Modelling the circular economy: Introducing a supply chain equilibrium approach

The circular economy (CE) has gained prominence in recent years in government and business policies, as well as academic research. Yet, its alleged wholesomeness is increasingly questioned and few quantitative studies include both the outer (e.g. recycling) and inner circles (e.g. reduce or reuse), respectively the ex-ante least and most efficient CE strategies. By developing a supply chain equilibrium model, based on general equilibrium theory, this paper presents a modelling framework where a product-service system is introduced as a circular alternative to conventional products. Through generalised prices that cover inner and outer circle variables, targeted economic and fiscal policy measures affect overall price levels and, by consequence, operational levels of the supply chain. The rationale behind this approach relies on combining material and economic efficiency by integrating material/product life cycles with market interactions. To illustrate its performance, the model examines the rollout of a reusable plastic bottle initiative in Belgium. The results show that if circular products are perceived as substitutes for conventional products, well-targeted policies can reduce material use substantially. Furthermore, coordinating circular policies along the supply chain can improve their outcomes. However, the absence of CE data impedes model development and risks undermining the validity of the results

Near-zero-waste processing of low-grade, complex primary ores and secondary raw materials in Europe: technology development trends

With an increasing number of low-grade primary ores starting to be cog-effectively mined, we are at the verge of mining a myriad of low-grade primary and secondary mineral materials. At the same time, mining practices and mineral waste recycling are both evolving towards sustainable near-zero-waste processing of low-grade resources within a circular economy that requires a shift in business models, policies and improvements in process technologies. This review discusses the evolution towards low-grade primary ore and secondary raw material mining that will allow for sufficient supply of critical raw materials as well as base metals. Seven low-grade ores, including primary (Greek and Polish laterites) and secondary (fayalitic slags, jarosite and goethite sludges, zincrich waste treatment sludge and chromium-rich neutralisation sludge) raw materials are discussed as typical examples for Europe. In order to treat diverse and complex low-grade ores efficiently, the use of a new metallurgical systems toolbox is proposed, which is populated with existing and innovative unit operations: (i) mineral processing, (ii) metal extraction, (iii) metal recovery and (iv) matrix valorisation. Several promising novel techniques are under development for these four unit-operations. From an economical and environmental point of view, such processes must be fitted into new (circular) business models, whereby impacts and costs are divided over the entire value chain. Currently, low-grade secondary raw material processing is only economic and environmentally beneficial when the mineral residues can be valorised and landfill costs are avoided and/or incentives for waste processing can be taken into account

Economic consequences of consumer repair strategies for electrical household devices

status: publishe

Modelling the circular economy: Introducing a supply chain equilibrium approach

The circular economy (CE) has gained prominence in recent years in government and business policies, as well as academic research. Yet, its alleged wholesomeness is increasingly questioned and few quantitative studies include both the outer (e.g. recycling) and inner circles (e.g. reduce or reuse), respectively the ex-ante least and most efficient CE strategies. By developing a supply chain equilibrium model, based on general equilibrium theory, this paper presents a modelling framework where a product-service system is introduced as a circular alternative to conventional products. Through generalised prices that cover inner and outer circle variables, targeted economic and fiscal policy measures affect overall price levels and, by consequence, operational levels of the supply chain. The rationale behind this approach relies on combining material and economic efficiency by integrating material/product life cycles with market interactions. To illustrate its performance, the model examines the rollout of a reusable plastic bottle initiative in Belgium. The results show that if circular products are perceived as substitutes for conventional products, well-targeted policies can reduce material use substantially. Furthermore, coordinating circular policies along the supply chain can improve their outcomes. However, the absence of CE data impedes model development and risks undermining the validity of the results

Using Natural Language Processing to monitor circular activities and employment

In Europe, NACE codes are used for the official classification of sectors, however, the circular economy is not sufficiently captured in this classification. Therefore, this paper improves previous attempts for defining circular activities and jobs by web scraping techniques applied to each company in Belgium. We analyze their first, second, and third official NACE codes and compare these to the NACE codes they should have been allocated to according to the web scraping data. Subsequently, we calculate circularity scores for every sector to construct an indicator for the number of circular companies and jobs. The results show that the number of circular companies is lower than the baseline from official statistics when we only consider the companies' first and main NACE code. The estimates are higher than the baseline when we also take the second and third NACE codes into account and the estimated number of circular jobs is far higher than the baseline. This research upgrades previous classifications of circular sectors and demonstrates how web scraping and novel data might improve our understanding and capacity to build data. Based on the results in this paper, we recommend a uniform data collection such as reporting standards, and an inclusion of all circular strategies in sectoral classifications

Towards sustainable growth paths for work integration social enterprises in the circular economy

An important presumed social impact of the circular economy (CE) is job-creation for vulnerable groups. This creates opportunities for Work Integration Social Enterprises (WISEs), which are established to organize economic activities for workers with a distance to the labour market. In this paper, we identify challenges, opportunities, and sustainability aspects for WISEs in the CE. We apply Computable General Equilibrium (CGE) model results and conduct 20 expert interviews, providing an empirical contribution to recent research agendas on the social impact of the CE and the role of WISEs in Circular Societies. Our results show that WISEs should not take job-creating opportunities of the CE for granted, most specifically in the business-to-business (B2B) markets they are active in. While WISEs conceive competitive advantages to perform core CE jobs, they need to develop organisational capabilities to convert this potential into high added value activities within regionally embedded circular value chains. When identifying conditions for sustainable growth paths, we reveal a strong interconnectedness between social, environmental, and economic dimensions. We recommend management professionals and policy makers to measure, validate, and communicate social and circularity outcomes and invest in partnerships along value chains and across policy domains.</p

Using natural language processing to monitor circular activities and employment

Abstract: In Europe, NACE codes are used for the official classification of sectors, however, the circular economy is not sufficiently captured in this classification. Therefore, this paper improves previous attempts for defining circular activities and jobs by web scraping techniques applied to each company in Belgium. We analyze their first, second, and third official NACE codes and compare these to the NACE codes they should have been allocated to according to the web scraping data. Subsequently, we calculate circularity scores for every sector to construct an indicator for the number of circular companies and jobs. The results show that the number of circular companies is lower than the baseline from official statistics when we only consider the companies' first and main NACE code. The estimates are higher than the baseline when we also take the second and third NACE codes into account and the estimated number of circular jobs is far higher than the baseline. This research upgrades previous classifications of circular sectors and demonstrates how web scraping and novel data might improve our understanding and capacity to build data. Based on the results in this paper, we recommend a uniform data collection such as reporting standards, and an inclusion of all circular strategies in sectoral classifications