Renewable and Sustainable Energy Reviews 68 (2017) 825–833

Contents lists available at ScienceDirect

Renewable and Sustainable Energy Reviews

journal homepage: www.elsevier.com/locate/rser

The history and current applications of the circular economy concept

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crossmark
K. Winans , A. Kendall, H. Deng
Department of Civil and Environmental Engineering, University of California, One Shields Avenue, Davis, CA 95616, USA

A R T I C L E I N F O A BS T RAC T

Keywords: The challenges of balancing industrial development, environmental and human health, and economic growth in
Industrial ecology China and elsewhere in the world are drivers for recent resource use and low-carbon development strategies
Industrial symbiosis that include the application of the circular economy (CE) concept. A central theme of the CE concept is the
Closed-loop valuation of materials within a closed-looped system with the aim to allow for natural resource use while
Material flow
reducing pollution or avoiding resource constraints and sustaining economic growth. The objectives of this
Waste management
Resource use
study are (1) to review the history of the CE concept to provide a context for (2) a critical examination of how it
is applied currently. Thematic categories are used to organize the literature review of current applications
including policy instruments and approaches; value chains, material flows, and products; and technology,
organizational, and social innovation. The literature review illustrates the variability in CE project success and
failure over time and by region. CE successes, key challenges, and research gaps are identified. The literature
review results provide useful information for researchers as well as multi-stakeholder groups who seek to define
the CE concept in practical terms, and to consider potential challenges and opportunities it presents when
implemented.

1. Introduction [10], among others.

The objectives of this study are (1) to review the literature
In response to the United Nations Framework Convention on considering the history of the concept of CE to provide a context for
Climate Change, 196 participating countries created strategies for (2) a critical examination of how it is applied currently. To narrow the
low-carbon development. Of these countries, China emits higher scope and for purposes of this literature review, the following thematic
amounts of greenhouse gas (GHG) per year compared to any other categories are used to organize the results: policy instruments and
country in the world, yet contributes less carbon dioxide (CO2) approaches; value chains, material flows, and products; and technol-
emissions per capita compared to Russia and 68% of the ogy, organizational, and social innovation. These thematic categories
Organization for Economic Cooperation and Development countries were in part selected based on the Economie Circulaire dans l′Union
[1]. China produces the greatest amount of manufactured goods and Europeenne Resume Analytique [11] and World Bank [12] findings
has a historically rapidly growing economy. This pace of growth and and recommendations for applications of the CE concept. The litera-
consequental environmental damage, human health effects from ture review was conducted using searches of the journal databases
pollution, and social justice issues in China and elsewhere in the world Scopus and ScienceDirect as well as Google Scholar, and keywords
are drivers for recent low-carbon development strategies, including the including, but not limited to, industrial symbiosis, eco-industrial park,
the application of the circular economy (CE) concept [2–5]. material flow analysis, and circular economy. Close to 1500 relevant
The CE concept was popularized in China in the 1990s in response papers were identified, over 150 of which were selected for inclusion in
to economic growth and natural resource limitations [6–8]. The main the review, covering a geographic scope of 20 different countries.
point of the CE concept is to capitalize on material flow recycling and to
balance economic growth and development with environmental and 2. History of the circular economy concept
resource use [9]. Today, the concept of CE has been adopted more
widely and organizations across the world such as the European There is no clear evidence of a single origin or originator of the CE
Commission and the Ellen MacArthur Foundation are promoting concept, but contributors include U.S. professor John Lyle; his student
certain aspects of it, including materials design and flow assessment William McDonough; the German chemist, Michael Braungart; and,

Abbreviations: CO2, Carbon dioxide; CE, Circular economy; GHG, Greenhouse gas
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Corresponding author.
E-mail address: [email protected] (K. Winans).

http://dx.doi.org/10.1016/j.rser.2016.09.123
Received 21 October 2015; Received in revised form 11 August 2016; Accepted 28 September 2016
1364-0321/ © 2016 Elsevier Ltd. All rights reserved.
K. Winans et al. Renewable and Sustainable Energy Reviews 68 (2017) 825–833

