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Journal of Cleaner Production 115 (2016) 36e51

Contents lists available at ScienceDirect

Journal of Cleaner Production


journal homepage: www.elsevier.com/locate/jclepro

Review

Towards circular economy implementation: a comprehensive review


in context of manufacturing industry
Michael Lieder*, Amir Rashid
€gen 68, SE-100 44 Stockholm, Sweden
Department of Production Engineering, KTH Royal Institute of Technology, Brinellva

a r t i c l e i n f o a b s t r a c t

Article history: The concept of circular economy (CE) is to an increasing extent treated as a solution to series of chal-
Received 1 July 2015 lenges such as waste generation, resource scarcity and sustaining economic benefits. However the
Received in revised form concept of circularity is not of novel as such. Specific circumstances and motivations have stimulated
12 November 2015
ideas relevant to circularity in the past through activities such as reuse, remanufacturing or recycling.
Accepted 1 December 2015
Available online 22 December 2015
Main objectives of this work are: to provide a comprehensive review of research efforts encompassing
aspects of resources scarcity, waste generation and economic advantages; to explore the CE landscape in
the context of these three aspects especially when they are considered simultaneously; based on an idea
Keywords:
Circular economy
of a comprehensive CE framework, propose an implementation strategy using top-down and bottom-up
Framework approach in a concurrent manner. To fulfill this objective a comprehensive review of state-of-the-art
Implementation research is carried out to understand different ideas relevant to CE, motivation for the research and
Resource scarcity context of their recurrence. Main contributions of this paper are a comprehensive CE framework and a
Environmental impact practical implementation strategy for a regenerative economy and natural environment. The framework
Economic benefits emphasizes on a combined view of three main aspects i.e. environment, resources and economic ben-
efits. It also underlines that joint support of all stakeholders is necessary in order to successfully
implement the CE concept at large scale. The proposed framework and implementation strategy also
identify new avenues for future research and practice in the field of CE.
© 2015 Elsevier Ltd. All rights reserved.

Contents

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
2. Research methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
3. Present circular economy research landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
3.1. Overview of CE research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
3.2. Related areas to circular economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
3.2.1. Transformation of economic structures and business rationales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
3.2.2. Regenerative design and critical materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
3.2.3. Industrial ecology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
3.2.4. Remanufacturing and closed-loop supply chains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
3.2.5. Resource conservative manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
3.2.6. Governmental CE initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
3.3. Discussion of state of the art research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
4. A comprehensive framework on CE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
5. Practical implementation strategy for CE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
6. Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Acknowledgment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Supplementary material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

* Corresponding author. Tel.: þ46 8 790 9012.


E-mail addresses: lieder@kth.se (M. Lieder), amirr@kth.se (A. Rashid).

http://dx.doi.org/10.1016/j.jclepro.2015.12.042
0959-6526/© 2015 Elsevier Ltd. All rights reserved.
M. Lieder, A. Rashid / Journal of Cleaner Production 115 (2016) 36e51 37

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Web references . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

minimizes matter, energy-flow and environmental deterioration


without restricting economic growth or social and technical prog-
Abbreviations
ress” (Stahel, 1982). For this paper, the relevant CE definition is the
one of “an industrial economy that is restorative or regenerative by
3R reduction, reuse and recycling
intention and design” (Ellen Macarthur Foundation, 2013). This
APRA automotive parts remanufacturers association
definition is more comprehensive as it considers both the envi-
CE circular economy
ronmental and economic advantages simultaneously under the
EIP eco-industrial park
notion of regenerative performance requiring high quality circula-
EU European Union
tion of technical nutrients while ensuring safe entry of bio nutrients
ICT information and communication technology
in the biological sphere.
LCA lifecycle assessment
The concept of circularity, especially in terms of closed material
ResCoM resource conservative manufacturing
loops, is not a concept of novelty originating from recent de-
PSS producteservice systems
velopments, but has been emerging now and then throughout the
UK United Kingdom
history: Before the industrial revolution, i.e. in times of crafts-
WEEE waste electrical and electronic equipment
manship and hand production methods, waste as unwanted or
WW2 world war two
unusable material was virtually unknown (Strasser, 2000). A so
called ‘stewardship of objects’ has been the prevailing practice with
the primary purpose of maintaining possessions by performing
1. Introduction reparations, repurposing or recycling leaving disposal scarcely as an
option. There is general acceptance that the industrial revolution is
Relationship between industry and environment is crucial for responsible for the changing relationship between individuals and
industrial business performance. Environmental impacts have the material world (Siegle, 2006; Mathews, 2011; Strasser, 2000).
incrementally increased pressure on industrial businesses. After the industrial revolution disposable products with the explicit
Looking back to the beginning of the industrial revolution, mass purpose of being discarded after use (planned obsolesce) heralded
production of goods was enabled by new manufacturing methods the era of fashion and style hence stimulating throwaway-mindset
resulting in products with high availability and low costs. Conse- which is today known as linear consumption behavior. Successively,
quently, due to new consumer societies and staggering growth in problems of environmental pollution and landfill became severe
industrial activity, emissions to environment, solid waste genera- leading governments around the world to initiate waste reduction
tion and landfill have become increasingly severe. In addition, due and recycling programs. Moreover, taking into account mechani-
to a growing world population and especially strong middle-class zation of society through steam engines, railways and electrical
growth the demand for resources is expected to rise rapidly indi- equipment a new form of product recovery arose today known as
cating a rising consumption of natural resources. Since planet remanufacturing in which durable products are restored to a “like
earth's resources are limited the requirements of exponential new” condition (Steinhilper, 1998). The birth of remanufacturing
economic and population growth cannot be met (Meadows et al., can be traced to the times of world war two (WW2) when resources
1972). In this scenario, it is not only the challenge of environ- became scarce and automotive industry was enforced to perform
mental pollution that is becoming acute but the challenge of global remanufacturing (Automotive Parts Remanufacturers Association,
resource scarcity as well. These circumstances confront 2015). However, after times of war the remanufacturing industry
manufacturing industry to simultaneously cope with the pressure experienced continuous growth over the years driven primarily by
of environmental regulations, challenges of resource price volatility the economic and competitive advantages. In the beginning of the
and risks in resource supply, in addition to their daily business. As 2000s, China with its staggering population and rapidly developing
individual competitiveness is thereby influenced fundamentally, industry realized its mismatch between economic development
manufacturing companies find themselves in a progressively un- and resulting environmental impacts. As a consequence, the gov-
certain position when it comes to resource supplies. Increased ernment of China formally accepted the concept of CE as a new
competition for access to scarce or critical resources has become development strategy in 2002 and approved the first law “Circular
another major concern for manufacturing industry (European Economy Promotion Law of the People's Republic of China” which
Commission, 2014b) in addition to fulfilling obligations on envi- took effect in January 2009 (The Standing Committee of the
ronmental legislation at minimum cost. National People's Congress China, 2008). Since the approval of
In the light of the discussed series of challenges and the un- this law major research efforts have been made towards
derlying limitations of a linear economy, i.e. take-make-use- nation-wide implementation of a CE in China. More recently, eco-
dispose, the concept of a circular economy (CE) is considered as a nomic opportunities of CE have been outlined in the European
solution for harmonizing ambitions for economic growth and Union (EU) emphasizing advantages for the industrial sector such
environmental protection. There are various possibilities for as reduction of material costs or larger profit pools (Ellen
defining CE. In line with eco-industrial development CE is under- Macarthur Foundation, 2013).
stood as “realization of closed loop material flow in the whole In summary, attempts to respond to challenges of resource
economic system” (Geng and Doberstein, 2008). In association with scarcity, environmental impact or economic benefits or combina-
the so called 3R principles (reduction, reuse and recycling) “the tions of these have been made by governments, industries and
core of CE is the circular (closed) flow of materials and the use of societies around the world. However, major part of these attempts
raw materials and energy through multiple phases” (Yuan et al., has been lacking a systematic approach and therefore the CE
2006). Taking into account economic aspects CE can also be approach appears not only apposite but also inevitable. In this
defined as “an economy based on a “spiral-loop system” that scenario, the objective of this review paper is to.
38 M. Lieder, A. Rashid / Journal of Cleaner Production 115 (2016) 36e51

