Skip to main content

Advertisement

SpringerLink
Log in

Write circular economy, read economy’s circularity. How to avoid going in circles

  • Original Paper
  • Published:
Economia Politica Aims and scope Submit manuscript

Abstract

Enthusiasm for the Circular Economy (CE) is widespread and overwhelming. However, confusion around its meaning and purpose still pervades the scientific debate. Our study has two objectives. The first one is to increase the theoretical clarity and the scientific relevance of this debate. An important step forward in this direction is the idea of economy’s circularity, which we introduce following a critical re-visitation of CE’s notion. The second objective is to study the environmental effects of circularity. Our notion of economy’s circularity is theoretically rooted in the materials-energy balance model, and points to the presence of circular matter and energy flows in the economy. A major strength of this definition is the conceptual separation of circularity (as an economy’s feature) from the strategies (e.g. recovery, remanufacturing, reusing…) for its implementation. On one hand, this separation prompts the construction of a coherent framework, which helps shed light on the entire debate. On the other hand, it paves the way towards a novel methodology for studying any type of circularity effect. Circularity effects are indeed the effects of circularity strategies. Since strategies are constantly evolving, this approach delivers an immediate result. Circularity effects are unavoidably ambiguous. With reference to the effects on the environment, we provide evidence for this ambiguity by accurately selecting and reviewing studies on various circularity strategies. In a policy perspective, our findings seriously challenge the idea of implementing circularity for the sake of circularity. Indeed, using circularity as an environmental policy may prove quite a daunting task.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

Notes

  1. Because of these three features, we deem the notion of “economy’s circularity” theoretically preferable to the one of “circular economy”. From a terminological point of view, conceptual consistency would subsequently require dismissing the term “circular economy”. However, since we find this dismission nearly impossible at this point, we pragmatically accept the (terminologically) luckier term, yet with the caveats of the arguments put forward in this paper.

  2. Note that this equivalence does not contrast with the fact that higher circularity benefits from an overarching, systemic view. The realization of higher circularity in fact, passes in any case through a series of concrete projects with specific environmental effects.

  3. This is a cause for concern (in policy perspective) and a motivation for further research in this area.

  4. The authors do state their “intention to develop a representative sample of CE definitions” (Kirchherr et al. 2017, p. 222), but they disaffirm such intention a few lines thereafter. They conclude that their sample is “at least fairly representative [italics in original]” (Kirchherr et al. 2017, p. 222).

  5. These authors are for example, Mathews and Tan (2011), Wysokińska (2016), Sauvé et al. (2016), Geng and Doberstein (2008), Guo et al. (1997).

  6. The idea that loops can be closed is also regrettably present in authoritative policy documents (e.g. EC 2015; EIB 2017; OECD 2009).

  7. With regard to the materials-energy balance model, Pearce and Turner (1989) use two expressions (“circular economy” and “circular economic system”) to stress the circularity in the relationship between the economy and the environment. These terms stress the contrast with the case, in which scholars “ignore the environment” (Pearce and Turner 1989: 23), or they include it as a mere provider of natural resources. Pearce and Turner (1989) call this type of representation the “linear system”.

  8. The two broad categories of strategies for energy circularity correspondingly involve energy recovery from waste and energy recovery from energy waste streams, as in the case of kinetic energy recovery systems (e.g. Diaz-Elsayed et al. 2009) or waste heat recovery systems (e.g. Kurle et al. 2016).

  9. We use the expression “providing” in the sense of “making available” to underline that circularity does not always require a production process in narrow sense, as for example in the case of energy cascading.