architect and economist, Walter Stahel [13]. The CE concept may also up approaches. In the following sections, applications of the CE
have been inspired by Rachel Carson's Silent Spring [14], the ‘limits to concept are presented along with the main objects or ideas, actors,
growth’ thesis of the Club of Rome in the 1970s, the ‘spaceship earth’ and practices of each, which are the essential components of policy as
metaphor presented by Barbara Ward and Kenneth Boulding, and work defined by Jiao and Boons [40,41].
by eco-economist Herman Daly [8]. Pearce and Turner developed
conceptual frameworks for the CE concept such as the resource- 3.1.1. Eco-industrial park, eco-industrial network, and industrial
products-pollution mode [15]. The principles of the CE concept include symbiosis
the 3Rs (reduce, reuse, recycle) [2] and the 6Rs (reuse, recycle, Eco-industrial park initiatives include the exchange of water,
redesign, remanufacture, reduce, recover) [16]. energy, information, and or materials “to minimize energy and raw
The CE concept is interwoven with various other concepts, some of materials use, reduce waste, and build sustainable economic, ecologi-
which predate it, like industrial symbiosis [17–19]. Eco-city is a CE cal, and social relationships” [42,43]. Eco-industrial networks or
related concept that is rapidly evolving in Japan, Singapore, and industrial symbiosis networks also evolved with the same idea as eco-
elsewhere [20]. In industrial ecology and systems theory, the CE industrial parks but cover a broader geographic area within a region, a
concept is associated with a broad range of subjects such as thermo- province, or a country. Sometimes the terms industrial symbiosis, eco-
dynamics and ecological economics. Important to note is the CE industrial network, and eco-industrial park are used in the literature
concept does not work for thermodynamics, in particular because no synonmously. It is necessary to make a distinction between these
system can be 100% circular (or closed) due to the entropy law [8,21]. terms, however, because the scale and scope of the objectives, actors
In systems theory and according to thermodynamics, application of CE involved, and practice are different, as are the potential synergies that
concepts influences the production and consumption models in a way may exist for each initiative. [44]. A critical point is that the spatial
that causes a ‘degrowth phase’ not a ‘growth-oriented phase’ of the relationship, i.e. the distance between industries, influences energy and
economic system [22–24]. material flows between entities [45].
The CE concept evolved differently in light of diverse cultural and Eco-industrial park developments are the first manifestation of
social and political systems [25]. In Germany, in the early 1990's, the industrial symbiosis, occurring for the first time in the 1960's in the
CE concept was introduced into environmental policy with the intent to eco-industrial park in Kalundborg, Denmark [46]. Today, there are
address issues associated with raw material and natural resource use several examples of eco-industrial parks around the world– in India,
for sustained economic growth [26]. In China, in the late-1990's, an Australia, Korea, Japan, Canada, the United States, and Europe– that
eco-industrial park model was promoted, and in the mid-2000's, the build upon existing and potential linkages within a region [47,48].
application of the CE concept was introduced in line with Hu Jintao's Many of these eco-industrial park developments are supported by
concept of a "harmonous society," which was later implemented with policy to encourage material and information interchanges [47,48];
emphasis on waste recycling post consumerism and the development of however, some eco-industrial parks evolved without government
waste-based closed loops within a company or among different intervention.
processor and consumer groups [27]. In China, the concept of CE is The eco-industrial park in Kalundborg, Denmark exemplifies
used as a mechanism for profitable product development, new technol- natural physical linkages of material flow exchange between industries
ogy development, upgrading equipment, and improving industry within a region. This eco-industrial park self-organized in that its eco-
management [28]. The CE concept is applied in the UK, Denmark, nomic feasibility resulted from bilateral agreements among industries
Switzerland, and Portugal for waste management, primarily, although without the participation of external forces [49,50]. The park continues
there are also business models that apply material circular use (or to evolve and acts as a model system for new industrial symbiosis
reuse) concepts [29]. Some CE-related initiatives aim to increase developments elsewhere in the world [49,50]. The eco-industrial park
consumers’ responsibility for material use and waste, which is evident in Ostergotland (a region of Sweden) is another self-organized system
in some parts of Korea and Japan [30,31]. In North America and that supports material flow and linkage between a sawmill, a pellet
Europe, corporations apply the CE concept with the aim to enhance production plant, a pulp mill, and several municipality actors for
reduce, reuse, and recycle programs, and to conduct product-level life purposes of reuse of and reduced waste of CO2, heat, and power within
cycle studies [32,33]. In the past decade, a range of government top- biofuel applications [51]. The Industrial EcoSystem project Rotterdam
down, e.g., material flow analysis frameworks, and bottom-up, e.g., Harbour Industrial Ecology Project in the Netherlands started from the
harmonious society, approaches emerged that include the CE concept bottom-up, initiated by industry actors’ interests in the socio-economic
and tools for quantitative assessment of new CE initiatives [12,34,35]. welfare of new employees [52]. The Project culminated in 1994 with 69
In Serbia, implementation of the CE concept is investigated to explore industries involved, and now includes stakeholders from the govern-
potential for and benefits of new CE initiatives [36]. With emerging CE ment and academic sectors, as well as community members who are
initiatives, various tools are evolving to assess, e.g., material flows collaborating with the aim to reduce heat and CO2 waste [52].
[37,38], and many of these tools do not evaluate the social or Most eco-industrial parks or networks and industrial symbiosis
community context in which the initiatives occur [39]. initiatives are not self-organized and are instead inspired and sup-
ported by policy. In Italy, the eco-industrial park concept was
3. Current applications of the circular economy concept introduced in 1997 under Italian law Area produttiva ecologicamente
attrezzata, Law No. 57/1997 (article 26), entrusting regions to develop
The three thematic categories used to organize the literature review industrial zone initiatives according to the definition “industrial zones
results include (1) policy instruments and approaches; (2) value chains, equipped with infrastructure and systems able to guarantee health,
material flows, and product-specific applications; and (3) technologi- safety and environment protection” to which 15 regions responded.
cal, organizational, and social innovation. One region (Emilia-Romagna) instituted a regional law (Planning Law
no. 20/2000) to develop the eco-industrial parks with sustainability
3.1. Policy instruments and approaches principles [53]. Within Emilia-Romagna region, the Raibano eco-
industrial park has been assessed by Conticelli and Tondelli [53] using
Policy instruments are regulatory and economic instruments im- a strategic environmental assessment, but the project has not been
plemented to achieve an effect that will not occur in the absence of implemented to date. In the United Kingdom, several eco-industrial
governmental intervention. Note that there are different approaches to programs started under the banner of the National Industrial
policy including but not limited to policy instruments, policy frame- Symbiosis Program [54], a program which is now an independently
works or top-down approaches, and government programs or bottom- owned commercial enterprise [55].

