Integrating Circular Economy Principles Dissertation Sample

Introduction Of Integrating Circular Economy Principles into Traditional Economics

Ecological economy, formerly referred to as ecological economics, has become a multidisciplinary discipline which incorporates ecological values as well as sustainability factors into economic methods and theories (Costanza, 2010). It seeks to strike a balance between economic development, environmental conservation, and social fairness by focusing on the long-term utilization of resources from nature, the safeguarding of ecological systems, and the wellbeing of both human as well as ecological communities. The concept with a circular economy has grown to represent a ray of optimism in the attempt for more responsible, fair, and sustainable economic practices. In a world dealing with resource scarcity, degradation of the environment, and disparities in society, the circular economy provides an intriguing alternative in which resources are used effectively, waste is reduced to a minimum, and revenue generation is separated from harm to the environment. This essay initiates a critical investigation of the viability of incorporating circular economy concepts within the conventional school of economic thought. It is a journey into the complexity, difficulties, and possibilities that develop when aiming to reshape the economy to align with sustainability. The enormous relevance of this subject is the justification for this endeavour.

In accomplishing this task, the authors hope to accomplish a number of important goals. First, the author wants to have a thorough knowledge of the concepts of the circular economy and how they might be used to alter existing economic paradigms. The second goal of the project is to examine critically the challenges and possibilities related to integrating circular economy practises. Understanding the difficulties and obstacles that might affect the mainstreaming of circularity requires this examination. The author also aims to investigate how the Sustainable Development Goals (SDGs) and circular economy ideas relate to one another.

Literature Review

Concept of circular economy implemented into the mainstream approach to economics

In accordance with the views of Costanza et. al. (2020) the theory of a circular economy has become more popular recently as a potential response to the issues with the environment and resources that the linear economy model presents. Resources are used wisely, products are made to last and be recyclable, and waste is limited to a minimum in a circular economy. The concept of circulating economic development from the utilisation of finite resources is the foundation of a circular economy concept. By using a system where items and materials are reused, remanufactured, or repurposed to maximize their value and reduce waste, it tries to replace the conventional "take, make, dispose" approach. This idea gained popularity thanks to Ellen MacArthur's important 2013 paper, "Towards a Circular Economy," which has sparked attention from businesses and governments throughout the world.

According to the views of Rosa-Schleich, et. al. (2019) an important database of research has been done on the circular economy idea, as there have also been more and more projects. The administration of resources, environmentally friendly design and the function of policy frameworks have all been topics of academic enquiry. Businesses have also begun to incorporate circular ideas into their daily operations, with organizations like Phillips and Microsoft setting the bar for product recycling and take-back initiatives. However, Spash (2020) argued that there are still difficulties with completely integrating the economy of circularity into the dominant economics paradigm. The established character of the linear economy, with its deeply ingrained organizations and incentives that priorities continual consuming and disposal, is one significant barrier. Manufacturing, consumption, and purchasing habits must all be significantly altered to make the switch to a circular economy.

Temesgen, Storsletten and Jakobsen, (2021) examined the present state of affairs in the discipline of circular economics differs by area and sector. The European Green Deal as well as the circular economics Action Plan, for example, in Europe, has established challenging goals for resource conservation and waste reduction. A number of countries have passed laws to promote circular economy principles, like extended producer responsibility initiatives. The fashion industry, meanwhile, is moving in the direction of the circularity through initiatives like buyback marketplaces and environmentally friendly material procurement. On the critical note, Schröder, Lemille and Desmond (2020) said that the concept of a circular economy is criticized for possible rebound effects, in which improved productivity might result in more consumption.

Benefits of implementing the concept's principles in the mainstream approach to economics

Ballardini, Kaisto and Similä (2021) stated that as a response to the resource and ecological issues caused by the conventional economic model, the shift to a more circular economy has drawn a lot of attention recently. The basic concepts for a circular economy place a strong emphasis on environmentally friendly behaviour, waste minimization and resource efficiency. The idea of "completing the loop," which entails designing goods and processes to enable reuse & recycling, refurbishing and reuse, is one important tenet. The idea of shifting from possession to accessibility, which encourages sharing and renting out products instead of encouraging individual ownership, is another main aspect. Furthermore, circularity promotes the utilization all sources of clean energy and the omission of hazardous materials from manufacturing procedures.