  10. In view of the aim of the paper, we neglect here the resource-related interpretation.

  11. We incidentally observe that the topic of the “origins” of the CE concept is per se an issue in the CE debate. There are in fact authors (e.g. Geissdoerfer et al. 2017; Kirchherr et al. 2017; Merli et al. 2018; Reicke et al. 2018) who hold that the notion of CE has a long “history” (Winans et al. 2017: 825), and authors (e.g. Sauvé et al. 2016) who believe in the “novelty” of this concept. Many authors (e.g. Andersen 2007; Heshmati 2015; Ghisellini et al. 2016; Su et al. 2013; Guo et al. 1997; Geissdoerfer et al. 2017; Lewandowski 2016) for example, attribute the concept of circular economy to Pearce and Turner (1989), who use this wording with a completely different meaning (see note 7) or even to Boulding (1966), who does not even use the word “circular” in his paper. Some authors (e.g. Geissdoerfer et al. 2017) include the blue economy among “the most relevant theoretical influences” (Geissdoerfer et al. 2017: 759) for the CE while others (e.g. Winans et al. 2017) believe that Rachel Carson’s book “Silent Spring” has inspired the CE concept.

  12. As far as this can be an asset (see Kirchherr et al. 2017 on this point), our definition of circularity is much shorter than its CE counterparts.

  13. For an application of the notion of umbrella concept to the CE see for example, Blomsma and Brennan (2017) and Sacchi Homrich et al. (2018).

  14. We are not aware of other similar systematization exercises.

  15. Other examples of supporting strategies are among others, waste management, the “reclassification of the materials into ““technical” and “nutrients”” Ghisellini et al. (2016, p. 16) and the information campaigns aiming at increasing consumers’ responsibility for material use and waste.

  16. Although our visualization does not make it explicit, supporting initiatives clearly vary from strategy to strategy.

  17. According to Reike et al. (2018), there are (at least) 38 different types of strategies (and supporting actions) beginning with “re”.

  18. Yet, most authors (e.g. Ghisellini et al. 2016; Kirchherr et al. 2017; Su et al. 2013; Heshmati 2015) include reducing in the their CE discourse.

  19. Research in Municipal Solid Waste (MSW) incineration, for example, dates back the 70’s (Zhou et al. 2015).

  20. Very optimistically, Preston (2012) deems that “The remaining energy needed for a CE would be provided by renewable sources.” (Preston 2012: 3).

  21. In their survey, Wang et al. (2016) list 4348 studies since 2000.

  22. Damgaard et al. (2010), p. 1247.

References

  • Allwood, J.M. (2014). Squaring the circular economy: the role of recycling within a hierarchy of material management strategies. In E. Worrell, M. Reuter (Eds.), Handbook of Recycling: State-of-the-art for Practitioners, Analysts, and Scientists (pp. 445–477).

  • Andersen, M. S. (2007). An introductory note on the environmental economics of the circular economy. Sustainability Science, 2, 133–140.

    Article  Google Scholar 

  • Ayres, R. U., & Kneese, A. V. (1969). Production, consumption and externalities. American Economic Review, 59, 282–297.

    Google Scholar 

  • Bhering Trindade, A., Escobar Palacio, J. C., González, A. M., Rúa Orozcob, D. J., Lora, E. E. S., Grillo Renó, M. L., et al. (2018). Advanced exergy analysis and environmental assesment of the steam cycle of an incineration system of municipal solid waste with energy recovery. Energy Conversion and Management, 157, 195–214.

    Article  Google Scholar 

  • Beylot, A., & Villeneuve, J. (2013). Environmental impacts of residual Municipal Solid Waste incineration: A comparison of 110 French incinerators using a life cycle approach. Waste Management, 33, 2781–2788.

    Article  Google Scholar 

  • Bilitewski, B. (2012). The circular economy and its risks. Waste Management, 32(1), 1–2.

    Article  Google Scholar 

  • Blomsma, F., & Brennan, G. (2017). The emergence of circular economy. A new framing around prolonging resource productivity. Journal of Industrial Ecology, 21(3), 603–614.

    Article  Google Scholar 

  • Boulding, K. (1966). The economics of the coming spaceship earth. In H. Jarrett (Ed.), Environmental quality in a growing economy (pp. 3–14). Baltimore, MD: Resources for the Future/Johns Hopkins University Press.

  • Bocken, N. M. P., de Pauw, I., Bakker, C., & van der Grinten, B. (2016). Product design and business model strategies for a circular economy. Journal of Industrial and Production Engineering, 33, 308–320.