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In the United States, the President's Council on Sustainable recovery clusters [63]. Beginning in January 2009, the Circular
Development established three eco-industrial parks after the June Economy Promotion Law took effect, supporting further consideration
1992 United Nations Conference on Environment and Development. of the relationship between economic development and environmental
Heeres et al. [56] evaluated these eco-industrial parks (in Baltimore, problems [61]. To date, China promulgated cleaner production stan-
Maryland; in Brownsville, Texas; and in the Cape Charles Sustainable dards for more than 30 industries like the oil refining industry and the
Technologies Industrial Park in the town of Cape Charles), along monosodium glutamate industry [57].
with similar eco-industrial parks in the Netherlands (the Industrial
Eco-System project, the Rietvelden/Vutter sustainable revitalization 3.1.2. Eco-industrial parks today
project, and the Moerdijk eco-industrial park). Heeres et al. [56] Eco-industrial parks now act as innovation platforms for environ-
concluded that for an eco-industrial park to succeed, both economic mental management and have in some ways created a paradigm shift
incentives from the government and a community-based, bottom-up from the end-of-pipe treatment to a more system-assessment oriented
approach to participation are required. An awareness of the benefits to one. With the advent of eco-industrial parks, interest in life cycle
current operations and the sharing of resources (water, energy, and assessment [64,65] and materials flow analysis increased to provide
wastes) rather than a mere exchange of resources is also required for an opportunities to improve the product value chain [66]. Evolutionary,
eco-industrial park to succeed [56]. multi-object system optimization models that integrate life cycle
In China, the community-based, bottom-up approach to eco- assessment and industrial symbiosis also developed [67]. Thus,
industrial park development is common practice. However, top-down systematic assessment of supply chains improved in that there is more
government agencies and initiatives support CE to form an integrated emphasis on the valorization of wastes and resources and possible
approach for implementing new CE initiatives. Unlike other countries, exchange of resources between different supply chains.
China seems to embrace the CE concept as a viable economic reform
model. The National Development and Reform Commission is in 3.1.3. Eco-industrial estates and networks
charge of CE related initiatives [57]. In China, the core ideology of Thailand established the Industrial Estate Authority of Thailand as
the CE concept is the 3Rs principles that encourage full life cycle a state enterprise within the Ministry of Industry in 1972 to develop
utilization of products to reduce waste and save resources [8]. Waste eco-industrial estates. The goal of these estates was to decentralize
exchange or byproduct exchange is implemented or planned in almost industrial development within provinces by utilizing and obtaining
every eco-industrial park because it is economical to do so, in particular value from waste through reuse, recycling, and waste minimization
for metal scraps, waste plastics, paper or wood scraps, ash, and sludge [68]. Note that an eco-industrial estate is similar to an eco-industrial
[58]. network in that they have the shared objective to create circular
China's CE-related initiatives are implemented at three levels: the economies and industrial symbiosis at a regional scale. In Thailand,
enterprise level, the eco-industrial park level, and the social level. in 2000, five industrial estates were selected as pilot projects for eco-
China's eco-industrial park initiatives are in part led by the govern- industrial estate development [69]. These projects failed due to the
ment, and three ministries influence their establishment–the Ministry government rescinding financial support. The government's actions
of Environmental Protection, the Ministry of Commerce, and the have been attributed to a lack of government-industry dialogue,
