| By: |
Heshmati, Almas (Jönköping University, Sogang 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. |
| Keywords: |
circular economy, environmental policy, national development strategy, sustainable development strategy, entrepreneurial strategy |
| JEL: |
E01 F18 H23 O44 Q50 Q53 Q55 Q58 R11 |
| Date: |
2015–12 |
| URL: |
http://d.repec.org/n?u=RePEc:iza:izadps:dp9611&r=pke |