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Leveraging Blockchain and Smart Contract Technologies to Overcome Circular Economy Implementation Challenges

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  • Nallapaneni Manoj Kumar

    (School of Energy and Environment, City University of Hong Kong, Kowloon, Hong Kong)

  • Shauhrat S. Chopra

    (School of Energy and Environment, City University of Hong Kong, Kowloon, Hong Kong)

Abstract

Adopting a circular economy (CE) has rapidly emerged among policymakers and business community stakeholders to promote material circularization and ensure sustainable development. While the inclination for a paradigm shift away from the linear economy is evident, many challenges have been quoted in the literature regarding its implementation. Lately, it has become common to propose Information and Communication Technologies (ICT)-based approaches to address these challenges. However, they do not question the practicality of the solutions in the context of CE. This paper aims to find an appropriate digital solution for CE implementation, which is not possible without a complete understanding of the existing challenges. A thorough literature review broadly classified the challenges under five barrier categories: Technological, Financial, Infrastructural, Institutional, and Societal, which was followed up with an investigation into the failure of ICT solutions to address CE challenges. Among the various technologies, blockchain and smart contract technologies show some promise as data-driven decision-making tools; however, they are not without their limitations when applied in the context of CE. This perspective explores the role of blockchain smart contract technology-scape in overcoming CE challenges and presents a circular economy blockchain (CEB) architecture development. The findings suggest that CEB may enable CE business models that improve trust and transparency in supply-chain networks, shared and performance economy platforms, stakeholder participation, and governance and management of organizations. Ultimately, this study highlights critical areas for research and development for the blockchainification of CE .

Suggested Citation

  • Nallapaneni Manoj Kumar & Shauhrat S. Chopra, 2022. "Leveraging Blockchain and Smart Contract Technologies to Overcome Circular Economy Implementation Challenges," Sustainability, MDPI, vol. 14(15), pages 1-18, August.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:15:p:9492-:d:878597
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    1. Luis E. Ruiz & Ana C. Pinho & David N. Resende, 2022. "3D Printing as a Disruptive Technology for the Circular Economy of Plastic Components of End-of-Life Vehicles: A Systematic Review," Sustainability, MDPI, vol. 14(20), pages 1-19, October.
    2. Vimal K.E. K & Sivakumar K & Jayakrishna Kandasamy & Vaibhav Venkat & Raghuraman Srinivasan Mani, 2023. "Barriers to the adoption of digital technologies in a functional circular economy network," Operations Management Research, Springer, vol. 16(3), pages 1541-1561, September.
    3. Caferra, Rocco & D'Adamo, Idiano & Morone, Piergiuseppe, 2023. "Wasting energy or energizing waste? The public acceptance of waste-to-energy technology," Energy, Elsevier, vol. 263(PE).
    4. Manoj Kumar, Nallapaneni & Chopra, Shauhrat S., 2023. "Integrated techno-economic and life cycle assessment of shared circular business model based blockchain-enabled dynamic grapevoltaic farm for major grape growing states in India," Renewable Energy, Elsevier, vol. 209(C), pages 365-381.
    5. Syed Mithun Ali & Andrea Appolloni & Fausto Cavallaro & Idiano D’Adamo & Assunta Di Vaio & Francesco Ferella & Massimo Gastaldi & Muhammad Ikram & Nallapaneni Manoj Kumar & Michael Alan Martin & Abdul, 2023. "Development Goals towards Sustainability," Sustainability, MDPI, vol. 15(12), pages 1-11, June.
    6. Tuğba Yeğin & Muhammad Ikram, 2022. "Performance Evaluation of Green Furniture Brands in the Marketing 4.0 Period: An Integrated MCDM Approach," Sustainability, MDPI, vol. 14(17), pages 1-32, August.
    7. Shuchih Ernest Chang & Erik Chiaway Chang & Yijou Chen, 2022. "Blockchain Meets Sharing Economy: A Case of Smart Contract Enabled Ridesharing Service," Sustainability, MDPI, vol. 14(21), pages 1-23, October.
    8. Andrés Fernández-Miguel & Maria Pia Riccardi & Valerio Veglio & Fernando E. García-Muiña & Alfonso P. Fernández del Hoyo & Davide Settembre-Blundo, 2022. "Disruption in Resource-Intensive Supply Chains: Reshoring and Nearshoring as Strategies to Enable Them to Become More Resilient and Sustainable," Sustainability, MDPI, vol. 14(17), pages 1-13, August.
    9. Altaf Hossain Molla & Hilal Shams & Zambri Harun & Mohd Nizam Ab Rahman & Hawa Hishamuddin, 2022. "An Assessment of Drivers and Barriers to Implementation of Circular Economy in the End-of-Life Vehicle Recycling Sector in India," Sustainability, MDPI, vol. 14(20), pages 1-25, October.
    10. Tuğba Yeğin & Muhammad Ikram, 2022. "Developing a Sustainable Omnichannel Strategic Framework toward Circular Revolution: An Integrated Approach," Sustainability, MDPI, vol. 14(18), pages 1-25, September.
    11. Samuel Chukwudi Agunyai & Lere Amusan, 2023. "Implications of Land Grabbing and Resource Curse for Sustainable Development Goal 2 in Africa: Can Globalization Be Blamed?," Sustainability, MDPI, vol. 15(14), pages 1-18, July.
    12. Truant, Elisa & Giordino, Daniele & Borlatto, Edoardo & Bhatia, Meena, 2024. "Drivers and barriers of smart technologies for circular economy: Leveraging smart circular economy implementation to nurture companies' performance," Technological Forecasting and Social Change, Elsevier, vol. 198(C).

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