The effect of consumption and production policies on circular economy business models: A machine learning approach

The circular economy (CE) is attracting increasing interest, as it can bring environmental, social, and economic benefits. However, policymakers and scholars appear to concentrate more on the production side of CE, while consumption, and particularly policies that affect consumption have received less attention and their effect is ambiguous. This paper investigates the effect of CE consumption policies on circular economy business models (CEBMs) in firms, but also examines the interplay this type of policies have with CE production policies to have a broader picture of the circular economy policy framework and the relevance of each type of policy on firms. While previous studies assume rational and passive consumer behavior, this paper borrows from a natural resource-based view and stakeholder theory, arguing that consumers have a proactive attitude toward the consumption of environmentally friendly products. Moreover, we use institutional theory as an analytical framework for modeling the effects of a particular policy framework on the CEBM. Our analysis combines classical econometric methods with machine learning approaches, employing data from the EU. The results show that CE policies aimed at promoting consumption have a direct and positive effect on CEBMs. This paper also confirms that a wide portfolio of CE policies on production and consumption has a greater effect on the development of CEBMs, due to the complementarity of CE consumption and production policies. Moreover, we show that in interaction with CE production policies, CE policies on consumption have an even greater effect on CEBMs in firms than would have been anticipated.     

Exploiting the Potential of Public Procurement: Opportunities for Circular Economy

The objective of a circular economy (CE) is to maintain the value of products, materials, and resources in the economy by closing material loops and minimizing waste generation. In recent years, the role of public procurement has been recognized as an important, but as yet not fully exploited, opportunity by cities and municipalities in their transition toward circular societies. This study analyzed public procurement opportunities to promote CE. Different approaches and examples of circular public procurement were identified using case studies. In addition, opportunities to promote CE through sustainable and green public procurement policy were identified analyzing predefined sustainable or green public procurement criteria. The study concludes that public procurement can promote CE and related business models by setting criteria and requirements for the extension of product life spans, efficiency and/or intensity of use, and efficient cycling of biological or technical materials, as well as for the securing of clean and nonrisky cycles. Circular procurement can occur through the procurement of better‐quality products in circular terms, the procurement of new circular products, the use of business concepts that support the CE, and investments in circular ecosystems. Several sectors and product groups were identified as having potential for circular procurement, such as construction, waste, and wastewater management, transportation, food, and catering, furniture, and textiles. The study also suggests that the use of certain tools, such as performance‐based procurement, life cycle approach, and life cycle costing, as well as criteria concerning reuse and recycling of materials, could promote circular procurement. Market dialogue and cooperation between procurers and actors in the supply chains are important for the future development of circular procurement.     

A social panorama within the life cycle thinking and the circular economy: a literature review

Purpose

This literature review aims to present the current methodologies that have been developed to perform a social life cycle assessment (sLCA) and to display the main differences among them. In addition to that, to identify the nexus between sLCA and circular economy (CE) and to what extent this life cycle technique has been involved within CE studies.

Methods

An analysis of scientific literature using online databases was made. A total of 76 publications, including all industry sectors worldwide, were chosen spanning 11 years, from 2009 to 2020. Special attention was made to the methodology used to assess the social impacts, the impact categories analyzed, and whether there is or not a circular economy case. All the impact categories of both UNEP/SETAC and PSIA were taken into account when doing the review, and the top three of the categories are mentioned here.

Results and discussion

The leadership of the UNEP/SETAC methodology is clear with 58 cases. Almost 90% of the case studies are focused on products while the remaining ones are related with services. Workers are the most considered stakeholder when conducting an sLCA research, followed by local communities and society. Regarding the impact assessment, the performance reference point (PRP) was the most common method used. When considering the CE even when some cases included the end-of-life stage in the system boundaries, the studies did not consider the actors from that stage; excluding these cases, one out of four articles has a link with CE, a promising proportion taking into account the early stage of both concepts (i.e., sLCA and CE).

Conclusions

UNEP/SETAC guidelines seem to be the most promising methodology due to its reception among the scientific community. However, a more industry-oriented approach is proposed by the Roundtable for Product Social Metrics (PSIA) in a way to respond to manufacturing companies’ demand. Regardless of the type of methodology to be implemented, workers represent the key stakeholder when assessing social impacts. The change in usual patterns is leading to a change in the way how stakeholders interact and therefore new and more impacts may arise, and that is the reason why it is important to include the CE into the sLCA. A series of challenges such as the feasibility of aggregating all the life cycle techniques to one (life cycle sustainability assessment), data availability, and quality are still present for the moment.