    Article  Google Scholar 

  • Boyden, A., Soo, V. K., & Doolan, M. (2016). The environmental impacts of recycling portable lithium-ion batteries. Procedia CIRP, 48, 188–193.

    Article  Google Scholar 

  • Charonis, G. (2012). Degrowth, steady state economics and the circular economy: three distinct yet increasingly converging alternative discourses to economic growth for achieving environmental sustainability and social equity. In World Economic Association Sustainability Conference 2012. Available at: http://sustainabilityconference2012.worldeconomicsassociation.org/wp-content/uploads/WEASustainabilityConference2012_Charonis_Alternative-Discoursesto-Economic-Growth.pdf.

  • Cherubini, F., Bargigli, S., & Ulgiati, S. (2009). Life cycle assessment (LCA) of waste management strategies: Landfilling, sorting plant and incineration. Energy, 34, 2116–2123.

    Article  Google Scholar 

  • Cucchiella, F., D’Adamo, I., & Gastaldi, M. (2017). Sustainable waste management: Waste to energy plant as an alternative to landfill. Energy Conversion and Management, 131, 18–31.

    Article  Google Scholar 

  • Daly, H. E. (1977). Steady State Economics: the economics of biophysical equilibrium and moral growth. San Francisco: Freeman.

    Google Scholar 

  • Damgaard, A., Riber, C., Fruergaard, T., Hulgaard, T., & Christensen, T. H. (2010). Life-cycle-assessment of the historical development of air pollution control and energy recovery in waste incineration. Waste Management, 30, 1244–1250.

    Article  Google Scholar 

  • de Jesus, A., Antunes, P., Santos, R., & Mendonça, S. (2018). Eco-innovation in the transition to a circular economy: An analytical literature review. Journal of Cleaner Production, 172, 2999–3018.

    Article  Google Scholar 

  • Diaz-Elsayed, N., Helu, M., Jarvis, A., Tönissen S., Dornfeld, D. A., & Schlosser, R. (2009). Strategies for minimum energy operation for precision machining. Proceedings of MTTRF 2009 Annual Meeting.

  • Dong, H., Geng, Y., Xi, F., & Fujita, T. (2013). Carbon footprint evaluation at industrial park level: a hybrid life cycle assessment approach. Energy Policy, 57, 298–307.

    Article  Google Scholar 

  • EC. (2008). Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on Waste and Repealing Certain Directives. Available at http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32008L0098&from=EN.

  • EC. (2013). EU Ecolabel for Consumers. Available: http://ec.europa.eu/environment/ecolabel/eu-ecolabel-for-consumers.html.

  • EC. (2015). Closing the Loop—an EU Action Plan for the Circular Economy. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52015DC0614.

  • EIB. (2017). The EIB in the circular economy. Available at http://www.eib.org/attachments/thematic/circular_economy_en.pdf.

  • Elia, V., Gnoni, M. G., & Tornese, F. (2017). Measuring circular economy strategies through index methods: A critical analysis. Journal of Cleaner Production, 142, 2741–2751.

    Article  Google Scholar 

  • EMF. (2012). Towards the Circular Economy: Economic and Business Rationale for an Accelerated Transition.

  • Faber, M., & Proops, J. L. R. (1993). Evolution, Time, Production and the Environment. Berlin: Springer.

    Book  Google Scholar 

  • Fischer-Kowalski, M., Krausmann, F., Giljum, S., Lutter, S., Mayer, A., Bringezu, S., et al. (2011). Methodology and indicators of economy-wide material flow accounting. Journal of Industrial Ecology, 15(6), 855–876.

    Article  Google Scholar 

  • Geissdoerfer, M., Savaget, P., Bocken, N. M. P., & Hultink, E. J. (2017). The circular economy—a new sustainability paradigm. Journal of Cleaner Production, 143, 757–768.

    Article  Google Scholar 

  • Geng, Y., & Doberstein, B. (2008). Developing the circular economy in China: Challenges and opportunities for achieving “leapfrog development”. The International Journal of Sustainable Development and World Ecology, 15, 231–239.

