Highlights

Some highlights related to a transition to a circular economy

The idea of a circular economy has roots in both economics and industrial ecology fields. This page aims to demonstrate the literature base surrounding the circular economy and its applications. 

This is a general timeline of other notable highlights related to the circular economy, ending with our study and its significance to the literature. Bracketed numbers indicate each paper's place in our references.

Circular Economy Origins

  1. 1966

    Boulding [25]: Proposed that there are differences between open and closed systems concerning materials, energy, and information. The main difference between an open (linear "Cowboy Economy") and a closed (Spaceman Economy) is the former posits that the Earth has unlimited resources and deposits of raw materials. In the latter, these resources and reservoirs are limited. In this case, Boulding argued there is a need to adopt methods that reinvest materials from one process and use them as inputs in others.

  2. 1989

    Frosh and Gallopoulos [20]: Made a key contribution to the field of industrial ecology, which is concerned with the flow of material. They argue that linear industrial activity should be transformed into an industrial ecosystem where material and energy consumption is optimized and waste is minimized through effluents of one process being utilized as raw materials for another. Advocated for closed cycles and a design for recycling.

  3. 1989

    Pearce and Turner [26] coined the term Circular Economy. They addressed the relationship between CE and four functions of the environment, which they argued are: 1. provision of amenities, 2. Resource base for economic opportunities, 3. sink for economic activities, and 4. Fundamental life support.1

  4. 2007

    Anderson [27] : Continued the work of Pearce and Turner to highlight the role of environmental economists in addressing environmental externalities caused by economic activity. The paper addresses how unpriced and underpriced services and disservices can be accounted for by a CE. For example, pollution is difficult to track and quantify in the price of consumer goods, which can lead to overconsumption and ecological harm.2

  5. 2017

    Zink and Geyer [21]: Noted that CE research has focused on engineering and technology while neglecting economic implications and incentives.

  6. 2022

    Fullerton et al. [33]: Found that CE started among architects and engineers and has received little interest among economists.

  7. 2023

    This paper was published, contributing to the emerging literature by arguing the need for an increased emphasis on the economics of CE. 

1.  An explanation of the proposed four functions of the environment:

  • Resource base: Providing raw materials and resources for economic activity.
  • Sink: Absorbing waste and emissions generated by economic activity.
  • Amenity services: Offering recreational, aesthetic, and cultural benefits.
  • Life-support system: Maintaining critical ecological processes that sustain life on Earth.

2. LCA, or Life Cycle Assessment is a way to track environmental impacts throughout the creation of a product. This allows a full life cycle view from raw material to finished product, allowing for the identification of hotspots that can be used to create more sustainable products and processes.

Consumer valuations of environmental goods allow for finding out what value the average consumer would place on said goods. Using either contingent valuation, a survey-based approach, or revealed preference, a data driven approach utilizing market metrics, Anderson argued un and underpriced services and disservices can be internalized in a CE model.