| Title | Modelling the circular economy: Introducing a supply chain equilibrium approach |
|---|---|
| ID_Doc | 2732 |
| Authors | Lahcen, B; Eyckmans, J; Rousseau, S; Dams, Y; Brusselaers, J |
| Title | Modelling the circular economy: Introducing a supply chain equilibrium approach |
| Year | 2022 |
| Published | |
| Abstract | The circular economy (CE) has gained prominence in recent years in government and business policies, as well as academic research. Yet, its alleged wholesomeness is increasingly questioned and few quantitative studies include both the outer (e.g. recycling) and inner circles (e.g. reduce or reuse), respectively the ex-ante least and most efficient CE strategies. By developing a supply chain equilibrium model, based on general equilibrium theory, this paper presents a modelling framework where a product-service system is introduced as a circular alternative to conventional products. Through generalised prices that cover inner and outer circle variables, targeted economic and fiscal policy measures affect overall price levels and, by consequence, operational levels of the supply chain. The rationale behind this approach relies on combining material and economic efficiency by integrating material/product life cycles with market interactions. To illustrate its performance, the model examines the rollout of a reusable plastic bottle initiative in Belgium. The results show that if circular products are perceived as substitutes for conventional products, well-targeted policies can reduce material use substantially. Furthermore, coordinating circular policies along the supply chain can improve their outcomes. However, the absence of CE data impedes model development and risks undermining the validity of the results. |
Similar Articles
| ID | Score | Article |
|---|---|---|
28971
|
Lahcen, B; Eyckmans, J; Brusselaers, J Linking methodologies to assess climate impacts and circular economy strategies along supply chains(2024) | |
| 147
|
Bartoszczuk, P Circular Economy And Its Restriction(2023)Ekonomia I Srodowisko-Economics And Environment, 86, 3 | |
| 3922
|
Mhatre, P; Panchal, R; Singh, A; Bibyan, S A systematic literature review on the circular economy initiatives in the European Union(2021) | |
| 1103
|
Govindan, K; Hasanagic, M A systematic review on drivers, barriers, and practices towards circular economy: a supply chain perspective(2018)International Journal Of Production Research, 56, 1-2 | |
| 656
|
Hartley, K; Schülzchen, S; Bakker, CA; Kirchherr, J A policy framework for the circular economy: Lessons from the EU(2023) | |
| 27120
|
Gunasekara, L; Robb, DJ; Zhang, ABH Used product acquisition, sorting and disposition for circular supply chains: Literature review and research directions(2023) | |
| 1180
|
Upadhyay, A; Kumar, A; Akter, S An analysis of UK retailers' initiatives towards circular economy transition and policy-driven directions(2022)Clean Technologies And Environmental Policy, 24, 4 | |
| 28584
|
Amico, C; Cigolini, R; Brambilla, M Transitioning the apparel supply chain to circular economy: a quantitative approach(2023) | |
| 246
|
Aminoff, A; Kettunen, O Sustainable Supply Chain Management in a Circular Economy-Towards Supply Circles(2016) | |
| 721
|
Burchart-Korol, D; Czaplicka-Kolarz, K; Kruczek, M The Benefits Of Integration Of Circular Economy In Supply Chain Management(2016) |