    Article  Google Scholar 

  • Genovese, A., Acquaye, A. A., Figuero, A., & Lenny Koh, S. C. (2017). Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications. Omega, 66, 344–357.

    Article  Google Scholar 

  • Georgescu-Roegen, N. (1971). The entropy low and the economic process. Harward University Press: Cambridge Mass.

  • Ghisellini, P., Cialani, C., & Ulgiati, S. (2016). A review on circular economy: The expected transition to a balanced interplay of environmental and economic systems. Journal of Cleaner Production, 114, 11–32.

    Article  Google Scholar 

  • Grimaud, G., Perry, N., & Laratte, B. (2016). Life cycle assessment of aluminium recycling process: Case of shredder cables. Procedia CIRP, 48, 212–218.

    Article  Google Scholar 

  • Guo, B., Geng, Y., Ren, J., Zhu, L., Liu, Y., & Sterr, T. (1997). Comparative assessment of circular economy development in China’s four megacities: The case of Beijing, Chongqing, Shanghai and Urumqi. Journal of Cleaner Production, 162, 234–246.

    Article  Google Scholar 

  • Haas, W., Krausmann, F., Wiedenhofer, D., & Heinz, M. (2015). How Circular is the Global Economy? An assessment of material flows, waste production, and recycling in the European Union and the World in 2005. Journal of Industrial Ecology, 19(5), 765–777.

    Article  Google Scholar 

  • Hahladakis, J. N., Velis, C. A., Weberb, R., Iacovidoua, E., & Purnella, P. (2018). An overview of chemical additives present in plastics: Migration, release, fate and environmental impact during their use, disposal and recycling. Journal of Hazardous Materials, 344, 179–199.

    Article  Google Scholar 

  • Heshmati, A. (2015). A review of the circular economy and its implementation. IZA Discussion Paper No. 9611.

  • Hirsch, P. M., & Levin, D. Z. (1999). Umbrella advocates versus validity police: A life-cycle model. Organization Science, 10(2), 199–212.

    Article  Google Scholar 

  • Jiao, W., & Boons, F. (2014). Toward a research agenda for policy intervention and facilitation to enhance industrial symbiosis based on a comprehensive literature review. Journal of Cleaner Production, 67, 14–25.

    Article  Google Scholar 

  • Jin, H., Afiuny, P., McIntyre, T., Yih, Y., & Sutherland, J. W. (2016). Comparative life cycle assessment of NdFeB magnets: Virgin production versus magnet-to-magnet recycling. Procedia CIRP, 48, 45–50.

    Article  Google Scholar 

  • Kalmykova, Y., Sadagopan, M., & Rosado, L. (2018). Circular economy—From review of theories and practices to development of implementation tools. Resources, Conservation & Recycling, 135, 190–201.

    Article  Google Scholar 

  • Kamigaki, K., Matsumoto, M., & Fatimah, Y. A. (2017). Remanufacturing and refurbishing in developed and developing countries in Asia—A case study in photocopiers. Procedia CIRP, 61, 645–650.

    Article  Google Scholar 

  • Kirchherr, J., Reike, D., & Hekkert, M. (2017). Conceptualizing the circular economy: An analysis of 114 definitions. Resources, Conservation and Recycling, 127, 221–232.

    Article  Google Scholar 

  • Kneese, A. V., Ayres, R. V., & d’Arge, R. C. (1970). Aspects of environmental economics: A materials balance-general equilibrium approach. Baltimore: John Hopkins University Press.

    Google Scholar 

  • Kurle, D., Schulze, C., Herrmann, C., & Thiede, S. (2016). Unlocking waste heat potentials in manufacturing. Procedia CIRP, 48, 289–294.

    Article  Google Scholar 

  • Landi, D., Vitali, S., & Germani, M. (2016). Environmental analysis of different end of life scenarios of tires textile fibers. Procedia CIRP, 48, 508–513.