 investigate the research landscape to understand in what


different contexts CE has been researched so far,
 explore the comprehensive CE perspective which considers as-
pects of resources scarcity, environmental impact and economic
benefits simultaneously and
 propose a framework to be used as a CE implementation strat-
egy, especially keeping the manufacturing industry in mind.

In order to fulfill these objectives this paper first explores the


current CE research landscape and then analyzes the acquired in-
formation. In the next step, the outcome is evaluated with refer-
ence to the comprehensive CE scope, i.e. resource scarcity,
environmental impact and economic benefits. Finally, a framework
is proposed as a way forward towards implementing the compre-
hensive CE approach in industry. This paper is organized in five
sections where Section 2 presents the applied research methodol-
ogy in detail. In Section 3, current research on CE is investigated and
relevant is literature reviewed. Section 4 derives a comprehensive
CE framework followed by a practical implementation strategy. In
the last section, conclusions are drawn from the performed
research.

2. Research methodology

In the first step a systematic review of research articles is carried


out to identify the current state of academic insight with regards to
the circular economy concept. If accessible, published articles were
extracted from the Web of Science (science technology and social
sciences database) as well as Scopus1 using the keyword “circular
economy” for the years 1950 until 2015. This resulted in more than Fig. 1. CE review method.
2000 items considering the results from both databases. As this
review is limited to journal publications in English the language
filter has been set to “English”. Filters for document type have been which have performed research towards CE and that are repre-
set to “articles”, “review” and “editorial” which produced a total of sented in geographically independent CE research as well as CE
315 articles in Web of Science and 344 articles in Scopus. As a next research with explicit focus on China2:
step, articles have been considered for review that were published
during the last five years (January 2010 until May 2015 inclusively)  Industrial ecology dealing with patterns of material and energy
or have been cited at least five times between 1950 and 2009. After flows within and outside of industrial systems, including tech-
removing duplicates and scanning of all abstracts to remove articles nological dynamics
irrelevant to the topic of this research a total of 158 papers resulted  Environmental science containing studies of environmental
as a basis for review. Articles have been regarded as irrelevant if the impacts through e.g. industrial systems including their conse-
association with CE, i.e. an industrial economy which is regenera- quences on natural environment through waste and emission
tive by intention, has been absent.  Management and economics containing studies on economic
Due to the major share of articles focusing on China (see Fig. 2) concepts and analyses to the problems of formulating rational
as a result of the “Circular Economy Promotion Law of the People's managerial decisions
Republic of China” all articles were clustered geographically at first,  Business management focusing on studies which are associated
thus leading to a categorization into research specifically targeting with enterprise operations and include activities such as con-
implementation of CE in China and geographically independent CE trolling, leading, monitoring, organizing, and planning
research. Geographically independent CE research in this context  Supply chain management involving studies on flow of goods
stands for research which is not linked to a strategy of a particular and services
geographic region.  Sustainability science simultaneously involving studies with
In order to account for a comprehensive overview for these two economic, environmental and societal criteria
categories the articles have been categorized once more into two  Process engineering dealing with studies concerning design,
sub-categories according to research field as well as type of research. operation, control, and optimization of chemical, physical, and
The combined perspective of the two sub-categories allows for biological processes
obtaining a graphical representation of the current CE research  Management and law containing studies on policies that are
focus for each of the two main categories as shown in Figs. 3 and 4. enforced through social institutions to govern behavior
As a result of the review, nine research fields have been identified  Social science dealing with studies concerning society and the
relationships among individuals within a society

1
Considered subject areas in Scopus: environmental science, social science, en-
gineering, economics, econometrics and finance, energy, business, management
and accounting, agricultural and biological science, computer sciences, mathe-
2
matics, biochemistry, chemistry, materials science, medicine, decision sciences, If not evident or further specified in the article, the affiliation of the corre-
chemical engineering, multidisciplinary, psychology, undefined. sponding author has been taken as an indication for the field of research.
M. Lieder, A. Rashid / Journal of Cleaner Production 115 (2016) 36e51 39

Fig. 2. Distribution of reviewed academic publications including geographic focus in which CE has been published without specified research perspective.

In order to obtain an overview about the type of research that 3. Present circular economy research landscape
has been carried out in each research field three sub-categories
have been formed: 3.1. Overview of CE research

