- CIRCULAR ECONOMY: CONCEPTS AND BARRIERS TO TRANSIT. - Abstract: Circular economy is considered as a way toward sustainable economic model and save our planet. - For few decades, several key concepts have been contributed to develop circular economy such as Industrial ecology, Cradle–to–Cradle and Blue economy. - However, lack of reliable data, high up- front costs and complex multinational supply chains, power of consumer and regulation and legislation are four of these main barriers challenging companies to move to circular economy.. - Circular economy has gained much attention from scholars around the world due to human-caused environmental changes. - The East Asia and Pacific region is generating most of the world’s waste, at 23%. - Su et al. - Circular economy is considered as a way toward sustainable economic model and save our planet.. - For few decades, several key concepts have been contributed to develop circular economy such as Industrial ecology (Frosch &. - Braungart, 2002) and Blue economy (Pauli, 2010). - However, “should our company be toward circular economy?” and. - They seem to hesitate switch from traditional open-ended economy model to new circular economy model due to the fact that implementation of circular economy to business has been still limited. - There are some common reasons to explain why organisation hesitates to switch toward circular economy model which are high costs, customers’ loyalty, political barriers and so on. - Desso – an eighty-year-old carpet company, Philips – a famous Dutch multinational technology company and Michelin – a tire and mobility producer are three organisations successfully managing toward circular economy.. - LITERATURE REVIEW ON CIRCULAR ECONOMY 2.1. - Origins of circular economy concept. - The concept of circular economy was first introduced by Boulding (1966), which stated that the earth is limited reservoirs either for extraction or for pollution so human beings must change to cyclical ecological system. - In consistence with Boulding’s argument, Stahel and Reday-Mulvey (1976) and Pearce and Turner (1990) agree that businesses must transit from dead-ended economy to circular economy in order to guarantee sustainable livings on earth. - Circular economy is developed based on the increase awareness about environment and transition to renewable sources to save our planet. - According to Ellen Macarthur Foundation, three key principles of circular economy are designing out waste and pollution, keeping products and materials in use, regenerating natural system. - “A circular economy is one that is restorative and regenerative by design and which aims to keep products, components and materials at their highest utility and value at all times, distinguishing between technical and biological cycles.” (Ellen MacArthur Foundation, 2016).. - Hence, circular economy interpreted as a new business model for sustainable developing economy which put emphasis on balance industrial economics, ecology and society.. - Since 1970s, several concepts have been introduced and developed to contribute to circular economy schools of thought, each of them approaches circular economy by different ways and has their own characteristics. - Circular economy school of thoughts and debates. - Cradle-to-Cradle. - Cradle-to-Cradle was developed by Braungrat and McDonough (2002). - One of the most striking features about Cradle-to-Cradle is “nutrient metabolism” which is not covered by circular economy.. - The concept design perceives the “biological metabolism” and tries to translate into “technical metabolism” flow of industrial materials (McDonough et al., 2003). - Moreover, Cradle-to-Cradle supports for using renewable materials and energy. - Cradle-to-Cradle can be implemented not only in manufacturing and design processes but also infrastructure and technology (Geisendorf and Pietrull, 2017). - To summarise, Cradle-to-Cradle is often used as synonym of CE (Esposito et al., 2017) and both have been developing long side each other to manage waste and provide guidelines and tools for industrial ecology systems.. - In 1994, architect and industrial analyst Stahel introduced his works about “functional service economy”, which now is referred as Performance economy. - One of the most distinguish features of Performance Economy is that put emphasis on selling services rather than products, thereby improving product service sales and performance over time and minimising energy consumption and resource input (Product life, 2018). - Blue economy. - Blue Economy is introduced by a Belgian businessman, Gunter Pauli. - The “blue” in “Blue Economy” refers as the colour of sky, ocean and the Earth seen from the universe (Pauli, 2011). - Based on 21 core principles, the Blue Economy focuses on ecology systems in which local environment and its physical characteristics is the root for solution and puts gravity is main source of energy (The Blue Economy, 2018). - The Blue Economy also provides a source of case studies to encourage innovations which aims to protect nature as well as create new job opportunities. - It can be said that Blue Economy and CE is interchangeable because of their purposes for better environment and human lives.. - The implementation of regenerative design can be seen in. - These concepts above have been contributing to Circular Economy schools of thought by different ways. - BARRIERS TO THE IMPLEMENTATION OF CIRCULAR ECONOMY IN BUSINESSES Circular economy with many concepts behind it is considered as a solution for sustainable development. - Main reasons for limited implementation are lack of business awareness and barriers challenging company to move toward circular economy. - (2013) stress some barriers constrain companies toward CE such as shortage of advantage technologies, lack of reliable data and information, poor enforcement of legislations, lack of public awareness about the necessity of CE and so on. - (2015) in their research on transition to green economy in Turkey point out lack of green capacity, less incentive programs, implementation and control deficiencies and financial burdens are also common barriers.. - The first problem is rooted from enterprises who lack of reliable data and information and hesitate to transit their business to CE. - Thus, they lack of incentive to overcome these challenges and trade-off between their benefits and resources degradations.. - Thus, lack of public awareness and socio-cultural barriers prevent companies toward new sustainable concept.. - Last but not least, regulation and legislation are also a barrier to stop business transit to circular economy. - China is one of the earliest countries has regulation and administrative support enterprise developing and implementing CE since 1990s. - The intention of the paper was to bring an overview about Circular Economy and its implementations to businesses. - These three pillars of sustainable development present in most conceptualisation and applications of Circular Economy in both explication and implication. - Thus, Circular Economy is an important and noteworthy school of thought in sustainable developing. - On the other hands, some companies and manufacturers successfully driving their businesses into Circular Economy demonstrate positive impacts of the credible concept on environment, society and economy. - The Economics of the Coming Spaceship Earth’. - Cradle to cradle: Remaking the way we make things.. - Towards a circular economy—Business rationale for an accelerated transition.. - Is the circular economy a new fast-expanding market?. - Scientific American, 261(3), pp.144-153.. - The circular economy and circular economic concepts–a literature analysis and redefinition. - A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems. - Journal of Cleaner production, 114, pp.11-32.. - A Review of the Circular Economy and its Implementation. - International Journal of Green Economics, 11(3-4), pp.251-288.. - Towards circular economy implementation: a comprehensive review in context of manufacturing industry. - Journal of Cleaner production, 115, pp.36-51.. - In State of the world 2008: Innovations for a sustainable society (pp. - Applying the principles of green engineering to cradle- to-cradle design. - From deep ecology to the blue economy. - A review of the main concepts related to environmental, social and ethical business that contributed to the creation of The Blue Economy, 17.. - The blue economy: 10 years, 100 innovations, 100 million jobs. - circular economy: Alternative concepts for trans-disciplinary research. - Environmental Development, 17, pp.48-56.. - Decision Sciences, 44(1), pp.7-38.. - The potential for substituting manpower for energy, report to the Commission of the European Communities.. - A review of the circular economy in China: moving from rhetoric to implementation. - Journal of Cleaner Production, 42, pp.215-227.. - 195, pp.1238–1245.. - 18, pp.659–665.
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