circular economy vs linear economy
*, Copyright by Stiftung Entrepreneurship © 2020. Business Modeling for Sustainability: Identifying five modeling principles and demonstrating their role and function in an explorative case study. A circular economy is fundamentally different from a linear economy. How Circular is the Global Economy? Korhonen, J., Honkasalo, A., & SeppÃ¤lÃ¤, J. Leerresultaten van een groep inkopers. Delft: TU Delft Library. (2006). (2014). Waterschap Vallei en Veluwe. Manu, E., Ankrah, N. A., Hammond, F., Wood, P., Baffour-Awuah, K., & Hingorani, N. (2014). The best approach the linear approach. Plastic Soup Foundation. Money makes the World Go Round: and wil it help to make the economy circular as well? Growth within: a circular economy vision for a competitive Europe. Decoupling Natural Resource Use and Environmental Impacts from Economic Growth. UNEP. (2018). Retrieved from http://www.ex-tax.com/files/4314/1693/7138/The_Extax_Project_New_Era_New_Plan_report.pdf. Circular Economy Guide – Wegwijzer Circulair Ondernemen. Renswoude, van , Wolde, ten & Joustra. (2012). Circular economy is an alternative to the traditional linear economic model where resources are kept in use for as long as possible, maximum value is extracted from them, and waste is relocated from the end of the supply chain to the beginning, giving the used materials a new life. What are the environmental benefits of the circular economy? An introductory note on the environmental economics of the circular economy. The Performance Economy (2nd ed.). (2014). (2007). Figure 2: the difference between eco-effectiveness and eco-efficiency (EPEA GmbH, 2013). (2017). Delivering the Circular Economy: A Toolkit for Policymakers. (2018). Designing for a circular Economy: The conceptual design of a circular mobile device. According to Gartner, Inc., by 2029, the circular economy will be the only economy, replacing wasteful linear economies. Retrieved from http://www.greendeals.nl/wp-content/uploads/2015/06/GD159-inspiratiekaart-Circulair-Inkopen.pdf. Circular business models contribute to a circular economy by adhering to the circular economy’s three fundamental principles.. Design out waste and pollution; Keep products and materials in use (2019).Â Versnellingshuis Nederland circulair! Pingback: Building a circular economy, one smartphone at a time | green alliance blog. Advies over een Raamwerk voor Impactmeting voor Circulair Inkopen, (SEPTEMBER 2014), 1â20. ABN AMRO. (2014). 2015, Kjaer, Pigosso, Niero, Bech & McAloone, 2019. 2019). Unleashing the Power of the Circular Economy. (2019).Â About the company.Â Website. What is collaboration in the value chain? (2014). Groothuis, F. (2014). Het Groene Brein. Products that last- Product design for circular business models. Het inkoopvolume van de Nederlandse overheid. (2015).Â The triple layered business model canvas: a tool to design more sustainable business models. Wat is de definitie van circulaire economie? Linear vs circular economy - Duration: 2:22. Leerresultaten van een groep inkopers. (2016). Circular economy as an essentially contested concept. The circular economy is defined as an industrial system that is restorative and regenerative by intention and design. Het Groene Brein, P+ People Planet Profit & Duurzaam Door. Master Circular Business with the Value Hill, 1â16. Milgro. Elsevier. (2013). (2019).Â Toekomstgericht curriculum. Ellen MacArthur Foundation. Direct access to the publications is provided via the clickable literature list. Whereas a linear economy will only damage the environment further, a circular economy will decrease the impact of production and consumption in the UK, significantly reduce waste and will lessen the pressure on the country’s d angerously low natural resources. How do we make the economic sectors circular? Retrieved from http://www.satw.ch/publikationen/schriften/kreislaufwirtschaft/a__circulareconomy_with_references_EN.pdf. (2019a). Clavreul, Butnar, Rubio & King (2017)Â Intra- and inter-year variability of agricultural carbon footprints â A case study on field-grown tomatoes. Ecological Economics, 143, 37-46. It is a regenerative economic model aimed at minimising waste and maximising resources. VANG (2016). Circular economy vs. linear economy 13 August, 2019 In a previous blog post we discussed the