What is the Circular Economy? The circular economy: from consumer 3 months ago   01:01

California Management Review
The circular economy is a new paradigm of industrial organization that could eliminate 100 million tons of waste globally in the next five years alone.

Learn more: http://cmr.berkeley.edu/browse/articles/60_3/

In a circular economy, materials are reused as much as possible. And new business models can promote resource efficiency by maximizing the value of what we already produce.

There are five major characteristics of a circular economy:

1. Circular supply chain. All products should be designed to use fully recyclable or biodegradable materials.

2. Recovery and recycling. All waste byproducts should be optimized for revenue potential.

3. Build products to last. Discourage replacement of products by using durable materials, and offering to refurbish, refill, or repair.

4. Sharing platform. Let multiple customers use the same resources. Most cars sit idle for 92% of the time. Ride sharing is more efficient than individual ownership.

5. Product-as-a-Service model: Companies can be incentivized to consider longer product lifecycles by leasing products, instead of selling them. Michelin now sells tires as a service, where customers pay by miles driven.

Based on the article "Introducing a Circular Economy: New Thinking with New Managerial and Policy Implications" by Mark Esposito, Terence Tse, and Khaled Soufani

For more information, please read California Management Review's special issue on the Circular Economy (Volume 60, Issue 3)

Volume 60, Issue 3


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The circular economy: from consumer What is the Circular Economy? 3 months ago   03:12

With the price of resources and energy becoming increasingly volatile, can today's linear economy work in the long term?

What if we didn't buy the goods we use, but instead favoured access and performance over ownership? This short animation from the Ellen MacArthur Foundation introduced the idea, and suggests how it could work for businesses, users, and the wider economy.

A performance model is part of the solution when making the transition to a regenerative circular economy.

Watch an introduction to the circular economy: https://up-tube.com/upvideo/mPEXiQllUzV

Find out more about the circular economy at http://www.ellenmacarthurfoundation.org and http://www.facebook.com/EllenMacArthurFoundation and follow us on Twitter http://twitter.com/#!/circulareconomy

Animation produced by Beakus
Director Mr Binns