 Review studies on previously published literature, which may Fig. 2 provides an aggregated overview of relevant academic
include discussions on existing concepts to propose new ones. literature including their geographic focus since 1950. Accordingly,
 Specific studies limited to particular industries and/or there has been a strong publication increase in the field of CE with a
geographic regions including empirical analyses. This type of peak in this year 2015. As can be seen, the number of publications has
research may also contain experimental setups. nearly tripled since the beginning of this decade and doubled in the
 Development work resulting in frameworks, tools, models and last three years (27 publications in 2015 by June in comparison to 14
methods for decision-making support towards CE imple- publications in 2012 and 10 publications in 2010). Another notable
mentation. This type of research may include conceptual as well result is a strong publication record for CE research with explicit focus
as empirical studies to motivate the purpose of the on issues within China, which makes up the majority of all CE
development. research articles (54%) and exceeds the sum of geographically inde-
pendent research (roughly 36%). Few studies in the field of CE have
The 156 research articles have been reviewed in an iterative been performed with focus on global regions other than China. These
process in which comparisons for similarities and differences have make up about 10% of the investigated CE research articles of which
been made in order to achieve consistency in the resulting sub- more than half have a geographic focus on Europe. It is worthwhile to
categories thus reducing the number of relevant research articles note that China's enormously high publication record seems to be the
to finally 136. A list of publications and their allocation into the sub- consequence of China's CE strategy which took effect in January 2009.
categories can be found in Appendix A. Since the approval of this law major attention has been given towards
Furthermore, the different perspectives from which CE has been implementation of a circular economy on corporate, inter-firm and
researched so far have been identified. The research articles have social level (Geng and Doberstein, 2008). There appears to be a
been allocated to the perspective of resource scarcity if the research general increase of interest in CE considering the increasing number
topic or motivation is energy and material consumption, criticality of geographically independent research articles after 2010.
of materials or resource productivity. If solid waste, landfill, emis- Table 1 provides a concise but comprehensive summary of
sions or pollution were outlined as reason for the CE research, the research articles reviewed for this work. The structure of Table 1 lists
perspective of environmental impact has been assumed. Thirdly, the current CE research perspectives of resource scarcity, environ-
financial aspects such as cost savings, revenue increases or gross mental impact, economic benefits and combinations of these as
domestic product account for the CE perspective of economic motivated in Section 1 and further described in Section 2. Within
benefits. each of the perspectives articles are grouped according to review
As database queries were static and the use of the phrase “cir- articles, specific studies and development work. Moreover, in each
cular economy” gained popularity quite recently a more extensive group the references and highlights of each paper are briefly out-
review is necessary to allow for consideration of adjacent research lined in reverse chronological order. As can be seen, the by far
areas that may be of relevance but have treated aspects of CE under largest share of CE research is done from the perspectives of
different notations. Therefore, a brief synthesis of themes related to resource scarcity and environmental impact. However there is also
CE-thinking is also carried out in which other relevant research considerable CE research which takes into account economic ben-
streams are highlighted. These research streams are either directly efits in addition to perspectives of resource scarcity and environ-
referenced in the identified 136 research articles (Section 3.2) or mental impact (see last section of Table 1). Figs. 3 and 4 show
indirectly supportive of CE-thinking (as e.g. remanufacturing). another view of the literature on the same publications that are
The development of a comprehensive CE view is subsequently listed in Table 1. The largest share of CE research has been done with
carried out by critical review of the findings from the review in the focus on China in the fields of industrial ecology and environmental
light of the major associated challenges resource scarcity, envi- science (Fig. 4). This is also reflected in Table 1 as most of CE research
ronmental impact and economic benefits as presented initially. An with focus on China is allocated within the perspective of resource
implementation strategy for CE is then proposed in the following scarcity and environmental impact. Especially case studies of Chi-
steps. Fig. 1 illustrates the research method of literature review nese regions or industries are relatively high in number. In com-
including all important steps. In the following section the findings parison, geographically independent CE research is by far more
are discussed in detail. diverse and hence more challenging to characterize since it does not
40 M. Lieder, A. Rashid / Journal of Cleaner Production 115 (2016) 36e51

Table 1
Summary of research articles analyzed from the CE perspectives “resource scarcity”, “environmental impact”, “economic benefits” and their combinations including references
and highlights.

Resource scarcity
References of review articles (previously published literature)
Peck et al., 2015; Dodson et al., 2015

Highlights
 analysis and comparison of selected definitions and descriptors of critical materials produced
 overview of current research in the area of critical and precious metals recovery using biosorption including application and potential use

References of specific studies (industries and/or geographic regions)


Shi and Yu, 2014; Lu, 2014; Chang et al., 2011; Tu et al., 2011; Hara et al., 2011; Fern
andez, 2007

Highlights
 eco-industrial park development in Tianjin, Fuzhou and Xi'an China
 merge of concept of marine CE with the economic development
 theoretical foundation to formulate policy on bioenergy development
 use of clean energy in a Jincheng China, including potential, present status and future of renewable energy
 discussion on energy intensity of the industrial sectors of the Yangtze River Delta
 examination of material resource consumption of the Chinese building construction

References of development work (frameworks, tools, models and methods for decision-making)
Geng et al., 2011; Geldermann et al., 2010; Leontief, 1991

Highlights
 approach for multi-scale integrated analysis of societal metabolism
 concept of the multi objective pinch analysis eco-industrial park assessment
 promotion of a generic CE concept

Environmental impact
References of review articles (previously published literature)
Ampelli et al., 2015; Mirabella et al., 2014; Xue et al., 2014; Grundmann et al., 2013; Huang et al., 2009

Highlights
 possibilities of chemical and energy industry by discussing, among others, CO2 CE and its impact
 use of food waste coming from food manufacturing
 performance changes during different five-year plan stages for emission control in China
 summary of background, aims and issues and the most important outcomes of an EU funded project about risks of chemicals
 current technologies and treatment status in China

References of specific studies (industries and/or geographic regions)


Lu et al., 2015; Kama, 2015; Farmer et al., 2015; Wübbeke and Heroth, 2014; Usapein and Chavalparit, 2014; Wang et al., 2013; Dienst et al., 2013; Zhang et al., 2013; Lahl
and Zeschmar-Lahl, 2013; Liu et al., 2012; Matus et al., 2012; Wang and Geng, 2012; Xi et al., 2011; Sakai et al., 2011; Li et al., 2010; Mo et al., 2009; Peters et al., 2007

Highlights
 collected and dismantled e-waste from 2000 to 2012
 investigation of the reinvention of electrical and electronic waste as a resource in the context of the EU market economy
 analysis of waste management practices England
 examination on reasons why steel recycling is still relatively weak in China
 application of 3R concept (reduce, reuse, recycle) at petrochemical factory level
 experimental research on fly ash for effective reuse
 overview of developments regarding greenhouse gas emissions in Wuxi China
 demonstrates a potential technology for syngas fermentation in the hollow-fiber membrane biofilm reactors
 need for legislative action in light of pollutant emission and concentration of hazardous substances
 proposition of a constructivism scenario evolutionary analysis based on bargaining games
 identification of different factors driving innovation in the fields of green chemistry and green engineering in China
 case study of Dalian China to inform initiatives in other cities and potential solutions of feasible strategies for municipal solid waste
 case study of Shenyang China on greenhouse gas emissions
 international workshop for 3R (reduce, reuse, recycle) and waste management in Kyoto Japan
 promotion of earthworms as best raw materials for the biochemical and pharmaceutical industries in a CE
 characterization of the recycling system in Suzhou China
 analysis of changes in various changes on CO2 emissions in China

References of development work (frameworks, tools, models and methods for decision-making)
Li and Yu, 2011; Winkler, 2011; Veenstra et al., 2010