Desing, et. al. (2020) mentioned in their study that employing these circular economy concepts could end up in large resource savings, which is one of the main advantages. The circular economy lessens the demand for gathering and preparing new raw materials by developing products to last a long time while promoting their recycling and reuse. This may result into less negative effects on the ecosystem, less energy use and lower emissions of glasshouse gases, all of which support objectives for sustainability. The circular economy may also promote economic expansion and creativity. Circularity-aware design of goods necessitates fresh perspectives and inventive solutions that spur innovation in product architecture, raw materials and production techniques. This invention has the potential to generate new markets and businesses, promoting the economy while also addressing environmental problems.

Zhu, et. al. (2022) assessed that circular business models, including product-as-a-service and collaboration systems, may create economic opportunities through providing less costly availability of products and services. For example, Sharing a ride and short-term rental agreements eliminate the requirement for individual automobile ownership, which might cut consumer cost of transportation and lessen the environmental effect of excessive auto production. However, Kyriakopoulos (2021) argued that circular actions may generate jobs in sectors associated with reuse and recycling, refurbishment and repair, possibly compensating reductions in employment in conventional linear sectors. The workforce's shift to sectors with a circular economy may have beneficial economic effects.

Upadhyay, et. al. (2021) examined that despite these possible benefits, there are important factors to take into account when incorporating circular economy ideas into conventional economics. The initial outlay necessary to go from a straight line to a circular structure constitutes a significant obstacle. Redesigning goods, creating reversal supply chains and new business models might all result in higher expenses for companies. Small and medium-sized businesses may find these expenditures to be prohibitive and authorities may need to offer incentives and help for this transformation. Improvements in consumer behaviour and culture are also required for enabling circularity. A key shift in society may be encouraging communication, repair, and reuse above ownership, which calls for strong interaction as well as instruction.

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Critical discussions on challenges of implementing the concept's principles in the mainstream approach to economics

Fioramonti, et. al. (2022) mentioned in their study that the shift to a circular economy, while announcing in its wide range of benefits, encounters many obstacles when striving to incorporate its concepts through the traditional approach to economics. The opposition to change within existing economic systems is a basic problem. Longstanding systems and vested interests in the linear economic system give priority to consumption and disposal. A significant rethinking of conventional economic practices is necessary to move to a more circular economy, although businesses and policymakers may be reluctant to do so. On the critical note, Schröder, et. al. (2020) said that the transition to a circular economy frequently needs important upfront investments. Businesses must make investments in new technology, build up reverse distribution networks and develop goods to be more durable as well as recyclable. These expenses can be prohibitive, particularly for companies that are small or medium-sized and may call for government assistance or incentives.

Meraj, et. al. (2021) defined that contemporary supply chains are linear, multi-national and challenging. These conventional procedures can be upended by the use of circular ideas, such as closed-loop reuse or product take-back initiatives. Supply chain circularity alignment may need reorganization and provide logistical challenges. Concepts of the circular economy frequently rely on adjustments in consumer behaviour. Instead of continuing to pursue continual ownership and consumption, consumers must be prepared to accept sharing, renting, and reconditioned goods. On the contradictory note, Colucci and Vecchi (2021) defined that consumer behaviour change may be a laborious and challenging process. The widespread application of circular economy concepts may be hampered by the absence of adequate regulatory frameworks. The growth of a circular economy might be hampered by discrepancies in waste management laws, standards for goods and recycle infrastructure.

Tzortzopoulos, et. al. (2020) identified in their study that investors and companies alike frequently put short-term gains ahead of the long-term viability in the economy. Longer product lifecycles are an increasingly prevalent aspect of circular practises, which may be at odds with conventionally profit-driven corporate strategies. It is a big task to get over this short-term preoccupation. The advantages of the circular economy for the environment and society are not taken into consideration by conventional economic measurements like GDP. To be accepted by the general public, circularity must be measured using novel metrics and measuring techniques.