Ministry of Science and Technology [59]. China first promoted information exchange, and effective economic instruments that support
industrial development sites in the form of Economic and waste removal [70].
Technological Development Areas in 1984 and then High-Tech Parks In 2006, a separate initiative developed in Thailand referred to as
in 1988 [59]. Among the 210 Economic and Technological the Map Ta Phut Industrial Estate [71]. It had a different set of actors
Development Areas and 113 High-Tech Parks, 85 serve as eco- including the industrial sector and the academic research sector, as
industrial park pilot projects, and 23 of them are considered to be well as a framework for eco-industrial evaluation [72]. The Map Ta
under the auspices of China's national eco-industrial park initiative. Phut Industrial Estate was the start of the second phase of eco-
The State Environmental Protection Administration started a pilot industrial estates initiatives in Thailand, and with it, in general, there
operation to construct exemplary eco-industrial parks in China in was a shift from a top-down to a bottom-up approach to new CE
1999, as a mainstream policy approach model adapted from Germany initiatives [72]. Panyathanakun et al. [72] provide a careful review of
and Japan [60]. China's augmentation of eco-industrial parks is a eco-industrial estates and the bottom-up and top-down approaches to
bottom-up model [8,40]. Other policy instruments introduced by the new and ongoing eco-industrial estate initiatives in Thailand.
Chinese government to support the CE concept include the Law of the In South Africa, in 2000, the Nuclear Energy Corporation of South
People’s Republic of China on Promotion of Cleaner Production Africa [73] and the Cape Metropolitan Council, through its Integrated
initiated on January 1, 2003. This law was the first in China to provide Waste Exchange program, developed eco-industrial networks with the
an explicit definition of CE. In 2004, the CE concept was written into idea to reduce and to manage waste [74]. Following initiation of those
the 11th Five-Year Plan for National Economic and Social programs was the development of mechanisms to integrate demater-
Development, which made it the fundamental principle and an ialization and decarbonization strategies along with the use of life cycle
important target of National Economic and Social Development. assessment and material flow analysis [75]. Results from the evaluation
Also, the Law on the Prevention and Control of Environmental of these programs and others around the world (e.g., Puerto Rico)
Pollution by Solid Wastes (2004 revision) laid a good foundation for showed that a lack of community involvement influences industrial
the future legislation of CE initiatives in China [61]. In 2007, the first productivity and industrial symbiosis that in turn generates economic
resource recovery management measure (the Administrative Measure constraints and social disparities between different regions in a country
for Renewable Resource Recovery) was issued by the government of that inhibit the success of CE-related initiatives [76–80]. For example,
China [61]. The Circular Economy Promotion Law, approved in 2008 in Australia, the Kwinana Industrial Area and Gladstone mining areas
and enforced since January 2009, helped to initiate other environ- have many possible synergies between multiple actors for energy,
mental programs and CE initiatives [62]. Tianjin Economic and material, and water flows, which could facilitate innovative and new
Technological Development Area, one of the first of three national industry opportunities; however, policy instruments are not in place to
eco-industrial parks approved by China's Ministry of Environmental mobilize these initiatives [81,82]. Mattiussi et al. [82] and other studies
Protection in 2008, motived the establishment of the Industrial conducted about industrial symbiosis and CE initiatives in these
Symbiosis Innovative Technology Alliance (in 2011). The Alliance regions [83] identified the need for an integration of a bottom-up
benefited 81 inter-firm symbiotic relationships involving utility, auto- and a top-down approaches to industrial symbiosis network develop-
mobile, electronics, biotechnology, food and beverage, and resource ment.

