IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i5p4141-d1079577.html
   My bibliography  Save this article

Risk Analysis under a Circular Economy Context Using a Systems Thinking Approach

Author

Listed:
  • Sahar AlMashaqbeh

    (Department of Industrial Engineering, Faculty of Engineering, The Hashemite University, Zarqa, Jordan
    Advanced Manufacturing Engineering, University of Bradford, Bradford BD7 1DP, UK)

  • Jose Eduardo Munive-Hernandez

    (Advanced Manufacturing Engineering, University of Bradford, Bradford BD7 1DP, UK)

Abstract

Applying the circular economy (CE) concept is crucial for achieving sustainable development goals. A transition towards a CE requires new tools to clarify the interdependency among systems and assist policy-makers in their decisions, particularly in the risk assessment field. This paper analyzes the systemic effects and interdependencies of several risks in the context of a CE. The developed tool helps adopt proactive strategies that consider the four aspects of sustainability (economic, environmental, social, and technological). The adopted tool improves strategic thinking for a circular economy concept and supports organizations with respect to assessing risks. This paper aims to provide a comprehensive and novel model to quantify the priority weights of the sustainability risk indicators to provide guidelines for supporting the policy formulation process for decision-makers. In this paper, the taxonomy of various risk indicators has been proposed, and we have identified and adopted 40 risk indicators for the CE. This paper focuses on understanding how risks can be constructed and how they affect the performance of power plants over time in terms of availability, efficiency, and operational and maintenance cost. The causal loop diagram (CLD) model is built by deploying various risk quantifications, and the adopted tool was tested and validated to assess the CE risks relevant to the environmental perspective in power plants in the Middle East. The risk indicators under the concept of the CE model and the system thinking approach can help policy-makers in their strategic and operational decision-making process for achieving a better understanding of the risk assessment process. The taxonomy of risk categories and its linking with the system thinking approach will help in the successful and effective implementation of a CE in the energy sector in the long-term. The proposed model offers a tool for policy-makers to design policies when planning a CE.