Mont, et. al. (2020) described the mainstreaming of circular economy practices may be hampered in particular areas and sectors by information access restrictions and cutting-edge technological advancements. Companies might not have the information or resources needed to optimize resource usage and recycling procedures. On the contradictory note, Johansson and Henriksson (2020) defined that a change in societal attitudes and norms is also necessary to achieve a circular economy. It includes changing from a culture that emphasizes short-term consumption to one that emphasizes durability, reparability and sustainability. This cultural change is a challenging, protracted issue. A worldwide effort is required since resource usage and waste creation are challenges that affect the entire world. Due to divergent agendas and interests, achieving collaboration across organisations, sectors, and stakeholders can be challenging.

Examples include WHAT and WHY did they do it, WHAT is the current state of the programme

Owusu-Manu, et. al. (2021) defined that the theory of a circular economy is currently working its way through mainstream economic discourse, with different countries and organizations leading efforts to carry out circular principles. For instance, Netherlands has served as a leader in implementing the ideas of the circular economy. The "Netherlands Circular Hotspot" initiative, which seeks to highlight Dutch circular ideas and promote global cooperation, is one of its noteworthy projects. The initiative was put in place to increase economic growth while minimizing resource use and environmental effect. The initiative is now in excellent condition, with many Dutch businesses adopting circular business models and worldwide interest regarding their circular approaches.

Tzortzopoulos, et. al. (2020) stated that the Dutch multinational corporation Philips is among the leaders in accepting the circular economy's principles. As opposed to selling electrical goods, they now provide lighting as a service, keeping the responsibility and ownership for the devices. This move was made by Philips to encourage resource conservation and lessen electronic waste. Philips has effectively extended the lifespan of its products and expanded its service offerings, thus the initiative is doing well. Another example involve, the circular economy has been supported by the UK-based Ellen MacArthur Foundation. To hasten the shift to circularity, the "Circular Economy 100" initiative brings together top organizations from diverse industries. The initiative was started by the foundation to encourage collaboration and information exchange. The initiative is still flourishing as of this writing, and more participants are becoming dedicated to using circular approaches.

Fioramonti, et. al. (2022) ascertained the fact that the circular economy's principles are essential for resolving resource shortages and degradation of the environment, according to China. In numerous regions, the country has put circular economy pilot programmes into place, concentrating on sectors like computers and textiles. China is motivated by a desire to minimise pollution and its excessive reliance on resource imports. The present status of these programmes varies by location, with some seeing notable growth and others having trouble growing. A global flooring firm called Interface started a project dubbed "Mission Zero" to get rid of all of its adverse environmental impacts by the year 2020. By creating recyclable tiles for carpets and putting take-back programmes in place, they adopted circular practises. Reduced waste and corporate alignment with environmental goals were Interface's driving forces. The project has advanced significantly, and the business has accomplished several of its Project Zero goals.

Opportunities for further implementation of the concept's principles and how these help to achieve the Sustainable Development Goals

Zhu, et. al. (2022) stated that the concept for a circular economy actually is tremendous promise in terms of possibilities over further incorporation through mainstream economics, with the potential for close cooperation with the goals of sustainable development (SDGs). The circular economy's driving concept of resource efficiency gives an important opportunity in this area. The circular economy may drastically reduce the exploitation of resources from nature, reduce consumption of energy, and alleviate pollution by maximizing the value of resources and goods while minimizing waste. Such resource-saving procedures clearly align with SDG 12, which seeks to promote ethical patterns of consumption and production. This promotes the objective of environmentally friendly resource management.