Highlights
 legislative system to provide legal protection for the development of a CE
 concept of sustainable supply chain networks as a suitable means of designing closed-loop production systems
 model that allows for the analysis of the flow of Waste Electrical and Electronic Equipment (WEEE) through the reverse chain from point of collection through to final
disposal

Resource scarcity & environmental impact


References of review articles (previously published literature)
Andrews, 2015; Velis, 2015; Wang and Chang, 2014; Naustdalslid, 2014; Schulte, 2013; Su et al., 2013; Xunhua and Yan, 2013; Bilitewski, 2012; Mathews, 2011; Mathews
and Tan, 2011; Zhang et al., 2010; Geng and Doberstein, 2008; Yong, 2007; Moriguchi, 2007; Yuan et al., 2006
M. Lieder, A. Rashid / Journal of Cleaner Production 115 (2016) 36e51 41

Table 1 (continued )

Highlights
 promotion of designers as crucial to the development of the new economic model of CE
 outline and exploration of the interface between CE and globalized waste flows
 study on the development of policy instruments that support the low-carbon governance in China
 discussion on CE for more comprehensive understanding and critique of the Chinese version of CE as part of a wider policy
 promotion of CE based on analysis of the business constraints imposed by increasingly scarce resources
 concept, current practices and assessments of CE
 promotion of changing from traditional mode towards low-carbon circular mode of production in large-scale machine industry
 CE risks to be overcome in the light of chemicals
 discussion on how industrial capitalism might be ‘naturalized’ towards growth while keeping quality of life without destroying resources
 transformation from a linear to a CE and the evolutionary processes in which dynamic linkages are gradually established over time
 introduction of practice of Chinese pilot eco-industrial parks
 introduction of the development of the CE concept in China
 the why, what and how of the Chinese CE
 progress in material flow analysis and its use in providing resource productivity indicators
 introduction of CE as new development strategy for China

References of specific studies (industries and/or geographic regions)


Wang et al., 2015; Dai, 2015; Smol et al., 2015; Yu et al., 2015b; Dururu et al., 2015; Riding et al., 2015; Li and Ma, 2015; Withers et al., 2015; Kiss et al., 2015; Kuo et al.,
2015; Gregson et al., 2015; Yu et al., 2014; Sevigne -Itoiz et al., 2014; Bakker et al., 2014; Liu and Bai, 2014; Lee et al., 2014; Ma et al., 2014; Wang et al., 2014; Dong,
Zhang, et al., 2013; Kopnina, 2014; Vermeulen, 2013; Wheeler and Glucksmann, 2013; Reh, 2013; Johansson et al., 2012; Chen et al., 2012; Zhu et al., 2012; Pauliuk et al.,
2012; Zhou et al., 2012; Hu et al., 2011; Zhang et al., 2011; Wen and Li, 2010; Li et al., 2010; Xue et al., 2010; Zhu et al., 2010; Geng et al., 2009; Yabar et al., 2009; Liu
et al., 2009; Kosseva, 2009; Amir, 1994

Highlights
 case study on eco-province construction in Shandong China
 material flow analysis of iron and steel industry
 use of ash from sewage sludge incineration in construction industry as an environmental alternative in a CE
 eco-industrial park development in Rizhao China
 examination of public engagement with voluntary and community sector organizations and the factors that influenced this engagement
 scientific, regulatory and socioeconomic barriers to the use of the nutrient waste streams
 study of papermaking park Guangdon China
 strategic framework of 5R practice for phosphorus stewardship
 arguments towards integrated bio-processing to link basic developments in biosciences with possible industrial applications
 examination of whether Chinese firms' signals of green governance vary with ownership structure and environmental sensitivity
 analysis of two case studies of resource recovery in the United Kingdom (UK) including challenges towards CE within the EU
 process analysis of eco-industrial park development Tianjin
 determination of greenhouse gas emissions of old scrap collected and sorted for recycling, considering market interactions
 exploration of product life extension strategies, concluding that tailored approaches are needed
 empirical research on the awareness and behavior of firms in developing CE
 investigation how resource strategies that reduce waste and increase recycling influence human exposure to hazardous chemicals
 study on private iron and steel enterprises in Wu'an China
 exploration of determinants of CE accounting information disclosure quality
 reflection on consumption, waste and sustainable development
 industrial symbiosis activities in iron/steel industry in Liuzhou and Jinan
 study of 'consumption work' to show how consumer is both at the end and starting point of a circular global economy of material reuse
 proposal of ‘meta’-governance for sustainable supply chains including new approaches by governments
 limitations and trends of possible developments in processing engineering
 discussion on the transformation of landfills to valuable assets
 factors of project scale, recycling boundary, and types of waste in relationship to environmental benefits and operational performance
 survey of Chinese manufacturers highlighting that international institutional pressures positively relate to domestic environmentalism
 dynamic material flow analysis to forecast production, recycling, and iron ore consumption
 investigation of urbanization on Chinese energy consumption patterns
 CE model for leather tannery waste
 presentation of problems before remanufacturing, during remanufacturing and after remanufacturing including several barriers
 evaluation of material metabolism of China's highway traffic system
 analysis of key energy-consuming process industries in China focusing on energy efficiency, energy consumption, waste emission
 survey of officials' awareness on CE development in China
 examination if different types of manufacturing enterprises on environmental-oriented supply chain cooperation exist
 CE initiatives in Dalian
 evolution of environmental policies in Japan and China and proposes viable measures
 public awareness and performance in the promotion of CE in Tianjin China
 existing trends in the food waste processing technologies during the last 15 years
 replacement of traditional systemic analog of an economy, which is the closed “circular flow” process, with the steady flow process

References of development work (frameworks, tools, models and methods for decision-making)
Wen and Meng, 2014; Bai et al., 2015; Walls and Paquin, 2015; Busch et al., 2014; Amouroux et al., 2014; Park and Chertow, 2014; Fusco Girard, 2014; Jiliang et al., 2013;
Jones et al., 2013; Dong, Fujita, et al., 2013; Zhang et al., 2013; Geng et al., 2013; Li et al., 2013; Zhou et al., 2013; Thomas and Birat, 2013; Chertow and Ehrenfeld, 2012;
Geng et al., 2012; Mattila et al., 2012; Chang-Ming et al., 2012; Grosse, 2011; Geng et al., 2010; Xu et al., 2009; Zhijun and Nailing, 2007; Gao et al., 2006; Esrey, 2001

Highlights
 combination of substance flow analysis approach with resource productivity indicator
 critical review and analysis of corporate sustainability development (CDS) in China for a theoretical framework among CSD drivers
 framework highlighting how past industrial symbiosis research connects with numerous organizational perspectives
 stocks and flows model for the dynamic assessment of material demands resulting from infrastructure transitions
 proposed approach to identify the carbon recovery through a circular industrial revolution including 3 industrial examples