principles of the circular economy and in this post we will compare the circular economy to the linear economy, going on to discuss the advantages of the former model. How do we make consumption goods circular? Retrieved from http://www.degroenezaak.com/upload/documents/WP Nieuwe Business Modellen Jan Jonker e.a.pdf. MVO Nederland. (2011) Re-thinking Progress: The Circular Economy. In a circular economy, we close the cycles of all these raw materials. (2018). PBL. Plan C (2013), Business Model Innovation Grid, http://www.plan-c.eu/bmix/, Plan C. (2014). Kraaijenhagen, C., Van Oppen, C., & Bocken, N. (2016). Circulair inkopen in 8 stappen. (1st ed.). (2018). Journal of Industrial Ecology, 23(1), 22-35. Bocken, N. M. P., Bakker, C., & Pauw, I. Retrieved from https://www.pianoo.nl/sites/default/files/documents/documents/kadercirculairinkopen-20april2015.pdf. 340â346). How do we make the energy sector circular? Ellen MacArthur Foundation. DEFRA. Kamerbrief met kabinetsreactie op de transitieagenda’s circulaire economie. 2015, Swiss Academies of Arts and Sciences, 2014, Vermeulen, W. J. V, Witjes, & Reike, (2014). Barriers & Drivers towards a Circular Economy. Leren voor Morgen. Circle Economy. be defined relative to a traditional linear economic system, i.e. https://doi.org/10.2779/29525, European Comission. Ministerie voor Infrastructuur en Waterstaat. The Valuation Tool User Guide: Monetizing Cradle to Cradle. What are the disadvantages of the current linear economy? (C. Bernasco & L. Goodchild-Van Hilten, Eds.) (2014). The perspective on sustainability is different in a circular economy than in a linear economy. It is restorative and regenerative by design and aims to keep products, components, and materials at their highest utility and value at all times. Report by IMSA Amsterdam for Circle Economy. Two economic models that are miles apart. (2019).Â Wat is de plastic soep.Â Website. In Handbook of Recycling (pp. Business Model Concepts in Corporate Sustainability Contexts: From Rhetoric to a Generic Template forâBusiness Models for Sustainabilityâ. Product/Service-Systems for a Circular Economy: The Route to Decoupling Economic Growth from Resource Consumption? Manu, Ankrah, Hammond, Wood,Baffour-Awuah, & Hingorani. An alternative model for economic development., 7. De. How do we use biomass and food circularly? Ministerie van Economische Zaken. Materiaalmonitor 2016 â Technische toelichting. Journal of Cleaner Production, 175, 544-552. EVER-DECREASING CIRCLES: closing in on the circle economy. Upcycling, cascading and high grade recycling. Chart. Circular economy is better to the environment, linear economy consists on buy something, use it and throw it out. Sustainable innovation, business models and economic performance: an overview. Plastic Pact. (2004). Ministerie van Onderwijs, Cultuur en Wetenschap. (2016). Peelpioneers. Circle Economy, PGGM, KPMG, EBRD, & WBCSD. Bocken, Bakker & De Pauw, 2015; Ellen MacArthur Foundation, 2014. Going for growth: A pratical route to a circular economy. (2018). This means that other business models are also used in a circular economy, with more emphasis on services rather than products. Gartner defines the circular economy as an economic model that separates the ability to achieve economic growth from the consumption of natural resources. Fiscal Reforms For An Inclusive, Circular Economy. Squaring the Circular Economy: the role of recycling within a hierarchy of Material Management Strategies. In dit artikel lichten we deze definitie verder toe. Retrieved from http://mvonederland.nl/wegwijzer-circulair-inkopen-0#tab=pane-title-step-1. Business Models, Business Strategy and Innovation. Campus members I believe one can pick up the idea of sensitizing people about the issue of recycle and use. Product design and business model strategies for a circular economy. Upon visiting the existing literature on the subject of linear vs. circular economy, this paper finds that, the blueprint of the current economy is hardly sustainable by using the comparative benchmarking method that drained from literature. (2014). (2014). (2014). Unie van Waterschappen. Closing the loop New circular economy package. Hoe doe je dat in de praktijk? An Introduction to Social-Ecological Research, 1â20. This will extend the period in which the system becomes overloaded (Di Maio, Rem, BaldÃ¯, and Polder, 2017). In a linear economy, the different between cost of production and sale price is the basis of the creation of value. A circular economy (also referred to as "circularity") is an economic system aimed at eliminating waste and the continual use of resources. Centre for Sustainability. A circular economy is a systemic approach to economic development designed to benefit businesses, society, and the environment. Reflectie op Van Afval Naar Grondstof ( VANG ). This means that raw materials are collected, and then transformed into products that are used until they are finally discarded as waste. The linear model bases on using new raw materials while the circular model seeks to avoid that. The circular economy that aims for the elimination of waste through the design of products, and business models. Shaping the Circular Economy. (2013). Conversely, a circular economy is one where it’s not a start-to-finish process but is a continuous cycle. In a circular economy, this is the focus. This is to minimise the ecological impact for the same output. The knowledge map is a product of the Dutch acceleratorÂ Versnellingshuis Nederland circulair! As a result, the value is fully retained or even increased. (2011). Value is created in this economic system by producing and selling as many products as possible. Romero-HernÃ¡ndez & Romero (2018)Â Maximizing the value of waste: From waste management to the circular economy. Linear economy vs circular economy. The simplest way to depict a circular economy is to contrast it with a linear economy. (2014). The Circularity Gap Report 2019, City of Amsterdam. 2:22. Pingback: Our best reads of 2015 | green alliance blog. (2018a). Sustainability Science, 2(1), 133â140. Ministerie van Infrastructuur en Waterstaat. Green Deal. PianOo, UNEP. Instead of your box going to landfill, companies recycle it into something else – like another box! Walmart. Retrieved from http://www.palgraveconnect.com/pc/doifinder/view/10.1057/9780230274907. In contrast to the ‘take-make-waste’ linear model, a circular economy is regenerative by design and aims to gradually decouple growth from the consumption of finite resources. By using this form you agree with the storage and handling of your data by this website. A widespread example of a product-service combination is the Xerox printer system, in which companies receive a printer free of charge and pay per copy. (2017). SYKE, (2018). How does financial risk change with a circular business model? (2018). Retrieved from http://www.esauk.org/esa_reports/Circular_Economy_Report_FINAL_High_Res_For_Release.pdf, European Commission. The raw materials are transformed into a product that is recycled when it ends its life cycle into a new product, but after that stage, it is thrown away. (2018). Per question, a short summary is provided, with more comprehensive answers below. 2014, ï»¿Bastein, Roelofs, Rietveld, & Hoogendoorn. – Een onderzoek naar de knelpunten en succesfactoren bij het toepassen van circulair inkopen in de praktijk. Wat zijn de nadelen van de huidige lineaire economie? In this way, the ecological, economic and social impact of the same production of ‘beef’ is increased. (2012). Journal of Cleaner Production, 45, 1â8. The circular economy â a powerful force for climate mitigation. (2010). Retrieved from http://scholar.google.com/scholar?hl=en&btnG=Search&q=intitle:Unleashing+the+Power+of+the+Circular+Economy#2, Kok., L., Wurpel, G. & Ten Wolde, A. Cradle to Cradle inkopen? Deze aanpak komt echter steeds meer onder […]. 445â477). CBS, 2019. Circular economy is an eco-friendly way of economy, in which we recycle the things we won´t use. Korhonen, J., Nuur, C., Feldmann, A., & Birkie, S. (2018). Iles, J. This is different in a linear economy. Ellen Macarthur Foundation. (2014). This sustainable economic approach uses a ‘repair, reuse, recycle’ model of production - which is in stark contrast to the traditional linear model of ‘take, make, dispose’. (2018a). Deze mentaliteit is gebaseerd op de winning van hulpbronnen, de productie van goederen en diensten en de verwijdering van afval na het einde van het gebruik. Hoe doe je dat in de praktijk? In this system, value is created by focusing on value preservation. Retrieved from https://www.ing.nl/media/ING_EZB_Financing-the-Circular-Economy_tcm162-84762.pdf. How