Kyriakopoulos (2021) mentioned in their study that The circular economy additionally offers a chance to solve problems with inequality and economic inequities. Jobs are frequently generated by circular efforts, especially in industries like recycling, renovation, and refurbishment. These job opportunities may materialize locally, assisting marginalized groups and advancing SDG 8's goals of encouraging good employment and sustained economic growth. As a result, the circular economy has a chance to promote inclusive and fair economic growth in addition to providing environmental advantages. The circular economy's help with reducing glasshouse gases, which ties together with SDG 13, is another appealing feature. Circular business practises may significantly lower glasshouse gas emissions by extending the life of goods, reusing materials, and supporting energy-efficient procedures. Thus, the effects of mineral extraction and disposal of waste on the environment are reduced, which helps the battle towards climate change. The circular economy's contribution to climate change mitigation strengthens its place as a key element of a long-term economic strategy.

However, Schröder, et. al. (2020) argued that as SDG 11 emphasises, the circular economy has a huge influence on the growth of communities and cities that are sustainable. Circularity helps to lessen the environmental impact of metropolitan areas by promoting social platforms, redesigning items for durability, and cutting back on resource-intensive practices. Considering the rising urbanization tendencies throughout the world and the requirement that cities embrace environmentally friendly and environmentally friendly practices, this is especially pertinent.

Mont, et. al. (2020) described another important variable is the potential of a circular economy to improve the availability of education, as stated in SDG 4. Innovation in the design of goods, raw materials, and production methods is encouraged by circular concepts. This invention not only encourages economic expansion but also opens doors for learning and skill advancement. Circular practices can promote a culture of continual learning and adaptation as they expand, which will aid in the improvement of education and continued education.

Conclusion And Recommendation

Conclusion

In conclusion, the investigation into strategies to incorporate the ideas of the circular economy into traditional economics indicates a potential strategy for solving current world challenges. This identifies potential in resource conservation, job growth, and climate mitigation while also highlighting problems including change resistance and complicated supply networks. The circular economy has significant potential despite its difficulties. The application of circular principles can improve the utilization of resources, lessen inequality by fostering local employment opportunities, and reduce global warming. This can be done through reduced emissions, support clean and inexpensive energy, reduce food waste and safeguard ecosystems. The SDGs and the ideas of the circular economy strongly coincide.

Recommendation

Connected problems and options: The possibilities and problems related to the circular economics are intricately linked. For instance, addressing changes in consumer behaviour can aid in lowering short-termism, which in turn promotes steady economic expansion. Future managers and leaders should handle these problems in their entirety, taking into account how different aspects interact.

Innovation leadership: Because innovation is at the core to the circular economy, future executives and managers should give it top priority in their businesses. This requires creating new business models, promoting a culture of sustainability, and developing systems as well as goods with the circularity in mind.

Collaborative approaches: To realize the circular economy's maximum potential, governments, corporations, and the general public must work together. As they try to apply circular concepts, future managers and leaders should promote collaborations and shared responsibilities.

Sustainability education: The principles of the circular economy encourage the development of skills throughout life. Future managers and leaders should place a high priority on education and training so that they and their teams are prepared to handle the complexity of circular business practises.

Long-Term Vision: Moving towards a circular economy involves a procedure that takes time. It calls for sustainability commitment and a long-term vision. Future managers and leaders should be ready to make the necessary investments, understanding that while the rewards may not be readily apparent, they are essential for a future that is sustainable.

Implications for Future Leaders and Managers

As future managers and leaders, I have an essential part to play in incorporating sustainability into my company's techniques and operations. Adopting circularity may boost resiliency, provide competitive benefits, and have a beneficial impact on society. It is crucial to promote a culture of creativity. I need to aggressively encourage creative problem-solving, consider fresh company ideas, and use circular technology. This will encourage flexibility and guarantee that my company maintains its competitive edge in a setting that shifts quickly. Cooperation is essential for successful leadership in the new circular economy age. For lasting change, I must skilfully form alliances with stakeholders from many industries. In order to overcome shared issues, it will be crucial to promote collaboration and conversation. Setting learning and developing abilities as a top priority is the first step. To keep up with the development of circular technologies and practices, I need to invest in chances for ongoing learning for my team and me. I have to admit that the route towards the circular economy calls for endurance and patience. Achieving enduring change requires a commitment to sustainable development objectives and effective stakeholder communication of this vision.