(continued on next page)


42 M. Lieder, A. Rashid / Journal of Cleaner Production 115 (2016) 36e51

Table 1 (continued )

 proposition of a ‘regenerative city’ as new paradigm to boost city wealth considering circular processes and synergies
 indicator for “reuse potential” to help both material and waste managers sort out decisions about technical feasibility of reusing discards
 unified CE index System under the condition and trend of green supply chain management
 introduction of Enhanced Landfill Mining defined as the safe conditioning, excavation and integrated valorization of waste streams
 physical input and monetary output model for industrial symbiosis evaluation
 hybrid material and energy flow analysis approach at company level
 emergy indicator system
 extended economy-wide material flow analysis model
 evaluation index system of CE for iron and steel enterprises based on Support Vector Machine with Radial Basis Function kernel
 extended lifecycle assessment (LCA) tool for resource efficiency and more specifically waste management at the end of life products
 discontinuous three stage model of industrial symbiosis drawing on biological, ecological, organizational and systems theory
 CE indicator system
 exploration of methodological issues encountered in application of LCA to various research questions arising from industrial symbiosis
 assessment and analysis of supportiveness of CE based on evaluation indicator system of coal industry
 model for CE evaluation
 method based upon emergy analysis and synthesis
 systems dynamics and multi-objective programming model for planning a regional CE
 implementation framework for CE
 three-level education framework to meet theoretical and technological needs of CE implementation
 introduction of a new approach called Ecological Sanitation

Resource scarcity, environmental impact & economic benefit


References of review articles (previously published literature)
Yu et al., 2015a; Schetters et al., 2015; Bonciu, 2014; Stahel, 2013; Crainer, 2013; Webster, 2013; Andersen, 2007

Highlights
 use of LCA approach to evaluate the environmental benefits and costs of industrial symbiosis
 process changes in drinking water treatment
 analysis of a broader approach that places human activity into a long term CE perspective
 characteristics and advantages inherent in a CE arguing that the shift towards a CE can be accelerated by a shift in public policy
 examination of CE theory and the highlighting of initial best practices
 highlighting of systemic defects within education for sustainable development
 introduction to some of the fundamental principles and approaches in environmental economics

References of specific studies (industries and/or geographic regions)


Ge and Jackson, 2014; Ongondo et al., 2013; Li et al., 2012; Zhu, Geng, Sarkis, et al., 2011; Zhu, Geng & Lai, 2011; Zhang et al., 2009; Yang and Feng, 2008; Zhang et al., 2008;
Mayers et al., 2005

Highlights
 real-time data analytics for adaptive calibration and CE development
 analysis of operations enterprises involved in the reuse of information and technology equipment
 nonrenewable energy saving, ecological benefits and economic benefits by use of biogas fertilizer
 investigation of different Chinese manufacturer clusters and their extent of implementing green supply chain management
 examination of environmental supply chains cooperation practices with regard to CE practices and performance outcomes
 discussion on the current state of CE and the sustainable development of eco-industrial parks
 case study of industrial symbiosis “Nanning Sugar Co.”
 analysis of the current status of urbanization
 lifecycle assessment and costing to investigate the possible environmental effects of the WEEE Directive

References of development work (frameworks, tools, models and methods for decision-making)
(Chen et al., 2015; Ma et al., 2015; Wu et al., 2014; Park et al., 2010; Greyson, 2007)

Highlights
 methodological framework to measure target and planned resource-conserving and environmental-friendly development
 set of tools for chemical industries
 method of super-efficiency 'data envelopment analysis' window analysis to dynamically evaluate CE efficiency of 30 regions in China
 analysis of emerging integration of business value and environmental returns in the context of China's CE
 approach to prevent waste and other global impacts based on precycling, CE policy and recycling insurance

align with an overall formalized strategy as in the case of CE research aspects linked to CE-thinking which were referenced throughout
in China. Consequently, the identified research is spread over a the review process described in Section 3.1 or furthermore indi-
broader range of research fields as indicated in Fig. 3. Moreover, rectly support CE through existing concepts. As these theories and
Fig. 3 shows the same research fields as Fig. 4, but includes further aspects are dispersed and deferred this section attempts to provide
research fields summarized under “others”, which make up the a theme-oriented overview of CE-related developments as com-
majority of geographically independent CE research. These addi- plement to the previous, rather static, database search. In doing so,
tional research fields are diverse and comprise material science, an even more comprehensive picture of CE developments can be
chemical engineering, industrial design, ecology, education, waste obtained. In this section relevant theories and aspects have been
management, information and communication technology, applied grouped to the following themes:
physics and mathematics as well as architecture.
 Transformation of economic structures and business rationales
3.2. Related areas to circular economy  Regenerative design and critical materials
 Industrial ecology
Like any multi-disciplinary field circular economy also contains  Remanufacturing and closed-loop supply chains
elements from various disciplines and paths of research that are the  Resource conservative manufacturing
predecessors of current knowledge. There are several theories and  Governmental CE initiatives
M. Lieder, A. Rashid / Journal of Cleaner Production 115 (2016) 36e51 43

Fig. 3. Number of research articles for geographically independent CE research categorized into research field and type of research.

3.2.1. Transformation of economic structures and business repair, reconditioning and recycling activities has been promoted
rationales (Stahel and Reday-Mulvey, 1981). Main focus here has been the
A number of discussions have emphasized the need of change in extension of product lives in order to minimize material flows,
the nature of the prevailing economic structure from one that is energy flows and environmental damage to support a transition
characterized as open system with the assumption of unlimited towards a sustainable society which is consistent with the resource
resource supplies towards one that is characterized as closed sys- limitations (Stahel, 1982). This line of thought persisted during the
tem with limited resource supplies. following decades eventually emphasizing a shift towards selling
The very first research towards closed systems can be traced performance, i.e. services, instead of goods. In this shift towards a
back to 1966 (Boulding, 1966). Illustrating planet earth as spaceship service-oriented economy, CE is currently seen as a necessary
on a long journey in possession of limited resources the discussion concept which emphasizes fundamental changes in today's domi-
on open and closed systems in this article has been introduced with nating business models (Stahel, 2010).
particular focus on interaction of economy and environment. With The first use of the term “Circular economy” as such has been
special regard to behavioral aspects a change of economic princi- found in 1990 during the attempt to model an economy applying a
ples has been highlighted as a necessity in order to comply with the materials balance model which follows the first and second law of
nature and demands of a closed system. In this view, economic thermodynamics (Pearce and Turner, 1990). In this materials bal-
success ought not to be measured by throughput of industrial ance model resource supply, waste assimilation and utility have
production, but rather “nature, extent, quality, and complexity” of been identified as three economic functions of the environment in a
earth's available resource stock, which also includes humans. world where “everything is an input to everything else”. Hence, a
Involving the private sector and highlighting business opportu- model for a circular economy has been designed that defines the
nities e.g. in manufacturing industry, from 1981 onwards an relationship between economics and environment. In a similar
economy based on a system of product loops consisting of reuse, context, another study uses the laws of thermodynamics to

