40. X. Zhang, X. Ming, Z. Liu, Y. Qu, D. Yin, J. Clean. Prod., 2019, 230, 798 LINK https://doi.org/10.1016/j.jclepro.2019.04.382 [Google Scholar]
  41. L. Albareda, Corp. Gov., 2008, 8, (4), 430 LINK https://doi.org/10.1108/14720700810899176 [Google Scholar]
  42. C.-W. Chen, J. Clean. Prod., 2018, 198, 1007 LINK https://doi.org/10.1016/j.jclepro.2018.07.050 [Google Scholar]
  43. T. Hale, ‘97% Of Plastic Bottles Are Recycled Under Norway’s Radical Environmental Scheme’,IFLScience, London, UK, 11th March, 2019 LINK https://www.iflscience.com/environment/97-of-plastic-bottles-are-recycled-under-norways-radical-environmental-scheme/ [Google Scholar]
/content/journals/10.1595/205651320X15710564137538
Loading
/content/journals/10.1595/205651320X15710564137538
Loading

Data & Media loading...

  • Article Type: Research Article
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error
Please enter a valid_number test