References

Books and journals

• Ballardini, R.M., Kaisto, J. and Similä, J., 2021. Developing novel property concepts in private law to foster the circular economy. Journal of Cleaner Production, 279, p.123747.
• Colucci, M. and Vecchi, A., 2021. Close the loop: Evidence on the implementation of the circular economy from the Italian fashion industry. Business Strategy and the Environment, 30(2), pp.856-873.
• Costanza, R., Erickson, J.D., Farley, J. and Kubiszewski, I. eds., 2020. Sustainable wellbeing futures: A research and action agenda for ecological economics. Edward Elgar Publishing.
• Desing, H., Brunner, D., Takacs, F., Nahrath, S., Frankenberger, K. and Hischier, R., 2020. A circular economy within the planetary boundaries: Towards a resource-based, systemic approach. Resources, Conservation and Recycling, 155, p.104673.
• Fioramonti, L., Coscieme, L., Costanza, R., Kubiszewski, I., Trebeck, K., Wallis, S., Roberts, D., Mortensen, L.F., Pickett, K.E., Wilkinson, R. and Ragnarsdottír, K.V., 2022. Wellbeing economy: An effective paradigm to mainstream post-growth policies?. Ecological Economics, 192, p.107261.
• Johansson, N. and Henriksson, M., 2020. Circular economy running in circles? A discourse analysis of shifts in ideas of circularity in Swedish environmental policy. Sustainable Production and Consumption, 23, pp.148-156.
• Kyriakopoulos, G.L., 2021. Environmental legislation in european and international contexts: legal practices and social planning toward the circular economy. Laws, 10(1), p.3.
• Meraj, G., Singh, S.K., Kanga, S. and Islam, M.N., 2021. Modeling on comparison of ecosystem services concepts, tools, methods and their ecological-economic implications: A review. Modeling Earth Systems and Environment, pp.1-20.
• Mont, O., Palgan, Y.V., Bradley, K. and Zvolska, L., 2020. A decade of the sharing economy: Concepts, users, business and governance perspectives. Journal of cleaner production, 269, p.122215.
• Owusu-Manu, D.G., Adjei, T.K., Sackey, D.M., Edwards, D.J. and Hosseini, R.M., 2021. Mainstreaming sustainable development goals in Ghana's energy sector within the framework of public–private partnerships: challenges, opportunities and strategies. Journal of Engineering, Design and Technology, 19(3), pp.605-624.
• Rosa-Schleich, J., Loos, J., Mußhoff, O. and Tscharntke, T., 2019. Ecological-economic trade-offs of diversified farming systems–a review. Ecological Economics, 160, pp.251-263.
• Schröder, P., Lemille, A. and Desmond, P., 2020. Making the circular economy work for human development. Resources, Conservation and Recycling, 156, p.104686.
• Schröder, P., Lemille, A. and Desmond, P., 2020. Making the circular economy work for human development. Resources, Conservation and Recycling, 156, p.104686.
• Spash, C.L., 2020. A tale of three paradigms: Realising the revolutionary potential of ecological economics. Ecological Economics, 169, p.106518.
• Temesgen, A., Storsletten, V. and Jakobsen, O., 2021. Circular economy–reducing symptoms or radical change?. Philosophy of Management, 20(1), pp.37-56.
• Tzortzopoulos, P., Kagioglou, M. and Koskela, L. eds., 2020. Lean construction: core concepts and new frontiers. Routledge.
• Upadhyay, A., Laing, T., Kumar, V. and Dora, M., 2021. Exploring barriers and drivers to the implementation of circular economy practices in the mining industry. Resources Policy, 72, p.102037.
• Zhu, B., Nguyen, M., Siri, N.S. and Malik, A., 2022. Towards a transformative model of circular economy for SMEs. Journal of Business Research, 144, pp.545-555.

Online

• Costanza, R., 2010. What is ecological economics?. Online. Available through. :< https://insights.som.yale.edu/insights/what-is-ecological-economics>