does circularity relate to sustainability? In a previous blog post we discussed the principles of the circular economy and in this post we will compare the circular economy to the linear economy, going on to discuss the advantages of the former model. Nederland Circulair! A future the planet can accommodate. Journal of Cleaner Production, 65, 42â56. How is a circular economy different from a linear economy? What are the benefits for The Netherlands? Circular systems employ reuse, sharing, repair, refurbishment, remanufacturing and recycling to create a closed-loop system, minimising the use of resource inputs and the creation of waste, pollution and carbon emissions. Genovese, A., Acquaye, A. Van Eijk, F. (2015). (2012). (2018a) Report on critical raw materials and the circular economy. RSA. Logistiek in een circulaire economie. Circular Business –Â Collaborate and Circulate. Circular Economy. Linear economy The differences between linear and circular economy are quite significant. Teece, D. J. Working Group FinanCE. Kok, L., Wurpel, G., & Wolde, A. A circular economy is an industrial system that is restorative or regenerative by intention and design. UNEP. Vermunt, (2019). (2013). Sitra. Resource use is minimized (reduce). In the linear sales system, the manufacturer often benefits if the product breaks down quickly so that it can sell a new product. (2019). Circular economy vs. Copper 8. Resilience in the Round: Seizing the growth opportunities of a circular economy. Definition of Linear Economy: A linear economy traditionally follows the “take-make-dispose” step-by-step plan. Photo by anouar olh from Pexels The scapegoats of linearity. (2019). A., Figueroa, A., Koh,Â S.C. L.,Â Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications,Â Omega,Â Volume 66, Part B,Â 2017,Â Pages 344-357. Korhonen, J., Nuur, C., Feldmann, A., & Birkie, S. (2018). In this type of economy, products last only a short time. Cradle to cradle Loont! Circular knowledge networks and platforms. Towards the Circular Economy: Accelerating the scale-up accross global supply chains. Pingback: Only a circular economy can save the world - Live Circular. Retrieved from https://www.ser.nl/~/media/db_adviezen/2010_2019/2016/circulaire-economie.ashx, Stahel, W. (2010). An example of a model that facilitates the transition to the circular economy is a product-service combination (Product-As-A-Service System), which is seen as a model to integrate products and services (Michelini, Moraes & Cunha et al., 2017). Resources , Conservation & Recycling Conceptualizing the circular economyâ¯: An analysis of 114 definitions, 127(April), 221â232. (2018). Circular Economy. Retrieved from http://www.unep.org/chinese/documents/final_circulareconomy_wholedoc.pdf. PBL. Ellen MacArtur Foundation. ING Economics department. https://doi.org/10.1007/s11625-006-0013-6. Circulair Ondernemen? – 50 best practices. Bocken, N. M. P., Short, S. W., Rana, P., & Evans, S. (2014). Business Model Innovation Grid. Closing these cycles requires much more … Austerlitz. Jonker, J., & Dentchev, N. (2013). Van Afval Naar Grondstof – Uitwerking van acht operationele doelstellingen. (2014c). (2016). Circular economy is a manifestation of economic models that highlight business opportunities where cycles rather than linear processes, dominate. (2014). Reply. Opportunities for a circular economy. Supply Value. Bastein, T., Roelofs, E., Rietveld, E., & Hoogendoorn, A. The aim of this Knowledge Map Circular Economy is to present an overview of the present-day knowledge on circular economy issues. Master circular business with the value hill. Korhonen, J., Honkasalo, A., & SeppÃ¤lÃ¤, J. When working on sustainability within a linear economy, the focus is on eco-efficiency. In a circular economy, we close the cycles of all these raw materials. A circular economy follows the 3R approach: reduce, reuse and recycle. BMA ergonomics.Â (2019). (2015). Retrieved from http://aisel.aisnet.org/cgi/viewcontent.cgi?article=3016&context=cais, Padding, T., Croon, G., Haastrecht, D. Van, & Dijkstra, R. (2015). Mentink, B. WBCSD. Share of raw material costs in total production costs, PBL Netherlands Environmental Assessment Agency (2014). Vanderlande. Raising cows for beef results in emissions of methane gas, a strong greenhouse gas. New Plan. (2018).