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3.2. Value chains, material flows, and products products, waste recycling, and management in secondary vs. primary
production steel that changes its quality or grade. In some cases, the
In this section, peer-reviewed published literature on applications available technologies may also prove to be a challenge. For example, in
of the CE concept to specific systems are reviewed. The priority a study of China's iron and steel industry, the researchers concluded
materials categories identified in the United Nations 2014 scoping that sulfur dioxide would be difficult to reduce within the supply chain,
study aimed to discover "potential priorities and policy options to due, in part, to the available desulfurization technologies [104].
support the CE concept in the European Union" are used to organize
the literature review results into subsections: wood and paper, plastics, 3.2.4. Phosphorus and other chemicals
metals, agricultural products and waste, and phosphorus (and other The chemical industry plays a vital role in the economy as a source
chemicals) [84]. In the United Nations study, chemicals and com- of fine and bulk chemicals. However, there are few thorough studies of
pounds are not categorized as priority materials, however they are specific chemicals or related value chains in the CE literature. Ma et al.
included as important “cross-linkages” within priority material cate- [104] used material flow analysis to assess phosphorus in chemical
gories [84], whereas water and land are considered priority resources industries, and discovered that utilization of phosphor-gypsum can
[85]. increase to 100% by implementing CE principles [104]. Zhang et al.
[105] and Tian et al. [58] demonstrate the utility of assessing the
3.2.1. Wood and paper metabolism of one element at a time, i.e. sulfur and carbon, respec-
The forest, pulp, and paper industry typically consumes a large tively, to identify barriers to the circularity of chemicals between
amount of energy. Yet, in an industrial symbiotic setting, this industry industries, as well as within industries. Carbon is the base element
can share heat and electricity with municipal power plants [86]. Few for many organic chemicals. As such, Tian et al. [58] focused on carbon
studies have evaluated actual industrial symbiosis systems for wood metabolism and efficiency in chemical industrial parks in China,
and paper industries. Sokka et al. [87] present a case study of Kymi concluding that improvements can be achieved through green chem-
plant of the UPM Kymmene Corporation in Finland and its industrial istry and green engineering with the aims to increase energy efficiency,
symbiosis with a power plant, a water purification plant, a waste water environmental regulation, and physical exchange of chemicals. Zhang
treatment plant, and a landfill. The Sokka et al. [87] study show that et al. [105] evaluate an eco-industrial park in China called Lubei, and
there are GHG emission savings due to the industrial symbiotic sulfur used within “three chains for recycling materials and energy: the
relationships. Other studies [88–91] demonstrate potential synergies ammonium phosphate sulfuric acid cement chain, the stepped utiliza-
between energy, waste, and water flows within a hypothetical circular- tion of seawater chain, and the cogeneration of salt, alkali, and
ity mode, where the CE concept is applied to enhance material electricity chain.” The authors’ in-depth analysis of sulfur revealed
exchange for the forest, pulp, and paper industries. Li and Ma [92] disparate beliefs about system organization, e.g., cement clinker
evaluated the potential benefits of the creation of the Guangdong Silver production versus sulfuric acid plant production, two processes that
Island Lake Papermaking Park in China, showing potential savings on are equally important in that network, actually. Further research on
the water utilization rate for that Papermaking Park industry. chemicals used and reused within closed-loop systems in, e.g., indus-
trial settings, is needed.
3.2.2. Plastics
Plastics make up approximately 20–30% (by volume) of global 3.2.5. Agricultural products and waste
municipal waste flows, the result of an average per capita consumption The CE concept is applied to support resource reuse in agricultural
of 40 kg of plastic material yr−1 [93]. Various initiatives are underway industries like tanneries [106]. However, there are a limited number of
to manage plastics recycling and reuse [94,95]. Lee et al. [96] critically studies about actual CE application to agricultural and aquacultural
examined material flows of phthalates (chemicals used to make systems. A study on the animal-husbandry breeding industry in Jilin
plastics) in Europe and Denmark to address “upcycling” or maintained Province of China includes pharmaceutical, fertilizer, and agricultural
quality, “downcycling” or decreased quality, and “risk cycling” or the industry in material reuse and recycling to reduce and manage waste
presence of contaminants in waste streams. The authors present a streams and increase annual income [107]. In Vietnam, Mol and Dieu
conceptual framework for implementing the CE concept based on [108] assessed a potential eco-industrial network for a Vietnamese
“clean” resource flows and principles of sustainability linked to policy tapioca industry with the aim to minimize waste within and from the
instruments [96]. Industry. For a different system, Anh et al. [109] applied a tri-network
model developed by Mol [110], where ‘tri’ refers to economic, policy,
3.2.3. Metals and social network factors, to identify potential barriers to implement-
Metal industries like iron and steel can exchange energy, water, and ing a proposed shrimp production and eco-industrial network in
waste materials with other sectors, most notably as a cement blending Vietnam. In conclusion, the authors found economic, technology
material [97]. Active iron or steel industrial symbiosis initiatives exist (wastewater treatment), as well as policy instrument challenges to
in Sweden [98]; in Kwinana, Australia [45]; in Mipo and Onsan implementation of the proposed eco-industrial network [110].
industrial complexes in Ulsan, South Korea [99]; in Japan [100]; and
more extensively in China [101]. Dong et al. [101] identified several 3.2.6. Water
key challenges to the circularity of steel and iron and related industrial In Australia, in the Kwinana industrial area, the circular use of
symbiosis networks including excess waste material of one kind (e.g., water proved to be economically beneficial, in particular because the
plastic) that does not meet the supply and demand needs of another cost of water has increased over time due to the decline in groundwater
industry within the same system (e.g., steel). Also, naturally, the and surface water stored in reservoirs in the Perth potable water supply
exchange of materials requires transport and infrastructure; however, network [111]. In Jordan, application of the CE concept is applied to
if the necessary infrastructure is not in place, then materials can not be water use due to the water scarcity issues that lead to the need to close
transferred within an industrial symbiosis network. It is important to the loop and recycle water through wastewater treatment, i.e. for select
note that new initiatives need policy instruments like economic reuses [112]. Schetters et al. [113] explore some strategies for water
incentives to provide initial invests in infrastructure development and reuse within industrial settings. Schetters et al. [113] studied the
maintenance that support the exchange of resources [97]. Pauliuk et al. circular use of ground calcite pellets produced from industries in
[102] and Wubbekea and Heroth [103], in their studies of the steel Amsterdam as an alternative seeding material for Garnet sand in pellet
industry, concluded that the main barriers to CE application are softeners for the drinking water treatment process. They showcase the
economic instruments, i.e. tax incentives for taking back end-of-life potential economic and material reuse benefits for the industries and

