Us Before Me: A Group Level Approach to the Circular Economy

Posted: 4 Nov 2020

See all articles by Frank Figge

Frank Figge

KEDGE Business School

Andrea Thorpe

KEDGE Business School

Jason Good

affiliation not provided to SSRN

Date Written: November 4, 2020

Abstract

A more efficient use of natural resources is considered a necessary condition for their sustainable use. When firms use resources circularly they aim to contribute to using resources more eco-efficiently, and thus in a more sustainable way than when adopting more linear systems. Eco-efficiency in linear systems can be determined by aggregating each individual instance of resource use. However, in circular systems this approach is problematic, as it cannot capture the dynamics of resource use that unfurl between firms that contribute to eco-efficiency. In other words, we argue that in circular systems, eco-efficiency overall is more than the sum of the eco-efficiencies of individual firms. Moreover, we counterintuitively suggest that within circular economy systems, selecting only highly eco-efficient firms can actually reduce rather than increase the degree of eco-efficiency overall. Using a lens of multi-level selection theory, we build our argument through a series of numerical examples, and in conclusion show how the assessment and management of resources must be moved from the individual to the group level.

Keywords: Circular Economy, Eco-Efficiency, Evolution, Cooperation

Suggested Citation

Figge, Frank and Thorpe, Andrea Stevenson and Good, Jason, Us Before Me: A Group Level Approach to the Circular Economy (November 4, 2020). Ecological Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3694354

Frank Figge (Contact Author)

KEDGE Business School ( email )

Domaine de Luminy
BP 921 13288 Marseille Cedex 9, 13288
France

Andrea Stevenson Thorpe

KEDGE Business School ( email )

Domaine de Luminy - BP 921
BP 921
Marseille, PACA 13288
France

Jason Good

affiliation not provided to SSRN

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