The Circular Economy and Planned Sustainability

Abstract

In the search for sustainability, various attempts have been made to integrate the economy with the environment to create “win-win” solutions. One such attempt has been the promotion of a circular economy where the existing linear economy of “take-make-dispose,” with raw materials at one end and wastes at the other, is replaced by a system of closed loops of materials and energy which also eliminates wastes by turning these into new inputs. Circular economy concepts draw upon a range of past approaches including 3R principles (reduction, reuse, and recycling), product-service systems, cradle-to-cradle design, the sharing economy, industrial ecology, and industrial symbiosis. However, the circular economy is presented as a more holistic approach that can decouple economic growth from increasing resource use, promote waste reduction or minimization, and reduce environmental degradation. Circular economy ideas have gained traction within business and among policy makers, particularly in the European Union (EU) and in China. This chapter outlines the evolution of circular economy concepts, explores various definitions, and outlines contrasting policy developments in the EU and China. Despite enthusiasm for the circular economy, it has been criticized for its assumption that the substantial changes involved can be accommodated within existing economic structures and modes of governance. A lack of conceptual clarity and definition leaves the circular economy open to interpretative flexibility and use by different groups of actors to support and promote their own interpretation.