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water treatment facilities, and more importantly the ability to maintain concepts applied to industrial systems are considered. In a comparison
the water quality within the industry using the technology. Li and Ma of early and advanced industrial symbiosis projects operating within
[92] studied water along with energy and solid material utilization in the Dutch stimulation program, Boons and Spekkink [126] found
the Guangdong Silver Island Lake Papermaking Park in China. Each of differences in the capacity of the industries involved to handle the
these studies shows some of the potential benefits the circular use of projects. Boons and Spekkink [127] developed a conceptual framework
water and other materials in creating a competitive advantage for the for assessing industrial symbiosis using the event sequence analysis
industries involved in the Park over other industries that have no method. They suggest that outcomes of the event sequence analysis
circularity to explore potential for resource exchange(s). Overall, these need to be evaluated using indicators such as energy consumption and
papers all conclude that the cycling of water within a closed-loop social network analysis. Overall, these studies [65,125–127] agree that
system is possible if the materials added to the water throughout its use the actors involved and events that occur over a time period of ~10
(and reuse) consider the long-term potential applications and quality of years show distinctive patterns with respect to the CE concepts applied
the water. Similar results were found in an assessment of the applica- to industrial symbiosis systems, such that how these systems evolve can
tion of the CE concept to water tourism [114]. be predicted with some accuracy. As such, the researchers iterate that if
a set of industries or a government has a goal in mind, then an effective
3.2.7. Land industrial symbiosis network can be designed to meet the objectives
The opportunity to apply waste to the land, e.g., from bioenergy based on models and lessons learned from previous systems.
industries to create closed-loop systems that use the CE concept is a Dong et al. [101] developed a network analysis framework with a
topic of research interest lacking detailed analyses to date [91]. defined system boundary to assess economic and environmental gains
However, the critical importance of land as the “basic source of based on a material flow analysis. Zhang et al. [105] conducted a study
biomass, energy, and mineral reserves” cannot be overstated [115]. on sulfur metabolism, and developed a network model that includes the
The land is linked directly to agricultural product and in some cases enterprises or industries as nodes and the exchanges amongst them as
bioenergy production which has been explored to a limited extent the paths. The model includes a structural distribution and functional
within the contexts of supply-chain analysis [116–120]. attributes that allow for the assessment of the existence of flows
between nodes and the magnitude (characteristic) of each flow. The
3.3. Technological, organizational, and social innovation researchers conclude that the methods they employed in their studies
are data intensive, yet the results of the work are useful in that they
Innovation can be stimulated by government and industry actors provide a basis to improve and to stabilize industrial symbiosis
[45], by economic geography and value chains, or by feedbacks operations.
between ecological and economic systems [111]. Overall, the barriers Park et al. [128] used ecological modernization theory as a lens
to implementing the CE concept are often technical and economical, through which to evaluate three firms in China and contextualize the
and are sometimes due to a lack of stakeholder involvement in a shared firm-level and industrial-level value streams, concluding that techno-
vision, as was shown in assessments of the printed circuit board logical and innovative practices increase in value within a company or
industry [121] and the electric vehicle industry [122]. Organizations an industry that stimulates CE-related initiatives. Park et al. [128] and
like the Ellen MacArthur Foundation and the McKinsey & Company Zhu et al. [129] assess supply-chains from upstream and downstream,
are creating mechanisms for technical and social innovation. using a statistical approach to evaluate environmental supply chain
The Ellen MacArthur Foundation developed a list of priority cooperation from three perspectives (or dimensions): internal environ-
research themes to include product and materials innovation in mental management, eco-design, and corporate asset management and
biological and technical materials and processes, economic and busi- recovery. Both studies [128,129] highlight the importance of bottom-
ness models, material flows and reverse cycle systems, and enabling up, customer cooperation, and top-down, moderating or mediating
conditions and systems for the energy sector [13]. These priority effects of manufacturers, managers, and government agencies.
research themes (except material flows and reverse cycle systems) are Heuristic algorithms and neural network models were used to assess
examined briefly in this section through the observation of peer- iron and steel industry initiatives in China that apply the CE concept
reviewed literature that investigates one or more aspect of each theme. [130,131]. These studies show the importance of using models
One additional category is added to provide a brief overview of as tools to evaluate current CE initiatives to systematically improve
innovative assessment models for various CE-related initiatives. the design of new CE-related initiatives.

