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Digital Technologies, Circular Economy Practices and Environmental Policies in the Era of COVID-19

Author

Listed:
  • Syed Abdul Rehman Khan

    (School of Management and Engineering, Xuzhou University of Technology, Xuzhou 221018, China
    Beijing Key Laboratory of Urban Spatial Information Engineering, Beijing 100084, China)

  • Pablo Ponce

    (Carrera de Economía and Centro de Investigaciones Sociales y Económicas, Loja 110150, Ecuador)

  • George Thomas

    (Department of Marketing, College of Business Administration, Prince Sultan University, Rafah Street, Riyadh 11586, Saudi Arabia)

  • Zhang Yu

    (School of Economics and Management, Chang’an University, Xi’an 710054, China
    Department of Business Administration, ILMA University, Karachi 75190, Pakistan)

  • Mohammad Saad Al-Ahmadi

    (Information Systems & Operations Management Department, KFUPM Business School, King Fahd University of Petroleum and Minerals, Dhahran 31261, Saudi Arabia)

  • Muhammad Tanveer

    (Prince Sultan University, Rafah Street, Riyadh 11586, Saudi Arabia)

Abstract

The degradation of the environment is associated with economic activity, particularly with the linear way in which the economy does not make efficient use of resources. However, the circular economy is opposed to this linear paradigm, since it makes the most of the resources in trying to achieve zero waste. In this context, this study investigates the relationship between industry 4.0 technologies, COVID-19 outbreak, environmental regulation policies and circular economy practices. A questionnaire is designed to collect information from 214 big and private manufacturing firms in Ecuador, and subsequently, through CB-SEM, the information is processed, and the study paths are validated. The results suggest that industry 4.0 technologies and environmental regulation policies are driving circular economy practices during the pandemic. The study finds no evidence favoring COVID-19 being a determining factor in the adoption of the circular economy. The results provide a policy framework for the adoption of a circular economy.

Suggested Citation

  • Syed Abdul Rehman Khan & Pablo Ponce & George Thomas & Zhang Yu & Mohammad Saad Al-Ahmadi & Muhammad Tanveer, 2021. "Digital Technologies, Circular Economy Practices and Environmental Policies in the Era of COVID-19," Sustainability, MDPI, vol. 13(22), pages 1-14, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:22:p:12790-:d:682822
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    References listed on IDEAS

    as
    1. Levänen, Jarkko & Lyytinen, Tatu & Gatica, Sebastian, 2018. "Modelling the Interplay Between Institutions and Circular Economy Business Models: A Case Study of Battery Recycling in Finland and Chile," Ecological Economics, Elsevier, vol. 154(C), pages 373-382.
    2. Cheah, Jun-Hwa & Memon, Mumtaz Ali & Richard, James E & Ting, Hiram & Cham, Tat-Huei, 2020. "CB-SEM latent interaction: Unconstrained and orthogonalized approaches," Australasian marketing journal, Elsevier, vol. 28(4), pages 218-234.
    3. Syed Abdul Rehman Khan & Pablo Ponce & Muhammad Tanveer & Nathalie Aguirre-Padilla & Haider Mahmood & Syed Adeel Ali Shah, 2021. "Technological Innovation and Circular Economy Practices: Business Strategies to Mitigate the Effects of COVID-19," Sustainability, MDPI, vol. 13(15), pages 1-17, July.
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