Â Curriculum.nu: Feedbackronde 3. (2010). Seville, Spain. Circular economy as an essentially contested concept. Bakker, den Hollander, van Hinte, & Zijlstra. International Resource Panel. A Linear Economy vs a Circular Economy: Unpacking the differences In order to grasp the concept of a Circular Economy it's important to fully understand the system, we are currently locked in with. It changes the way in which value is created and preserved, how production is made more sustainable and which business models are used. Nieuwe Business Modellen: E en exploratief onderzoek naar veranderende transacties die meervoudige waarde creÃ«ren (Duurzaam Organiseren). Value is created in this economic system by producing and selling as many products as possible. (2018). Circle Economy, PGGM, KPMG, EBRD, & WBCSD. In this knowledge map, publications up toÂ January 2020Â have been included. Auping. Its essence is to design products with no waste products that facilitate disassembly and reuse. Linear business models are based on the following logic: take natural resources, make products for consumers that eventually become waste. Circle Economy & Sustainable Finance Lab. Rood, T. & Hanemaaijer, A. Journal of Industrial Ecology, 0(0), n/a-n/a. (2011). Retrieved from www.amsterdam.nl/duurzaam, CIWM. Towards the Amsterdam Circular Economy. Circulaire bureaustoelen. Pianoo. Scotland: Making Things Last – A Circular Economy Strategy. If you wish to buy it, please click, https://www.entrepreneurship-campus.org/ideas/22/16245, By subscribing I have accepted the privacy rules of this site. What else is there in a circular economy? Poppelaars, F. (2014). Then it’s used again. Technical University Delft. Product/Service-Systems for a Circular Economy: The Route to Decoupling Economic Growth from Resource Consumption? This makes production more eco-efficient. With this in mind, in 2015 the EU adopted the Action Plan for the Circular Economy, which aims at sustainable growth in the European Union and stimulates Europe’s transition to a circular economy. Retrieved fromÂ http://mvonederland.nl/system/files/media/unleashing_the_power_of_the_circular_economy-circle_economy.pdf. (2015). Haas, W., Krausmann, F., Wiedenhofer, D., & Heinz, M. (2015). What does primary and secondary education do? (2019). Rood, T., & Hanemaaijer, A. (2019).Â Hergebruik grondstoffen. A linear economy traditionally follows the “take-make-dispose” step-by-step plan. Beleidskader Circulaire Economie. (2015). A second, slightly broader, view of the circular economy stresses the importance of slower material flows, either within an economy with some degree of material circularity, or within one that is more linear. Haalbaarheid Grondstoffenlabel. BarriÃ¨res doorbreken. Retrieved November 28, 2016, from http://www.plan-c.eu/bmix/. – KatieLovesEarth. Waternet. An eco-efficient system typically works on downcycling: a (part of a) product is reused for a low-grade application that reduces the value of the material and makes it difficult to reuse the material flow again. C2C Bizz. This highlights the trend for a circular economy, characterized by restoration and circularity of product components. https://doi.org/10.13140/2.1.2270.2086. Circular Business Models. Vermeulen, W. J. V, Witjes, I. S., & Reike, D. (2014). Retrieved from https://www.rijksoverheid.nl/documenten/rapporten/2014/01/28/van-afval-naar-grondstof-uitwerking-van-acht-operationele-doelstellingen, Rijksoverheid. (2017). Circulaire economie: wat we willen weten en kunnen meten. (2015). (2019). Afval bestaat niet! Ten. A circular economy is fundamentally different from a linear economy. Pingback: Hello and Welcome! Een kader voor circulair inkopen. (2016). Intelligent Assets: Unlocking the Circular Economy Potential. A circular economy feeds back into its own development and thus closes the loop. What is the circular economy? (2015). This means that not only the ecological impact is minimized, but that the ecological, economic and social impact is even positive (Kjaer, Pigosso et al. Palgrave Macmillan. Circular consumption in the linear economy: only a drop in the ocean? (2019).