     

Using life cycle assessment to achieve a circular economy

The International Journal of Life Cycle Assessment - The current global interest in circular economy (CE) opens an opportunity to make society’s consumption and production patterns more...     

The Relevance of Circular Economy Practices to the Sustainable Development Goals

This paper identifies the extent to which circular economy (CE) practices are relevant for the implementation of the Sustainable Development Goals (SDGs). The results of a literature review and a matching exercise to determine the relationship between CE practices and SDG targets show that CE practices, potentially, can contribute directly to achieving a significant number of SDG targets. The strongest relationships exist between CE practices and the targets of SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production), and SDG 15 (Life on Land). The paper also explores synergies that can be created through CE practices among several of the SDG targets. Furthermore, it identifies several potential trade‐offs between targets for decent work, safe working environments, human health and current CE practices relating to recycling of municipal waste, e‐waste and wastewater, and provides suggestions how these can be overcome. The paper concludes that CE practices can be applied as a “toolbox” and specific implementation approaches for achieving a sizeable number of SDG targets. Further empirical research is necessary to determine which specific types of partnerships and means of implementation are required to apply CE practices in the SDG context.     

工业园区循环经济关联与生态效率评价——以福建省蛟洋循环经济示范园区为例

工业园区因物质能量的高度集聚,生产-消费过程的网络关联,以及区域示范带动效应,在循环经济发展中受到持续关注。本研究以福建省蛟洋循环经济示范园区为例,应用物质流、生态网络和生态效率等测度分析方法,综合评估了2012—2016年间园区循环经济的网络关联和生态效率。研究结果表明:(1)园区物质流结构单一,关联度和稳定度明显较弱;(2)园区网络的韧性不足,关键节点的级联效应显著,尤其对中下游企业的影响程度大;(3)生态效率指数分析发现,园区关键节点企业在循环经济效益方面带动能力不足,影响园区循环经济的前景。为此,从园区网络关联稳定度和企业生态经济效率优化提升的角度,探讨园区未来的循环经济发展策略。可为处于起步阶段的专一化工业园区探索可行的循环经济模式提供借鉴。     

A matter of timing: System requirements for repair and their temporal dimensions

Research into repair within the circular economy (CE) typically focuses on technical aspects of design, policy, and markets, and often assumes simplified conditions for the user/owner and the product system to explain the barriers to scaling repair activities. However, factors occurring at pre-use stages of the product's life cycle can significantly influence whether, and to what extent, repair is viable or possible, that is, warranty duration, after-sale service provision, and access to necessities. The passing of time can directly and indirectly affect the ability, difficulty, and thus, the likelihood of repair activities being performed at each stage of the product's life cycle. Drawing from the literature and applying inductive systems-thinking tools, we propose a framework for considering the “System of Repairability.” We delineate how the passing of time (temporal dimensions) affects one's ‘‘ability to repair,’’ as a product progresses through different life cycle phases (i.e., breakdown vs. repair vs. disposal), and the point(s) at which the repair is considered or attempted (i.e., year of usage). By integrating life cycle and temporal (time-based) dimensions into a broad System of Repairability framework, we clarify relevant interconnections, iterations, sequences, and timing of decision points, stakeholders, and necessary conditions to facilitate an outcome of successful repair at the individual level, and thus intervention strategies for scaling repair within CE. We discuss how a policy mix can address the life cycle of products and the repair system more holistically. We conclude with a future outlook on how temporal dimensions can inform policy strategies and future research.     