3.3.1. Product and materials innovation in biological and technical 3.3.3. Enabling conditions and systems for the energy sector
materials and processes Zhou et al. [130] assessed energy in three sectors in China
Cohen-Rosenthal [123] describes entropic effects and materials and (residential households, transportation, and the building materials
flows that should be part of a how “stuff” works and the analysis of industry) to create a conceptual framework to evaluate links between
material manufacturing, design, and reuse. Conventional industrial urbanization and energy consumption in line with CE principles. The
manufacturing is used to convert a conglomerate of raw materials into authors conclude that energy savings is possible in each sector, e.g.,
processed goods and products that often do not have the same through the use of higher quality building materials (cement, steel,
structure or function as the parent raw materials chemically, physically, aluminum, and glass) and improved energy performance of buildings.
or biologically. Theoretically, the CE concept suggests materials can be Sokka et al. [87] assess industrial symbiotic relationships in Finnish
designed to be cycled through industrial systems as if they are in forest industry with the idea to reduce GHG emissions and energy
natural systems [124]. Yet, this idea is impractical when there are consumption in biofuel production systems. The authors highlight the
engineering and technological limitations to manufacturing and de- importance of not perceiving energy production systems (in this case
signing products that are akin to the structure or function of their the authors refer to a pulp and paper industry used in part for fuel
parent (raw) materials. production) as stand-alone systems, in particular when there are cross-
linkages within an eco-industrial system.
3.3.2. Economic and business models
Most existing empirical assessments of the economic and business 3.3.4. Models used to assess CE related initiatives
model dynamics of CE initiatives can be characterized using compara- Several different models have been created to assess CE-related
tive studies, e.g., [125]. Some researchers use a dynamic systems initiatives. This section highlights selected models that provide a
assessment approach whereby conceptual time-space conditions of CE careful assessment of specific applications of the CE concept. For the

