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Unpacking Policy Determinants for Circular Business Models: An Updated Comprehensive Review and an Actionable Analytical Framework

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  • Cristina Galvão Ascenço

    (CENSE—Centre for Environmental and Sustainability Research, CHANGE—Institute for Global Change and Sustainability, Department of Environmental Sciences & Engineering, NOVA School of Science & Technology, NOVA University Lisbon, 2829-516 Caparica, Portugal
    Research, Development & Innovation Division, Instituto de Soldadura e Qualidade, Taguspark, 2740-120 Oeiras, Portugal)

  • Rui Ferreira Santos

    (CENSE—Centre for Environmental and Sustainability Research, CHANGE—Institute for Global Change and Sustainability, Department of Environmental Sciences & Engineering, NOVA School of Science & Technology, NOVA University Lisbon, 2829-516 Caparica, Portugal)

Abstract

The transition from linear to circular systems remains slow and fragmented, despite the increasing recognition of circular economy (CE) as a strategic pathway to sustainability. This review identifies and categorizes the main policy levers supporting the adoption of Circular Business Models (CBM) in an analytical framework comprising eight determinants: policy agenda, governance, regulation, standardization, economic incentives, information, cooperation, and digitalization. Based on a semi-systematic review of 95 scientific and grey literature sources, the study reveals persistent gaps in policy coherence, governance coordination, and support for high-circularity strategies. The proposed framework offers a practical tool for policymakers to assess existing policy landscapes, identify gaps, and design integrated policy mixes tailored to specific contexts. It also provides a foundation for future empirical research and benchmarking across jurisdictions. By highlighting the interplay between top-down and bottom-up initiatives, the study underscores the need for inclusive, stable, and digitally enabled policy environments to accelerate the circular transition.

Suggested Citation

  • Cristina Galvão Ascenço & Rui Ferreira Santos, 2025. "Unpacking Policy Determinants for Circular Business Models: An Updated Comprehensive Review and an Actionable Analytical Framework," Sustainability, MDPI, vol. 17(20), pages 1-26, October.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:20:p:9090-:d:1771013
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