1887

Business Models for the Circular Economy

Opportunities and Challenges for Policy

image of Business Models for the Circular Economy

Natural resources, and the materials derived from them, represent the physical basis for the economic system. Recent decades have witnessed an unprecedented growth in demand for these resources, which has triggered interest from policy makers in transitioning to a more resource efficient and circular economy. This report presents a typology of five circular business models that could support the transition to a more resource efficient and circular economy: circular supply, resource recovery, product life extension, sharing, and product service system models. It reviews the current market penetration and assesses the potential scalability of each business model. Environmental potential is also discussed, as well as risks and unintended consequences that could result from a more widespread adoption of these business models. The report provides a broad set of policy approaches that could help alleviate some of the barriers that currently hinder the widespread adoption of circular business models.

English

.

The environmental impacts of circular business models

This chapter focuses on the environmental potential of circular business models. Drawing primarily on insights from the lifecycle assessment (LCA) literature, it assesses and compares the environmental footprint of goods and services produced via circular modes of production to those produced via more traditional means. Thus, recycled materials are compared to those made from virgin natural resources, remanufactured products are compared to new products, and the sharing or leasing of assets is compared to conventional ownership. While the environmental potential of circular business models is found to be broadly positive, the analysis also identifies several risks and unintended consequences that could result from their more widespread adoption.

English

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error