Fig. 4. Number of research articles for CE research with explicit focus on China categorized into research field and type of research.
44 M. Lieder, A. Rashid / Journal of Cleaner Production 115 (2016) 36e51

examine economic and ecological systems and highlights in- products, modularization and remanufacturing, component re-use,
efficiency of (isolated) economics systems as well as overuse of and designing products with less material (Allwood et al., 2011).
environmental resources (Amir, 1994). These design strategies include decision points to be made during
Collaterally, the field of producteservice systems (PSS) has the course of product design which are linked to the criticality of
emerged from the 1990s as a research field and is in most cases materials. Various terms and definitions have been discussed when
associated with economic prosperity and sustainable resource it comes to the meaning of material criticality (Peck et al., 2015). In
management. Using “a mix of tangible products and intangible the specific context of product design, materials are considered as
services designed and combined so that they are jointly capable of critical “if supply is concentrated in one country or could be
fulfilling final customer needs” (Tukker and Tischner, 2006) it is restricted by a few corporate interests, and because they are
argued that an increase in service-orientation, rather than product- important economically or for national security” (Ashby, 2012).
orientation, will facilitate the design of systems with significantly Supply risks, environmental implications and vulnerability to
lower environmental impacts while maintaining economic supply restrictions are common characteristics associated with
prosperity. material criticality and therefore directly related to the global
In line with the challenges of waste generation and resource challenge of resource scarcity.
scarcity a new economy, termed blue economy, is proposed which
is stimulated by innovation and creativity as part of social entre- 3.2.3. Industrial ecology
preneurship (Pauli, 2010). In this context new business models are Originally not focusing on manufacturing-related objects ecol-
promoted with the underlying motivation of combining disparate ogists adopted a view that included industrial systems and
environmental problems with scientific solutions based on physical perceived these as a type of ecosystem, thus resulting in the
processes from the natural world. Examples are the exploitation of research field industrial ecology (Erkman, 1997). Today industrial
gravity as primary source of energy or the use of cascading systems ecology is a well-established research area considering a systemic
to generate cash-flows based on waste. Aiming at a shift from an perspective, complex patterns of material and energy flows within
economy that is based on scarcity towards an economy that is and outside of the industrial system and technological dynamics.
based on resource abundance solutions are proposed that include a “Industrial ecology is the means by which humanity can deliber-
series of innovations which possess ecosystem-like functions and ately approach and maintain sustainability, given continued eco-
hence provide both economic and environmental benefits also nomic, cultural, and technological evolution. The concept requires
resulting in wider social benefits. that an industrial system be viewed not in isolation from its sur-
rounding systems, but in concert with them. It is a systems view in
3.2.2. Regenerative design and critical materials which one seeks to optimize the total materials cycle from virgin
Since the 1970s landscape architectural regenerative design material, to finished material, to component, to product, to obsolete
strategies have been taught. As it has been apparent that the product, and to ultimate disposal.” (Graedel and Allenby, 2010)
character of regenerative systems is distinguished from the Industrial ecology operates at three levels, namely factory level,
prevailing industrial systems, strategies for regenerative design inter-firm level and regional or global level (Chertow, 2000). On
(Lyle, 1996) were developed to support sustainable develop- factory level attention is put on cleaner production through e.g.
ment. In practice this means that daily activities are “based on environmental protection or reduction of waste and emissions. On
the value of living within the limits of available renewable re- inter-firm level collaboration and synergies are emphasized that
sources without environmental degradation” (Lyle Center, are enabled through geographic proximity, thus leading to indus-
2006). This biomimicry of ecosystems is intended to function trial symbiosis and developments of EIPs which include physical
as a fully regenerative closed ecological-economic system exchange of materials, energy, water and by-products with the aim
including both human as well as industrial systems, which re- of reaching competitive advantage as a collective approach. On
quires renewal or regeneration of sources of energy and mate- regional or global level rather sociological perspectives are taken. In
rials that have been consumed. Efforts to close the material loop this context industrial metabolism is mentioned as study of ma-
by cradle-to-cradle design approaches have been researched terial and energy flows through societies and the sources as well as
since 1990. In line with the regenerative design approach from causes of emissions including their connection to human activities
the 1970s the cradle-to-cradle approach mimics nature's eco- (Ayres and Simonis, 1994). Adjacent to studies of industrial meta-
systems from a toxicity and design perspective. Emphasis is put bolism ecological modernization theory focuses on rather socio-
on shifting from a linear consumption system as “make-use- logical perspectives of industrial and environmental developments,
dispose” (cradle-to-grave) towards closed-loop cycles (cradle- in particular ecological risks that are associated with industrialism
to-cradle) by applying reducing, reusing and recycling methods (Murphy and Gouldson, 2000).
(Lindhqvist, 2000). The cradle-to-cradle model puts special
attention on the precise definition of molecular composition of 3.2.4. Remanufacturing and closed-loop supply chains
materials. At end of the product use life a distinction between Recovery of products or extension of their lives is to a large
two main categories is made, namely “biological nutrients” and extent driven by remanufacturing. Even though remanufacturing
“technical nutrients”. This distinction is made to differentiate has been practiced since the industrial revolution it gained strong
materials that are able to re-enter the environment from ma- momentum in the automotive sector as a consequence of WW2
terials that can remain within closed-loop industrial cycles. during the 1940s due to limited availability of natural resources and
Accordingly the design of products and systems ought to be strong need to reuse car and truck parts. Remanufacturing began
biomimetic. establishing itself as research area in the late 1990s where it has
Furthermore, product design is identified as crucial in the design been introduced as performing recycling by manufacturing
of sustainable circular systems, especially in connection with crit- (Steinhilper, 1998). In doing so, used durable products are restored
ical materials research. Product life spans have steadily declined to a “like new” condition. Key steps of remanufacturing as an in-
thus increasing material flows through society as well as waste dustrial process are defined as disassembly, cleaning, inspection
generation (Bakker et al., 2014). Proposed product design strategies and sorting, reconditioning and reassembly. Adjacent to practicing
as options for improved material efficiency, i.e. more material ser- remanufacturing and starting from the mid-1990s, the area of
vices with less production and processing, comprise longer-lasting closed-loop supply chains research has matured to a fully
M. Lieder, A. Rashid / Journal of Cleaner Production 115 (2016) 36e51 45

recognized subfield of supply chain management research. In 3.2.6. Governmental CE initiatives