    Article  Google Scholar 

  • Lewandowski, M. (2016). Designing the business models for circular economy. Towards the conceptual framework. Sustainability, 8(1), 1–43.

    Article  Google Scholar 

  • Mathews, J. A., & Tan, H. (2011). Progress toward a circular economy in China. Journal of Industrial Ecology, 5, 435–457.

    Article  Google Scholar 

  • Merli, R., Preziosi, M., & Acampora, A. (2018). How do scholars approach the circular economy? A systematic literature review. Journal of Cleaner Production, 178, 703–722.

    Article  Google Scholar 

  • Mugge, R., Jockin, B., & Bocken, N. (2017). How to sell refurbished smartphones? An investigation of different customer groups and appropriate incentives. Journal of Cleaner Production, 147, 284–296.

    Article  Google Scholar 

  • Nabavi-Pelesaraei, A., Bayat, R., Hosseinzadeh-Bandbafha, H., Afrasyabi, H., & Chau, K. (2017). Modeling of energy consumption and environmental life cycle assessment for incineration and landfill systems of municipal solid waste management—A case study in Tehran Metropolis of Iran. Journal of Cleaner Production, 148, 427–440.

    Article  Google Scholar 

  • OECD. (2009). Sustainable manufacturing and eco-innovation: Framework, practices and measurement. Paris: Organisation for Economic Cooperation and Development.

    Google Scholar 

  • OECD. (2017). The macroeconomics of the circular economy transition: a critical review of modelling approaches. Environment Directorate Environment Policy Committee. http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?cote=ENV/EPOC/WPRPW/WPIEEP(2017)1/FINAL&docLanguage=En

  • Pearce, D. W., & Turner, R. K. (1989). Economics of natural resources and the environment. Baltimore: The Johns Hopkins University Press.

    Google Scholar 

  • Perrings, C. (1987). Economy and environment: A theoretical essay on the interdependence of economic and environmental systems. Cambridge University Press.

  • Potting, J., Hekkert, M., Worrell, E., & Hanemaaijer, A. (2017). Circular economy: measuring innovation in the product chain. PBL Netherlands Environmental Assessment Agency. Policy Report 2544.

  • Preston, F. (2012). A Global Redesign? Shaping the Circular Economy. Briefing Paper. http://www.chathamhouse.org/sites/default/files/public/Research/Energy%20Environment%20and%20Development/bp0312_preston.pdf.

  • Rammelt, C., & Crisp, P. (2014). A systems and thermodynamics perspective on technology in the circular economy. Real-world Economics Review, 68, 25–40.

    Google Scholar 

  • Reike, D., Vermeulen, W. J. V., & Witjes, S. (2018). The circular economy: New or refurbished as CE 3.0?—Exploring controversies in the conceptualization of the circular economy through a focus on history and resource value retention options. Resources, Conservation & Recycling, 135, 246–264.

    Article  Google Scholar 

  • Sacchi Homrich, A., Galvão, G., Gamboa Abadia, L., & Carvalho, M. M. (2018). The circular economy umbrella: Trends and gaps on integrating pathways. Journal of Cleaner Production, 175, 525–543.

    Article  Google Scholar 

  • Sauvé, S., Bernard, S., & Sloan, P. (2016). Environmental sciences: sustainable development and circular economy: alternative concepts for trans-disciplinary research. Environmental Development, 17, 48–56.

    Article  Google Scholar 

  • Schut, E., Crielaard, M., & Mesman, M. (2015). Circular economy in the Dutch construction sector: A perspective for the market and government. http://www.rivm.nl/dsresource?objectid=806b288e-3ae9-47f1-a28f-7c208f884b36&type=org&disposition=inline.

  • Su, B., Heshmati, A., Geng, Y., & Yu, X. (2013). A review of the circular economy in China: Moving from rhetoric to implementation. Journal of Cleaner Production, 42, 215–227.

    Article  Google Scholar 

  • Tukker, A., Poliakov, E., Heijungs, R., Hawkins, T., Neuwahl, F., Rueda-Cantuche, J. M., et al. (2009). Towards a global multi-regional environmentally extended input–output database. Ecological Economics, 68, 1928–1937.