面向生态文明的超循环经济:理论、模型与实例

在全球气候变化背景下,研究适应生态文明要求的新的经济运行模式——超循环经济的基本原理、结构模型、运行机理和实际应用。首先,运用系统结构分析方法梳理不同时期经济运行模式的演进过程:由"从摇篮到产品"的粗放经济,到"从摇篮到坟墓"的末端治理经济,再到"从摇篮到摇篮"的循环经济。延续这一绿色发展趋势,根据文明演化的共生理论和艾根创立的超循环理论,提出超循环经济的理论构想,并描绘"从孕育到孕育"的超循环经济的概念结构。其次,将超循环经济思想应用于林纸拓展系统(EFPS)。在分析中国造纸工业的发展现状和瓶颈及其与林业和生态环境相互关系的基础上,按照资源链、生态链和价值链(简称"三链",或3C)逐层拓展的逻辑顺序,研究EFPS超循环经济的系列结构模型。具体来说,依次建立起各层次的超循环结构模型——制浆造纸系统的资源链核心层模型、供应链系统的资源链拓展层模型、生态环境系统的生态链拓展层模型,以及社会经济系统的价值链拓展层模型。然后将各层次的结构模型综合起来,形成EFPS超循环经济的多重拓展-嵌套整体模型。该模型既能展示EFPS超循环经济系统的全貌,又包含其各层次的系统结构。因此既能为各级政府在制定国家和地区的循环经济总体发展规划时提供参考,又能为制造企业、营林组织、供应链、行业协会等各类经济主体的绿色经营决策提供支撑。最后,在上述实证研究的基础上进行理论提升。一方面提出超循环经济的5R原则:减量化、再循环、再利用、再分配和再培育。另一方面基于5R原则和3C循环链,构建5R-3C理论模型,并研究其5R-3C共生运行机理。研究表明,在超循环经济模式下,产业与生态系统可以实现互利共生的良性循环。以上研究成果的主要创新之处在于:在原理上,揭示了面向生态文明的超循环经济的概念结构、本质属性和5R原则;在机理上,创立了超循环经济的5R-3C模型及其共生运行机理;在实施上,以林纸拓展系统为例,为超循环经济理论的"落地生根"和推广应用构建了具体的多重拓展-嵌套模型。     

How to monitor environmental pressures of a circular economy: An assessment of indicators

Understanding how a circular economy (CE) can reduce environmental pressures from economic activities is crucial for policy and practice. Science provides a range of indicators to monitor and assess CE activities. However, common CE activities, such as recycling and eco‐design, are contested in terms of their contribution to environmental sustainability. This article assesses whether and to what extent current approaches to assess CE activities sufficiently capture environmental pressures to monitor progress toward environmental sustainability. Based on a material flow perspective, we show that most indicators do not capture environmental pressures related to the CE activities they address. Many focus on a single CE activity or process, which does not necessarily contribute to increased environmental sustainability overall. Based on these results, we suggest complementing CE management indicators with indicators capturing basic environmental pressures related to the respective CE activity. Given the conceptual linkage between CE activities, resource extraction, and waste flows, we suggest that a resource‐based footprint approach accounting for major environmental inputs and outputs is necessary—while not sufficient—to assess the environmental sustainability of CE activities. As footprint approaches can be used across scales, they could aid the challenging process of developing indicators for monitoring progress toward an environmentally sustainable CE at the European, national, and company levels.     

Product/Service‐Systems for a Circular Economy: The Route to Decoupling Economic Growth from Resource Consumption?

Product/service‐systems (PSS) that focus on selling service and performance instead of products are often mentioned as means to realize a circular economy (CE), in which economic growth is decoupled from resource consumption. However, a PSS is no implicit guarantee for a CE, and CE strategies do not necessarily lead to decoupling economic growth from resource consumption in absolute terms. Absolute resource decoupling only occurs when the resource use declines, irrespective of the growth rate of the economic driver. In this forum paper, we propose a two‐step framework that aims to support analyses of PSS and their potential to lead to absolute resource decoupling. In the first step, we present four PSS enablers of relative resource reduction that qualify as CE strategies. In the second step, three subsequent requirements need to be met, in order to successfully achieve absolute resource decoupling. Conditions and limitations for this accomplishment are discussed. Danish textile cases are used to exemplify the framework elements and its application. We expect that the framework will challenge the debate on the necessary conditions for CE strategies to ensure absolute resource decoupling.     

