Closing the Loop for Resource Efficiency, Sustainable Consumption and Production: A Critical Review of the Circular Economy

Abstract

The circular economy proposition is not a novel concept. However, it has recently stimulated sustainable consumption and production ideas on remanufacturing, refurbishing and recycling of materials. A thorough literature review suggests that the circular economy’s regenerative systems are intended to minimise industrial waste, emissions, and energy leakages through the creation of long-lasting designs that improve resource efficiencies. In this light, this research critically analyses the circular economy’s closed loop systems. The findings suggest that this sustainable development model could unleash a new wave of operational improvements and enhanced productivity levels through waste management and the responsible use and reuse of materials in business and industry. In conclusion, this research implies that closed loop and product service systems could result in significant efficiencies in sustainable consumption and production of resources.

Keywords: Circular Economy, Resource Efficiency, Corporate Sustainability, Creating Shared Value, Corporate Social Responsibility, Strategic CSR, Stakeholder Engagement, Social Responsibility, Recycling Resources, Reusing Resources, Restoring Resources, Reducing Resources

JEL Classification: M0, M1, M10, M11, M14, M16, M30, M31, Q0, Q2, Q4, Q5, L1, L5, L6