Â Auping wint circular award business 2019. Onderweg naar Zero Waste met Royal FloraHolland. Europese Commissie. What Is Resilience? In order to achieve eco-effectiveness, residual flows must be reused for a function that is the same (functional recycling) or even higher (upcycling) than the original function of the material. (2013). gelanceerd. How do you make your business model financeable? Retrieved from http://www.greatrecovery.org.uk/resources/the-great-recovery-report/, RVO. The Bare Necessities Zero Waste Store 1,476 views. Jonker, J., Tap, M., & Straaten, T. van. What contribution can the government make itself? Towards the Circular Economy: Economic and buisiness rationale for an accelerated transition. Retrieved from https://www.chathamhouse.org/sites/files/chathamhouse/public/Research/Energy, Environment and Development/bp0312_preston.pdf. The Terrace. Nederland Circulair. InÂ Proceedings for the 8th Europen Conference on Innovation and Entrepreneurship: ECIE 2013.Â (pp. Prosperity Without Growth: Economics for a Finite Planet. The Cradle to Cradle inkopen? Long Range Planning, 43(2â3), 172â194. Promoting it means detecting new solutions and business opportunities that require a public-private partnership to promote the eco-design of products, improving the efficiency of advanced … Retrieved from http://ec.europa.eu/environment/circular-economy/index_en.htm. But I do not know happy many of us know about this. How do materials circulate in a circular economy? This difference can be illustrated with the production of beef. Retrieved from http://www.ciwm-journal.co.uk/downloads/CIWM_Circular_Economy_Report-FULL_FINAL_Oct_2014.pdf. (2005). (2018a). European Commission. Retrieved from https://www.abnamro.com/nl/images/Documents/040_Duurzaamheid/Publications/ABN_AMRO_Circular_Economy_Guide.pdf. Kirchherr, J., Reike, D., & Hekkert, M. (2017). Bakker, C. A., den Hollander, M. C., van Hinte, E., & Zijlstra, Y. WE Forum.Â (2017) Towards the Circular Economy: Accelerating the scale-up across global supply chains. Ruim â¬ 100 miljoen aan circulaire inkoopkracht in nieuwe Green Deal Circulair Inkopen. Accenture. (2005). What happens now is that we extract raw materials and use them to make products. (2019).Â Sofas showcase circular opportunities. Circular business Model Innovation. (2015). Allwood, J. M. (2014). Kjaer, L., Pigosso, D., Niero, M., Bech, N., & McAloone, T. (2019). With lineal economy we produce a lot of pollution and and we can cause very serious damage to the environment. Fiscale vergroening:Â belastingverschuivingÂ van arbeid naarÂ grondstoffen,Â materialen en afval. Products can also be converted into services, such as Spotify sells listening licences instead of CDs. Now that we’ve taken a look at the linear economy, let’s take a look at the circular economy. Preston, F. (2012). Circular Awards 2018. (2016). To put it simply, in a linear economy we mine raw materials that we process into a product that is thrown away after use. New Era. Kansen voor de circulaire economie in Nederland. (2018).Â Kamerbrief met kabinetsreactie op de transitieagenda’s circulaire economie. Resource Efficiency: Potential and Economic Implications.Â. Clarifying business models: Origins, present, and future of the concept. Swiss Academies of Arts and Sciences. (2019). (2014). For example: concrete residues are processed in asphalt in the road surface (Bocken, Bakker & De Pauw, 2015; Ellen MacArthur Foundation, 2014). Joyce, Paquin, & Pigneur. PBL. Re-thinking Progress: The Circular Economy. The model adds a new link to the linear economy approach. (2018). What is the definition of a circular economy? Environmental benefits of the Dutch acceleratorÂ Versnellingshuis Nederland circulair huidige lineaire economie damage to environment. Economy vision for circular economy vs linear economy competitive Europe Rietveld, E., & Straaten, T.,,. Chain approach they are finally discarded as waste products as possible vergroening: belastingverschuivingÂ... Design: creating healthy emissions â a strategy for eco-effective product and system design all these raw.. 12-14 April management sector be done by using goods with more comprehensive answers below each in. Example: concrete is ground into granules that are used and thus closes the open loop that the economy. 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A pratical Route to Decoupling economic growth from Resource consumption my name, email and.
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