基于生态效率的江西省循环经济发展模式

循环经济发展模式的研究是当今可持续发展研究及政府相关决策的核心内容,生态效率则是循环经济的合适测度,它是资源能源效率和环境效率的综合表征指标。基于生态效率度量模型和循环经济发展模式的判别模型,以江西省为例,分析其在2000-2010年间循环经济发展模式的变化轨迹。结果表明:(1) 能源消耗与经济发展表现出同步增长的趋势;(2) 各种资源和环境效率均有所上升,其环境效率总体上大于资源效率,按效率增加快慢的排序为:固体废弃物排放效率 > 建设用地效率 > COD排放效率 > 水资源效率 > SO₂排放效率 > 能源效率;(3) 江西省循环经济发展走的是一条由传统线性经济模式到末端治理模式再到循环经济模式的发展道路,符合环境库兹尼茨曲线发展规律,即无害化→减量化→资源化。对研究方法的创新性进行了谨慎的探讨,对区域循环经济发展所应注意的问题提出的建议。     

The genetics of speciation: Insights from Fisher's geometric model

Research in speciation genetics has uncovered many robust patterns in intrinsic reproductive isolation, and fitness landscape models have been useful in interpreting these patterns. Here, we examine fitness landscapes based on Fisher's geometric model. Such landscapes are analogous to models of optimizing selection acting on quantitative traits, and have been widely used to study adaptation and the distribution of mutational effects. We show that, with a few modifications, Fisher's model can generate all of the major findings of introgression studies (including “speciation genes” with strong deleterious effects, complex epistasis and asymmetry), and the major patterns in overall hybrid fitnesses (including Haldane's Rule, the speciation clock, heterosis, hybrid breakdown, and male–female asymmetry in the F1). We compare our approach to alternative modeling frameworks that assign fitnesses to genotypes by identifying combinations of incompatible alleles. In some cases, the predictions are importantly different. For example, Fisher's model can explain conflicting empirical results about the rate at which incompatibilities accumulate with genetic divergence. In other cases, the predictions are identical. For example, the quality of reproductive isolation is little affected by the manner in which populations diverge.     

On the Attractiveness of Product Recovery: The Forces that Shape Reverse Markets

Product recovery is a major contributor for implementing sustainable business practices. Within such operations, which are either driven by legislation or economic rationales, practitioners face strategic issues concerning reverse market entry and positioning. Although the complexity of acting on reverse markets is widely acknowledged, a comprehensive framework to facilitate decision making in this area is lacking. In an attempt to fill that gap, we develop a model that supports original equipment manufacturers’ (OEMs’) assessment of the attractiveness of reverse markets. We identify, from a comprehensive literature analysis, in‐depth interviews, and engagement with a dozen companies from different countries, factors that influence key characteristics of reverse markets, and consolidate this lengthy list into a comprehensive model intuitively applicable to business practice. The model combines five forces that drive reverse markets: access to recoverable products; threat of independent recovery companies’ (IRCs’) market entry; rivalry for recoverable products; adverse effects on core business; and remarketing opportunities. We propose for each a set of attributes that influences its power and direction. To demonstrate the efficacy of the model, we apply it in two industry settings: recovery of white goods in the United Kingdom and paper recycling in Germany. The present research enables OEMs to understand the structure and forces that drive reverse markets, identify levers to influence those markets, anticipate market developments, and formulate resilient strategies for product recovery.     

Filopodial-Tension Model of Convergent-Extension of Tissues

In convergent-extension (CE), a planar-polarized epithelial tissue elongates (extends) in-plane in one direction while shortening (converging) in the perpendicular in-plane direction, with the cells both elongating and intercalating along the converging axis. CE occurs during the development of most multicellular organisms. Current CE models assume cell or tissue asymmetry, but neglect the preferential filopodial activity along the convergent axis observed in many tissues. We propose a cell-based CE model based on asymmetric filopodial tension forces between cells and investigate how cell-level filopodial interactions drive tissue-level CE. The final tissue geometry depends on the balance between external rounding forces and cell-intercalation traction. Filopodial-tension CE is robust to relatively high levels of planar cell polarity misalignment and to the presence of non-active cells. Addition of a simple mechanical feedback between cells fully rescues and even improves CE of tissues with high levels of polarity misalignments. Our model extends easily to three dimensions, with either one converging and two extending axes, or two converging and one extending axes, producing distinct tissue morphologies, as observed in vivo.     

Cancer stem cells modulate patterns and processes of evolution in cancers

The clonal evolution (CE) model and the cancer stem cell (CSC) model are two independent models of cancers, yet recent data shows intersections between the two models. This article explores the impacts of the CSC model on the CE model. I show that CSC restriction, which depends on CSC frequency in cancer cell populations and on the probability of dedifferentiation of cancer non-stem cells (non-CSCs) into CSCs, can favor or impede some patterns of evolution (linear or branched evolution) and some processes of evolution (drift, evolution by natural selection, complex adaptations). Taking CSC restriction into account for the CE model thus has implications for the way in which we understand the patterns and processes of evolution, and can also provide new leads for therapeutic interventions.     

