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Key Concepts behind Circular Economy

Category: Economics Paper Type: Report Writing Reference: APA Words: 900

In this section key concepts behind circular (CE) are presented in detail. According to 9R model linear economy and circular economy (CE) is quite a different concept which is usually considered as the same concepts in any organization. Circular economy (CE) relates to the linear economy because both are concerned with the elimination of waste through different methods and ways. However, the circular economy (CE) is an advanced stage or increased circularity which cover some concepts and strategies that are not covered by the linear economy(Arthur, 2018).In general, the linear economy is about the useful application of materials by focusing on recycling and recovery. While on the other hand, the circular economy (CE) is about the use of smarter products manufacturing practices. Circular economy (CE) focuses on refuse, rethink, and reduce. In a linear economy, companies generate products for use and recycle those products after use. For instance, the production of plastic bags with plastic and burning it out after use. However, the circular economy (CE) is about reduced and rethink under which companies make products with biodegradable materials and eliminate the use of unnecessary materials and products. For instance, manufacturing of shopping bags with biodegradable materials. Following is the details about the 9R model.


Source:https://www.researchgate.net/profile/Julian_Kirchherr/publication/320074659/figure/fig1/AS:553024483074048@1508862719260/The-9R-Framework-Source-Adapted-from-Potting-et-al-2017-p5.png

Some important concepts related to a circular economy (CE) are enlisted below:

·         Recycle: In this concept, industries are required to re-utilize their waste and disposed of materials by ensuring the reproduction of the new product. In this process, energy and water play an important role by supporting the conversion of materials in a new product. In this process, sometimes recycled material keep lower value and sometimes value remains same after recycling. Value increase or decrease directly depends upon the materials(credoreference, 2019).

·         Down-cycle: In this down cycle concept, industries follow up the circular economy (CE) and recycle high value materials to get something low value in return. The process of recycling under this concept reduces the value of material or product, therefore, it is known as the down-cycle concept of circular economy (CE). A fine example of down-cycle is the conversion of the high-quality printer and writing papers into a lower value cardboard paper(Arthur, 2018).

·         Up-cycle: Up-cycle concept is quite opposite to the down-cycle concept. Industries sometimes produce high quality and innovative product from disposed and waste material. Under this material keep higher value after conversion. It relates to producing a higher value product from converting raw materials. For instance, some industries buy waste materials of plastic and plastic bottles from the market and produce phone holder and planters by cutting and redecorating these bottles. Up-cycle concept is usually followed by small industries and home industries (Sillanpaa & Necibi, 2019)

·         Closed Loop: It relates to the process of consumption and production whereby the disposed and waste products are returned to the manufacturing plants for reuse purposes. In our society, single product loops are quite common. Many products around us are based on this concept. Take the example of a printer cartridge. Users return their printer cartridge to their manufacturing companies to reproduce printer cartridge. Products which are consumed at a mass level cannot follow up a single loop system. For such products organizations need to have a network of closed loops. Closed loops network is supportive for the ecosystem as it supports manufacturing companies to collect used products from our societies. A fine example of an integrated closed-loop system is a collection of plastic bottles from society for some beverages selling companies (electronics-tutorials, 2019).

·         Reversed logistics: As the name suggests it relates to the process of bringing dead goods or disposed goods from the society (a point of consumption) to the recycling plant. In this process, organizations pay for transportation, collection cost, and sorting of useful goods from the waste materials. Reversed logistics is an expensive process however, manufacturing of higher value products from this recycling process can generate an acceptable profit margin for the companies. As profit for these recycling companies highly depends upon the value of the produced products, therefore, such recycling companies pay attention to the collection of higher value waste materials. Excluding all these organizational perceptive and priorities still reversed logistics has an important role in the circular economy (CE) of a country (Blumberg, 2004).

·         Grade2gradle: Another really important concept concerned with the circular economy (CE) is grade2Gradle. It relates to putting circular consumption and production in practices. Under these organizations are given certificates after assessment of their process of production and consumption. This program is expanding over the geographical sectors. However, from 2005 to 2018 it has more than 400 certified products in the categories of material reutilization, renewable energy, water stewardship, material health, and social fairness (Arthur, 2018).    

References of Key Concepts behind Circular Economy 

Arthur. (2018). What is a Circular Economy? Retrieved October 24, 2019, from www.changinggears.net: https://www.changinggears.net/what-is-circular-economy/

Blumberg, D. F. (2004). Introduction to Management of Reverse Logistics and Closed Loop Supply Chain Processes. CRC Press.

credoreference. (2019). Recycling. Retrieved October 24, 2019, from https://search.credoreference.com/content/topic/recycling

electronics-tutorials. (2019). Closed-loop systems. Retrieved October 24, 2019, from https://www.electronics-tutorials.ws/systems/closed-loop-system.html

Foundation, E. M. (2011). Re-thinking Progress: The Circular Economy. Retrieved October 24, 2019, from www.youtube.com: https://www.youtube.com/watch?v=zCRKvDyyHmI&t=60s

Sillanpaa, M., & Necibi, C. (2019). The Circular Economy: Case Studies about the Transition from the Linear Economy. Elsevier.

Wautelet, T. (2018). The Concept of Circular Economy: its Origins and its Evolution. Science Direct, 1-22.

Wrap.org.uk. (2019). WRAP and the circular economy. Retrieved October 24, 2019, from www.wrap.org.uk: http://www.wrap.org.uk/about-us/about/wrap-and-circular-economy

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