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A Review of the Circular Economy and its Implementation

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  • Heshmati, Almas

    (Jönköping University)

Abstract

Circular economy (CE) is a sustainable development strategy that is being proposed to tackle urgent problems of environmental degradation and resource scarcity. CE's 3R principles are to reduce, reuse and recycle materials. The principles account for a circular system where all materials are recycled, all energy is derived from renewables; activities support and rebuild the ecosystem and support human health and a healthy society and resources are used to generate value. This study is a review of the rapidly growing literature on CE covering its concept and current practices and assessing its implementation. The review also serves as an assessment of the design, implementation and effectiveness of CE related policies. It first presents the concept of CE and compares it with the current linear economy of taking materials, producing goods and disposing waste. It explains why it is imperative to move away from a linear economy towards regenerative sustainable industrial development with a closed loop. The paper then introduces current practices that have been introduced and discusses standards for the assessment of CE's development and performance. The main focus here is on providing a summary of the data analysis of key CE indicators to give a picture of CE practices. Third, based on an analysis of literature, the paper identifies the underlying problems and challenges to CE in an entrepreneurial perspective. Finally, the review provides a conclusion on CE's current development and gives policy suggestions for its future development as part of an entrepreneurial and innovative national level development strategy.

Suggested Citation

  • Heshmati, Almas, 2015. "A Review of the Circular Economy and its Implementation," IZA Discussion Papers 9611, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9611
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    Cited by:

    1. Kruse, Mirko & Sünner, Isabel, 2021. "Kreislaufwirtschaft in Hamburg - Akteure, Trends und Potenziale," HWWI Policy Papers 132, Hamburg Institute of International Economics (HWWI).
    2. Ghinoi, Stefano & Silvestri, Francesco & Steiner, Bodo, 2020. "The role of local stakeholders in disseminating knowledge for supporting the circular economy: a network analysis approach," Ecological Economics, Elsevier, vol. 169(C).
    3. Mohajan, Haradhan, 2021. "Circular Economy in China: Towards the Progress," MPRA Paper 109281, University Library of Munich, Germany, revised 03 Aug 2021.
    4. Ödül Bozkurt & Mirela Xheneti & Vicky, 2022. "On the Front Line of the Circular Economy: The Entrepreneurial, Identity and Institutional Work of a Female Entrepreneur towards the Circular Transition," Work, Employment & Society, British Sociological Association, vol. 36(1), pages 156-166, February.
    5. Jacopo Zotti & Andrea Bigano, 2019. "Write circular economy, read economy’s circularity. How to avoid going in circles," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(2), pages 629-652, July.
    6. Haradhan Kumar MOHAJAN, 2020. "Circular Economy can Provide a Sustainable Global Society," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 9(3), pages 38-62, September.
    7. Soliwoda, Michał & Wieliczko, Barbara & Kulawik, Jacek, 2020. "Circular Economy vs. Sustainability of Agribusiness," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 311214, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    8. repec:aud:audfin:v:20:y:2018:i:48:p:478 is not listed on IDEAS
    9. Elvira Haezendonck & Karel Van den Berghe, 2020. "Patterns of Circular Transition: What Is the Circular Economy Maturity of Belgian Ports?," Sustainability, MDPI, vol. 12(21), pages 1-15, November.
    10. Kiyoka Akimoto & Koichi Futagami, 2018. "Transition from a Linear Economy toward a Circular Economy in the Ramsey Model," Discussion Papers in Economics and Business 18-09, Osaka University, Graduate School of Economics.
    11. Fonseca Luis Miguel & Domingues José Pedro, 2018. "Adoption of Circular Economy concepts and practices by Portuguese Citizens and Companies," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 12(1), pages 374-385, May.
    12. Oana Dobre-Baron & Alina Nițescu & Dorina Niță & Cătălin Mitran, 2022. "Romania’s Perspectives on the Transition to the Circular Economy in an EU Context," Sustainability, MDPI, vol. 14(9), pages 1-26, April.
    13. Dream D. Cazzaniga & Giulia Detomati, 2017. "Circular economy: Implementing a small-scale project in a rural area," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2017(1-2), pages 191-217.
    14. Livio Ferrante & Anna Rita Germani, 2020. "Does Circular Economy Play a Key Role in Economic Growth?," Economics Bulletin, AccessEcon, vol. 40(3), pages 1855-1862.
    15. Sugiyono & Bart J. Dewancker, 2020. "Study on the Domestic Water Utilization in Kota Metro, Lampung Province, Indonesia: Exploring Opportunities to Apply the Circular Economic Concepts in the Domestic Water Sector," Sustainability, MDPI, vol. 12(21), pages 1-23, October.
    16. Octavian-Dragomir Jora & Alexandru Patru?i & Mihaela Iacob, 2018. "The Vicious Circles of Bureaucratic Circular Economy: The Case of Packaging Waste Euro-Targets for Romania," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(48), pages 478-478.
    17. Juli Nurdiana & Maria Laura Franco-Garcia & Michiel Adriaan Heldeweg, 2021. "How Shall We Start? The Importance of General Indices for Circular Cities in Indonesia," Sustainability, MDPI, vol. 13(20), pages 1-22, October.
    18. Inês de Abreu Ferreira & Manuel de Castro Fraga & Radu Godina & Marta Souto Barreiros & Helena Carvalho, 2019. "A Proposed Index of the Implementation and Maturity of Circular Economy Practices—The Case of the Pulp and Paper Industries of Portugal and Spain," Sustainability, MDPI, vol. 11(6), pages 1-18, March.
    19. Armand Kasztelan, 2020. "How Circular Are the European Economies? A Taxonomic Analysis Based on the INEC (Index of National Economies’ Circularity)," Sustainability, MDPI, vol. 12(18), pages 1-11, September.
    20. MOHAJAN, Haradhan Kumar, 2020. "Circular Economy: An Inevitability Issue For The Sustainable Human Civilization," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 20(3), pages 23-54.
    21. Maria ANDRONIE & Laura MARIN, 2017. "Analogies in Environmental and Economic Systems: Growth Curve and Models," International Conference on Economic Sciences and Business Administration, Spiru Haret University, vol. 4(1), pages 20-26, October.
    22. Ahmed A. Khalifa & Abdul-Jalil Ibrahim & Abdulkarem I. Amhamed & Muftah H. El-Naas, 2022. "Accelerating the Transition to a Circular Economy for Net-Zero Emissions by 2050: A Systematic Review," Sustainability, MDPI, vol. 14(18), pages 1-20, September.
    23. Monika Klein & Monika Spychalska-Wojtkiewicz, 2020. "Experience Economy in the Context of Sustainable Development," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 9(1), pages 109-120.

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    More about this item

    Keywords

    circular economy; environmental policy; national development strategy; sustainable development strategy; entrepreneurial strategy;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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