Restorative and regenerative: Exploring the concepts in the circular economy

The most recognized definition of the circular economy is that it is a restorative and regenerative economy. Despite the wide use and importance attributed to the concepts of “restoration” and “regeneration,” they are rarely defined or explained in the circular economy literature. In this context, this study critically examines the two terms, while providing guidance on their future utilization and development. Specifically, the study investigates the origin of the concepts, their adoption in frameworks that anticipated the idea of the circular economy, and their connotations in the circular economy literature. The examination supports the need for clear and distinct definitions, combined with precision in usage. From a review of the literature, restoration is a better‐defined concept than regeneration, although it needs conceptual re‐enforcement relative to the biological/ecological aspects of the circular economy. This study suggests looking in the direction of restoration ecology, a well‐established branch of ecological research. Conversely, regeneration is a symbolic/evocative term with little practical application in the context of circular systems except in the case of certain agricultural practices. Until new conceptual developments intervene, regeneration does not seem to be applicable to the economy as a whole and because of this, might be abandoned as a guiding principle of the circular economy. Unlike regeneration, restoration can be considered a core principle because it has widespread application and can be a point of reference for circular applications. This does not preclude the possibility that other concepts may be needed to augment restoration.     

Cultural values on CSR patterns and evolution: A study from the biplot representation

Based on institutional and stakeholder theory, this study aims to observe the influence the cultural system has on the degree of responsibility of business behaviour and examines how normative isomorphism influences the Corporate Social Responsibility practices at the country level. We use the Hofstede model because its dimension group highlights the cultural similarities and differences between countries, and we measure CSR along five indicators referring to environmental and social dimensions. This study contributes to the literature by adopting a multi-region approach considering a sample of 6600 observations of 600 publicly-listed companies headquartered in 18 countries in Europe, North America, Japan and Australia, during the period 2004–2014. Given the multidimensional character of the data, we use the exploratory statistical techniques X-STATIS and HJ-biplot, since this allows us to approximate a large group of variables in a low-dimensional space, providing us with a useful visualisation of the structure of the data of the sample relative to the variables. Our main conclusion is that cultural dimensions exert important pressures on firms and their commitment, so, companies located in collectivist societies and, even more, in feminist ones, are characterised by the pursuit of the common good and place greater emphasis on social and environmental issues, thereby showing best CSR practices. Overall, the data does point to more activity in Northern than in Southern Europe, and show that companies respond to what is important in their own countries; for example, the Nordic countries give priority to social policies, while Japanese companies are more committed to the environment. Finally, our results evidence that companies worldwide adopt similar patterns of CSR practices, but their degree of development is strongly determined by the normative institutional characteristics.     

Lessons,narratives, and research directions for a sustainable circular economy

The current enthusiasm for the circular economy (CE) offers a unique opportunity to advance the impact of research on sustainability transitions. Diverse interpretations of CE by scholars, however, produce partly opposing assessments of its potential benefits, which can hinder progress. Here, we synthesize policy-relevant lessons and research directions for a sustainable CE and identify three narratives—optimist, reformist, and skeptical—that underpin the ambiguity in CE assessments. Based on 54 key CE scholars’ insights, we identify three research needs: the articulation and discussion of ontologically distinct CE narratives; bridging of technical, managerial, socio-economic, environmental, and political CE perspectives; and critical assessment of opportunities and limits of CE science–policy interactions. Our findings offer practical guidance for scholars to engage reflexively with the rapid expansion of CE knowledge, identify and pursue high-impact research directions, and communicate more effectively with practitioners and policymakers.     

Circular economy: A new research field?

Action to pursue the circular economy (CE) transition is burgeoning in the government and the private sector. Does this action signal that CE is a distinct field of research with a unique disciplinary identity? This article argues that CE has reached field status, through its own epistemic communities characterized by increasingly shared methodological perspectives and normative ideals, and through institutionalized knowledge development through research journals and authority structures. The recent growth of CE research points toward more contextualized and nuanced operationalizations of the concept, evidence that the field is approaching a threshold state of maturity. Drawing on observations from academic literature and discussions with researchers and experts, we trace the process by which CE has arrived at the status of a field. The article concludes with reflections on research directions.