    Article  Google Scholar 

  • Tukker, A., Koning, A., Wood, R., Hawkins, T., Lutter, S., Acosta, J., et al. (2013). EXIOPOL—Development and illustrative analyses of a detailed global MR EE SUT/IOT. Economic Systems Research, 25(1), 50–70.

    Article  Google Scholar 

  • Wang, H., Hashimoto, S., Yue, Q., Moriguchi, Y., & Lu, Z. (2013). Decoupling analysis of four selected countries. Journal of Industrial Ecology, 17(4), 618–629.

    Article  Google Scholar 

  • Wang, Y., Lai, N., Zuo, J., Chen, G., & Du, H. (2016). Characteristics and trends of research on waste-to-energy incineration: a bibliometric analysis, 1999–2015. Renewable & Sustainable Energy Reviews, 66, 95–104.

    Article  Google Scholar 

  • Webster, K. (2015). The Circular Economy: a Wealth of Flows. Isle of Wight: Ellen MacArthur Foundation.

    Google Scholar 

  • van Weelden, E., Mugge, R., & Bakker, C. (2016). Paving the way towards circular consumption: exploring consumer acceptance of refurbished mobile phones in the Dutch market. Journal of Cleaner Production, 113, 743–754.

    Article  Google Scholar 

  • Winans, K., Kendall, A., & Deng, H. (2017). The history and current applications of the circular economy concept. Renewable and Sustainable Energy Reviews, 68, 825–833.

    Article  Google Scholar 

  • Wysokińska, Z. (2016). The “New” environmental policy of the European Union: a path to development of a circular economy and mitigation of the negative effects of climate change. Comparative Economic Research, 19(2), 57–73.

    Article  Google Scholar 

  • Yu, Y., Chen, D., Zhu, B., & Hu, S. (2013). Eco-efficiency trends in China, 1978e2010: decoupling environmental pressure from economic growth. Ecological Indicators, 24, 177–184.

    Article  Google Scholar 

  • Yuan, Z., Bi, J., & Moriguichi, Y. (2006). The circular economy; a new development strategy in China. Journal of Industrial Ecology, 10, 4–8.

    Article  Google Scholar 

  • Zhou, G. M., Peng, H., & Cao, F. Z. (2007). Circular economy and industrial eco-efficiency index system. City Environment and City Ecology, 6, 13–17. (in Chinese).

    Google Scholar 

  • Zhou, H., Meng, A., Long, Y., Li, Q., & Zhang, Y. (2015). A review of dioxin-related substances during municipal solid waste incineration. Waste Management, 36, 106–118.

    Article  Google Scholar 

Download references

Acknowledgments

We thank the participants to the Sixth IAERE Annual Conference and to the SEBE Department Seminar of the University of Southern Denmark for valuable critique and encouragement. We are profoundly indebted to two anonymous referees for contributing thoughtful and constructive comments, which greatly improved the original manuscript.

Author contribution

The idea of this research and the structure of the paper are due to Jacopo Zotti, who wrote Sections 1–3 and 5, and contributed to Section 4. Andrea Bigano analysed the relevant literature, wrote Section 4, contributed to Section 5 and provided useful comments to the whole paper.

Author information

Authors and Affiliations

  1. University of Trieste, Trieste, Italy

    Jacopo Zotti

  2. Euro-Mediterranean Center on Climate Change (CMCC), Lecce, Italy

    Andrea Bigano

  3. European Institute on Economics and the Environment (RFF-CMCC), Milan, Italy

    Andrea Bigano

  4. Ca’ Foscari University, Venice, Italy

    Andrea Bigano

Authors
  1. Jacopo Zotti
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Andrea Bigano
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Jacopo Zotti.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Zotti, J., Bigano, A. Write circular economy, read economy’s circularity. How to avoid going in circles. Econ Polit 36, 629–652 (2019). https://doi.org/10.1007/s40888-019-00145-9

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s40888-019-00145-9

Keywords

JEL Classification

Search

Navigation