closed-loop supply chains the entire flow of material from suppliers In the past governments and policy makers mainly of the
to manufacturers, distributors, retailers and finally consumer is developed countries have attempted to direct the growing material
considered (forward supply chain) as well as the reverse flows of waste streams back into industry through recycling programs in
used products (reverse supply chain) (Souza, 2013). The combina- order to close the material loop. Sweden, Germany and Japan are
tion of both flows is to a large extent researched from a business frequently named in research as countries that have pushed legis-
perspective in combination with remanufacturing activities in or- lation towards waste reduction and recycling programs. Examples
der to evaluate profitability of reverse supply chains (Guide and are the concept of “extended producer responsibility” (Lindhqvist
Van Wassenhove, 2009). In this context, product return manage- and Lidgren, 1990), the “Closed Substance Cycle and Waste Man-
ment, remanufacturing operations and re-marketing of remanu- agement Act” (German Parliament, 1994) or the movement towards
facturing products have been of immediate interest and basis for a recycling-based society (Ministry of Economy Trade and Industry
operations research models to provide decision support for Japan, 2003), and lately on European level the End-of-Life-Vehicle
industry. Directive (ELV Directive) and the WEEE Directive. In line with the
outlined legislative direction and the steadily increasing amount of
3.2.5. Resource conservative manufacturing directives towards waste minimization the implementation of a
Arguing for a radical shift in the context of closed-loop product circular economy is clearly supported by various EU member states
systems the concept of Resource Conservative Manufacturing (European Commission, 2015a; House of Commons, 2014) and by
(ResCoM) has been introduced as new paradigm for the realization the EC (European Commission, 2012). The EC has published policy
of sustainable manufacturing (Rashid et al., 2013). Since the pre- recommendations in which the movement towards CE is explicitly
vailing business models, products and supply chains have been promoted (European Commission, 2014a). Recommendations are
developed for operating in linear systems, they are unable to cope given to tackle key policy challenges and furthermore aim at cre-
with the dynamics of closed-loop systems. Therefore, a novel ation of jobs and growth, incentive for resource efficiency
approach is proposed in which dynamic interaction among busi- improvement, clear information and measurement of progress,
ness models, product design, supply chains and customers are promotion of new business models. Even a CE roadmap has been
essential and treated simultaneously as integral part of proposed aiming at the main policy objective of creating conditions
manufacturing enterprises. The ResCoM concept includes the idea for the development of CE by addressing barriers and enabling the
of multiple product lifecycles and along with conservation of en- development of new markets (European Commission, 2015b).
ergy, material and added value with waste prevention and envi-
ronmental protection as integrated components of the product
design and development strategy. Studies highlighted that closed- 3.3. Discussion of state of the art research
loop system according to the ResCoM concept are more robust in
terms of operations and faces less uncertainty in terms of timing, As evident from state-of-the-art review in this paper, a growing
quantity and quality of product returns as well as mismatch be- amount of research holds the concept of CE as accepted and desired
tween the supply and demand of product returns in remanu- to be implemented. Assuming lasting interest in the field of CE in
facturing scenarios (Asif et al., 2012). Furthermore system dynamics China as well as in the global research community, it can be ex-
models have been developed to assist decision makers in assessing pected that the number of CE-related research articles will continue
and analyzing the potential gain of product multiple lifecycles growing (Fig. 2).
considering the dynamic relationships of material reserves, supply, Even if research shows that the comprehensive CE perspectives
enterprise's performance and need for adopting product multiple of resource scarcity, environmental impact and economic benefits
lifecycles approach (Asif et al., 2015). (Table 1) are covered two major results can be highlighted:

Fig. 5. A comprehensive CE framework.


46 M. Lieder, A. Rashid / Journal of Cleaner Production 115 (2016) 36e51

 the coverage of the investigated CE research landscape is business models, product design, supply chain design and
fragmented choice of materials.
 the level of discussion is highly granular and rarely touching  Resource scarcity in CE: Social prosperity depends on planet
implementation level earth's finite resource supplies which makes regenerative use of
resources mandatory for CE realization. The underlying factors
Most relevant, analyses and discussions about CE and towards in this context concern circularity of resources, material criti-
CE development is to largest extent done from a resource scarcity cality and volatility of resources in the light of the globally
and environmental impact perspective leaving economic benefits increasing number of industrial activities.
of industrial actors in general and specifically on individual level  Environmental impact in CE: A society with minimum envi-
missing. This shortcoming in the parent CE research landscape is ronmental impacts is a desirable state of nations, governmental
critical considering the fact that essential activities for successful CE bodies and individuals around the globe. CE aims at reducing
implementation, such as business models, product design, supply solid waste, landfill and emissions through activities such as
chain design and choice of material are in control and hence finally reuse, remanufacturing and/or recycling.
determined by manufacturing companies with the underlying
motivation of gaining economic benefits. In this scenario it is Resource scarcity, environmental impact and economic benefits
obvious that a transition towards the CE will not appear favorable cover short-term as well as long-term objectives and are seamlessly
for manufacturing companies since it will be perceived as linked in this CE framework. As each of the three perspectives has a
constraint to industrial activities rather than an opportunity for systemic view with specific boundaries the relationships among
sustainable business and growth. the perspectives need to be described:
There are few research efforts and frameworks that have To gain economic benefits industrial activity fundamentally
included economic benefits or competitive advantages. On opera- depends on resources necessary to perform manufacturing opera-
tional level often these issues are addressed by conventional tions and transform raw materials into products. In return resource
closed-loop supply chains where products are neither designed nor price volatility and supply risks have direct influence on the
manufacture to facilitate loop-closure by intent. Moreover, stake- competitive edge of companies and their capability of performing
holders identified usually remain the governmental bodies their industrial activity in sustainable and profitable manner.
excluding manufacturing industry. At the same time, while pursuing economic benefits, industrial
In summary, the prevailing CE research highlights elements of activity influences the natural environment, as e.g. through waste
the three comprehensive CE perspectives resource scarcity, envi- generation in a linear system. Perceiving end-of-life products as
ronmental impact and economic benefits. However, given the resources rather than waste involves management of resource
aforementioned arguments the current CE research horizon cannot values as part of standard business operations. The approach of
yet be described as comprehensive, thus requiring a framework resource value management stands in contrast to the conventional
necessary to facilitate a successful transition from linear to CE. The “waste management” approach in the prevailing linear economy
comprehensive CE perspectives involve an environment where all and does not differentiate between “waste” and “resources” (as
interests of stakeholders and motivation are equal and where in- nature does not distinguish between these two either). In response
dividual businesses, limitations of natural resources as well as to waste generation and negative influences on the natural envi-
waste and environmental aspects are considered including their ronment industrial activity is restricted by legislation through e.g.
dynamic relationships. directives, thus putting constraints and affecting competitiveness.
However, in this scenario legislation is not a burden.
In a CE the speed of resource depletion and waste generation are
4. A comprehensive framework on CE
reduced. Assuming a rapidly growing population the speed of
resource depletion will be greater in a linear economy than in a CE.
In order to fulfill the lack of framework as previously discussed
Similarly, the speed of waste generation will be higher in a linear
in this paper the CE perspective resource scarcity, environmental
economy than in a CE.
impact and economic benefits emphasize a combined view. Fig. 5
illustrates a comprehensive framework for CE based on these
three perspectives including their relationships. 5. Practical implementation strategy for CE

 Economic benefits in CE: Each individual company strives for Implementation of CE concept is a challenging task given the
gaining economic benefits in order to secure profitability and a prevailing linear mind-set and structures in industry and society.
competitive edge. This requires an integrative approach towards While the benefits for the natural environment are simple to grasp

Fig. 6. Proposed CE implementation strategy applying top-down and bottom-up approach.