Suggested Citation

  • Sahar AlMashaqbeh & Jose Eduardo Munive-Hernandez, 2023. "Risk Analysis under a Circular Economy Context Using a Systems Thinking Approach," Sustainability, MDPI, vol. 15(5), pages 1-17, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4141-:d:1079577
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/5/4141/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/5/4141/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gianmarco Bressanelli & Marco Perona & Nicola Saccani, 2019. "Assessing the impacts of circular economy: a framework and an application to the washing machine industry," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 18(3), pages 282-308.
    2. Kiviranta, Kirsikka & Thomasson, Tomi & Hirvonen, Jonne & Tähtinen, Matti, 2020. "Connecting circular economy and energy industry: A techno-economic study for the Åland Islands," Applied Energy, Elsevier, vol. 279(C).
    3. Afshin Jamshidi & Daoud Ait-kadi & Angel Ruiz & Mohamed Larbi Rebaiaia, 2018. "Dynamic risk assessment of complex systems using FCM," International Journal of Production Research, Taylor & Francis Journals, vol. 56(3), pages 1070-1088, February.
    4. Yigit Kazancoglu & Esra Ekinci & Sachin Kumar Mangla & Muruvvet Deniz Sezer & Yasanur Kayikci, 2021. "Performance evaluation of reverse logistics in food supply chains in a circular economy using system dynamics," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 71-91, January.
    5. Emmanuel Garbolino & Jean‐Pierre Chery & Franck Guarnieri, 2016. "A Simplified Approach to Risk Assessment Based on System Dynamics: An Industrial Case Study," Risk Analysis, John Wiley & Sons, vol. 36(1), pages 16-29, January.
    6. Aslani, Alireza & Helo, Petri & Naaranoja, Marja, 2014. "Role of renewable energy policies in energy dependency in Finland: System dynamics approach," Applied Energy, Elsevier, vol. 113(C), pages 758-765.
    7. Jay W. Forrester, 1968. "Industrial Dynamics--After the First Decade," Management Science, INFORMS, vol. 14(7), pages 398-415, March.
    8. I. A. Vera & L. M. Langlois & H. H. Rogner & A. I. Jalal & F. L. Toth, 2005. "Indicators for sustainable energy development: An initiative by the International Atomic Energy Agency," Natural Resources Forum, Blackwell Publishing, vol. 29(4), pages 274-283, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lidia Luty & Monika Zioło & Wioletta Knapik & Iwona Bąk & Karol Kukuła, 2023. "Energy Security in Light of Sustainable Development Goals," Energies, MDPI, vol. 16(3), pages 1-18, January.
    2. Behnam Zakeri & Samuli Rinne & Sanna Syri, 2015. "Wind Integration into Energy Systems with a High Share of Nuclear Power—What Are the Compromises?," Energies, MDPI, vol. 8(4), pages 1-35, March.
    3. Masechaba Nthunya & Nien-Tsu Tuan & Corrinne Shaw & Ian Jay, 2017. "A Systemic Exploration of Lesotho’s Basic Education through Interactive Management," Systemic Practice and Action Research, Springer, vol. 30(3), pages 257-276, June.
    4. repec:aud:audfin:v:21:y:2019:i:50:p:75 is not listed on IDEAS
    5. Karolis Andriuškevičius & Dalia Štreimikienė & Irena Alebaitė, 2022. "Convergence between Indicators for Measuring Sustainable Development and M&A Performance in the Energy Sector," Sustainability, MDPI, vol. 14(16), pages 1-23, August.
    6. Marcos Ferasso & Tatiana Beliaeva & Sascha Kraus & Thomas Clauss & Domingo Ribeiro‐Soriano, 2020. "Circular economy business models: The state of research and avenues ahead," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3006-3024, December.
    7. Luis Camilo Ortigueira-Sánchez, 2017. "Influencing factors on citizen safety perception: systems and broken windows theories," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 14(1), pages 95-111, March.
    8. David C. Lane, 2022. "Fons et origo: reflections on the 60th anniversary of Industrial Dynamics," System Dynamics Review, System Dynamics Society, vol. 38(3), pages 292-324, July.
    9. Hendalianpour, Ayad & Liu, Peide & Amirghodsi, Sirous & Hamzehlou, Mohammad, 2022. "Designing a System Dynamics model to simulate criteria affecting oil and gas development contracts," Resources Policy, Elsevier, vol. 78(C).
    10. Halkos, George E. & Aslanidis, Panagiotis – Stavros C., 2023. "Sustainable energy development in an era of geopolitical multi-crisis. Applying productivity indices within institutional framework," Resources Policy, Elsevier, vol. 85(PB).
    11. Becerra-Fernandez, Mauricio & Sarmiento, Alfonso T. & Cardenas, Laura M., 2023. "Sustainability assessment of the solar energy supply chain in Colombia," Energy, Elsevier, vol. 282(C).
    12. Sandu, Suwin & Yang, Muyi & Phoumin, Han & Aghdam, Reza Fathollahzadeh & Shi, Xunpeng, 2021. "Assessment of accessible, clean and efficient energy systems: A statistical analysis of composite energy performance indices," Applied Energy, Elsevier, vol. 304(C).
    13. Muhammad Shahid Mastoi & Hafiz Mudassir Munir & Shenxian Zhuang & Mannan Hassan & Muhammad Usman & Ahmad Alahmadi & Basem Alamri, 2022. "A Comprehensive Analysis of the Power Demand–Supply Situation, Electricity Usage Patterns, and the Recent Development of Renewable Energy in China," Sustainability, MDPI, vol. 14(6), pages 1-34, March.
    14. Dennis Gensch, 2001. "A Marketing-Decision-Support Model for Evaluating and Selecting Concepts for New Products," Interfaces, INFORMS, vol. 31(3_supplem), pages 166-183, June.
    15. George E. Halkos & Panagiotis-Stavros C. Aslanidis, 2023. "Addressing Multidimensional Energy Poverty Implications on Achieving Sustainable Development," Energies, MDPI, vol. 16(9), pages 1-30, April.
    16. Patrycjusz Zarębski & Dominik Katarzyński, 2023. "A Theoretical Framework for a Local Energy Innovation System Based on the Renewable Energy Case of Poland," Energies, MDPI, vol. 16(9), pages 1-24, April.
    17. Marzouk, Mohamed & Seleem, Noreihan, 2018. "Assessment of existing buildings performance using system dynamics technique," Applied Energy, Elsevier, vol. 211(C), pages 1308-1323.
    18. Debra Sandor & Sadie Fulton & Jill Engel-Cox & Corey Peck & Steve Peterson, 2018. "System Dynamics of Polysilicon for Solar Photovoltaics: A Framework for Investigating the Energy Security of Renewable Energy Supply Chains," Sustainability, MDPI, vol. 10(1), pages 1-27, January.
    19. Pilpola, Sannamari & Lund, Peter D., 2018. "Effect of major policy disruptions in energy system transition: Case Finland," Energy Policy, Elsevier, vol. 116(C), pages 323-336.
    20. DUMITRU Raluca-Ana-Maria & DUMITRU Marin, 2019. "Energy Component of Sustainable Development," International Conference on Economic Sciences and Business Administration, Spiru Haret University, vol. 5(1), pages 39-45, November.
    21. Blumberga, Dagnija & Blumberga, Andra & Barisa, Aiga & Rosa, Marika & Lauka, Dace, 2016. "Modelling the Latvian power market to evaluate its environmental long-term performance," Applied Energy, Elsevier, vol. 162(C), pages 1593-1600.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4141-:d:1079577. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.