M. Lieder, A. Rashid / Journal of Cleaner Production 115 (2016) 36e51 47

and understand, the economic benefits in the context of CE is shift to a tax system of not taxing renewable resources but taxing
more complex to envisage. Despite existing success stories of cir- non-renewable resources instead would accelerate the transition
cular system implementation in industry using case study ap- towards CE. This research work also considers human labor as
proaches (Ellen Macarthur Foundation, 2014) large scale renewable resources hence giving the incentive to increase
implementation needs radical change in the way businesses employment rates in a CE. Further proposals for creating economic
operate and requires commitment from higher management in incentives to facilitate CE transitions are named as tax benefits for
industry. “circular products” as well as a permanently reduced value-added
In order to give a practical way forward on how to implement CE tax rate for recovery activities such as maintenance, repair, reno-
at large scale Fig. 6 suggests a concurrent approach which operates vation, recycling of products.
through public institutions from top-down and through industry Social awareness is crucial for a successful transition from a
from bottom-up. The motive for proposing a concurrent top-down linear economy to a CE as customers are integral part of a CE. The
and bottom-up approach contains the assumption that inverse movement in the area of social awareness is ongoing and educa-
motivations exist among the stakeholders of CE which need to be tional programs, public campaigns as well as seminars have
aligned and converged. Governmental bodies and policy makers increased significantly during the last few years. So far this move-
advocate a collective consciousness about environmental issues as ment has been well supported by the public institutions and
well as societal benefit of industrial activities. Hence, there is a gradually gaining support from the industry as well Efforts of
notion of maximizing environmental benefits by strict control of raising awareness require change in people's mind-set in order to
industrial businesses. On the contrary, manufacturing companies orientate focus on performance of products and their fit-for-use
possess potential awareness about environmental impacts of their rather than thinking in terms of new or second-hand products.
industrial activities. However, due to competitive pressure envi- For manufacturing companies the development of new inno-
ronmental impacts will most likely remain unconsidered as pri- vative business models that fit the CE context is vital. This involves
mary focus is put on economic benefits and growth. Given the re-thinking of partnerships to allow for new collaborative business
scenario that industrial businesses do not see (economic) advan- models. In practice this might mean to incorporate activities such
tages of CE will result in reluctance when it comes to pursuing CE- as remanufacturing, which are generally known to be economically
initiatives. This scenario makes a concurrent process obligatory to beneficial (Atasu et al., 2008) but are currently considered rather as
converge and compromise interests of public institutions (top) and side business, often outsourced and operated by third-party com-
multiple industrials actors (bottom) with the aim to avoid priori- panies. A step in the direction of new partnerships within CE
tization of environmental benefits at the expense of economic context would consequently promote a new perspective on re-
growth and vice versa. Ultimate objective is the achievement of the sources in terms of value management and new business models. In
CE, i.e. an economy which is environmentally and economically this context, descriptive research is already done in the area of
regenerative. Fig. 6 conceptually illustrates the collective nexus sustainable business models (Bocken et al., 2014). Furthermore, the
which stands for convergence of all relevant stakeholders. implementation PSS business models is gaining attention (Tukker,
The feasibility of this CE implementation strategy is related to 2013). As PSS enables the sale of functionality rather than owner-
the following areas which are supportive in highlighting future ship the establishment of resource conservative business models
research. can be facilitated.
Re-thinking of business models for a CE is connected to
Top-Down: product design as well as forward and reverse supply chains in
 Legislation and policy order to reach and maintain operational efficiency. Hence,
 Support infrastructure products need to be designed with the awareness of CE with
 Social awareness multiple usage phases. This also requires economically feasible
value recovery activities as part of efficient closed-loop supply
Bottom-Up: chains. In addition, ICT offers potential as significant enabler on
 Collaborative business models e.g. company level through product lifecycle management sys-
 Product design tems and monitoring of products and parts in multiple lifecycles.
 Supply chain These developments are capable of recapturing, recovering and
 Information and communication technology (ICT) reusing processes across successive product lifecycles through
concepts as product passport, i.e. “a set of information about the
As part of support infrastructure, which materializes the bene- components and materials that a product contains, and how they
fits of policy and legislation, approaches or policy initiatives to can be disassembled and recycled at the end of the product's
instigate CE movements seem missing around the globe. This is useful life” (European Commission, 2013). Integrative approaches
confirmed by an examination of governments in the light of CE of business models, product design and supply chain and product
(Dutch Sustainability Business Association, 2015) which resulted in lifecycle management are meanwhile discussed and approached
a report highlighting the lack of comprehensive approaches of in research, thus promoting the concept of multiple product
governments that support CE transitions. This is even the case lifecycles (ResCoM consortium, 2013).
despite large benefits that are predicted for all areas around the
globe considering CE scenarios. Present arguments used by public 6. Conclusions
institutions for moving towards CE are provided from a resource
scarcity, environmental impact but also future job and competi- Based on the review and analysis of prevailing research in the
tiveness perspective (European Commission, 2014a). Suggestions context of CE, this paper concludes that CE relevant research has
are given on a business-to-business level such as the concept of the been and is an active area. However, it has evolved primarily as
product passport, network of industrial symbiosis initiatives or research on waste generation, resource use and environmental
sustainable sourcing standards. Governmentally funded research impact while neglecting business and economic perspectives. This
emphasizes to largest extent environmental impacts (Zhao et al., neglect poses the risk of inhibiting CE implementation since ad-
2006). Research work has also been done in the area of taxation vantages for industry are inexplicit. Only a comprehensive frame-
in the context of CE (Stahel, 2013). The research emphasizes that a work unique to the concept of CE that is jointly supported by all
48 M. Lieder, A. Rashid / Journal of Cleaner Production 115 (2016) 36e51

stakeholders is able to support successful CE implementation. This References


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