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most part, the models alluded to in this section are not noted in to adopt the CE concept [143].
previous sections of this article. Social innovations that allow for community involvement, wider
Eco-industrial parks like Kulundborg in Denmark that have been public education, and broader media coverage are essential to the
around for a long time provide opportunities to study and to devel- success of an initiative that applies the CE concept [144]. Further,
op models that can be used to systematically assess new CE-related without knowledge resources (i.e. informaiton), stakeholders either “do
developments. Such models include the planned eco-industrial park not know how to respond to recycling pressure or may employ tactics
model developed by Chertow [132], the three-step model presented in that do not effectively reduce their waste” [56,70,145]. Also, successful
Chertow et al. [17], and the strategic environmental assessment model implementation of the CE concept requires that the stakeholders have a
used by Conticelli and Tondelli [133]. The three-step model introduced clear idea of the potential economic benefits, social disparities, waste
in Chertow et al. [17] includes sprouting (initial exchange of resources, reduction, reduced environmental burden, and reuse of materials [76–
e.g. between industries), uncovering (i.e. regional learning), and 80,105,121,122].
embeddedness and institutionalization (i.e. self-organization, consid- Specific value chains, material flows, and products need to be
eration of scope or geographic proximity, development of social capital, assessed to show the value of applying the CE concept. There are
and expansion of initial exchange or resource and idea). This three-step potential barriers to product-level use and reuse in a closed-loop
model allows for an adaptable approach, i.e. it is neither a top-down system, including the lack of information about specific products
nor a bottom-up approach. It does not emphasize the importance of a [146] and the perceived risks associated with refurbishing or reusing
particular institutional structure or actor group, but rather depends on materials like plastics [147] and food wastes [148]. However, there is
self-organization and allows for observation of regionally specific evidence that the consumer demand and the market for reused and
system dynamics, e.g., including specific conditions such as those recycled products is increasing [31], and dialogue between procurers
described in Chiu and Yong [134] for Asian developing countries. and suppliers can further support a business model for this market that
The strategic environmental assessment used by Conticelli and can be sustained [149].
Tondelli [133] includes step two and step three of the Chertow et al. A key challenge related to the use and reuse of materials (e.g., steel)
[17] model (i.e. uncovering, and embeddedness and institutionaliza- in an application of the CE concept is the quality of these materials over
tion) with a top-down approach to implementation and evaluation and time [102,103]. This challenge was discussed in the 1990s by Leontief
monitoring of eco-industrial parks. [150] who considered the value of materials over time after use and
Soft science approaches to CE project assessment includes, yet is reuse using mathematical principles. Leontief concluded that economic
not limited to, the strengths, weakness, opportunities and threats as well as physical material value can be estimated depending on the
(SWOT) analysis employed by Veiga and Magrini [135] for Brazil stakeholder need(s) [150]. In a more recent study, Franklin-Johnson
and by Chiu and Yong [134] for Asian Developing Countries. This type et al. [151] provide a dynamic model for assessing material use for
of soft science approach can be used to assess corporate social finding the maximum value of a material over time. Further investiga-
responsibility schemes, and knowledge and information exchange. tion of the quality of materials used and process and product design
Soft science approaches can be employed before a new CE project that supports reuse of materials over time, e.g., through green
starts to provide useful information for stakeholders, e.g., about the engineering, is needed.
social dynamics within a firm.
Employing models such as SWOT and the strategic environmental 5. Conclusions
assessment for new CE-related initiatives helps stakeholders to exam-
ine the practicality of the initative before investing in it. These types of The body of literature and real-world cases of successes and failures
models are essential when it is believed that recycling and reusing of the CE concept show that CE-related initiatives require integrated
wastes are an economical option for businesses [136]. Tools like an bottom-up and top-down approaches to implementation and evalua-
economic input-output (EIO) analysis can be used to quantify potential tion. Policy instruments (economic and regulatory instruments) such
economic benefits [137], or to be aware of potential barriers to the as subsidies and tax incentives work when governments have clear
success of a new CE-related initiative, e.g., government policy or waste objectives for policy processes that are evaluated and regulated,
management fees that prohibit or incentize waste disposal rather than iteratively, to achieve short- and long-term goals. Without an evalua-
waste reuse [8,138]. Other models developed for the assessment of the tion framework or bottom-up support from the industry or the
CE concept for water use and reuse within industrial and natural community, CE initiatives are not sustained.
systems include Rubio-Castro et al.’s [139] discretized, integrated Consistently, information exchange is cited as a constraint to the
model, which “could be applied to any CE development project” success of CE initiatives. In-depth assessment of ongoing CE initiatives
scenario, yet has not been tested to date. highlight barriers to sustained circularity due to material flows that
exceed or do not meet demand, and transport and infrastructure, e.g.,
4. Discussion for energy exchange. Many CE-related initiatives take advantage of yet
can be limited by proximity–the industries or resources available
4.1. Circular economy successes and challenges within the economic geography. Several CE-related initiatives are
constrained by a lack of regulation, incentive(s), and infrastructure
The CE concept has influenced policy and innovation in some of the required for resource exchange.
world's largest economies such as China, Germany, Japan, and the UK. Critical research gaps observed in this study include the CE concept
One finding of this review is that CE-related initiatives need to be well application to and assessment of the biological systems (e.g., agricul-
designed and evaluated regularly. Whereas many new CE-related tural industries) and the chemical / biochemical industry products and
projects fail, others have operated for decades, for example, in China value chains. Plastics are less studied, yet there are several European-
[140] and Denmark [45]. In some cases, there is an opportunity to based research initiatives underway to address this research gap. It is
learn from the projects that succeed as well as those that fail. still unclear how land use can be integrated into CE-related initiatives,
Appropriate policy instruments contribute to the success of design, and evaluation.
[2,70,141] and to the innovation and network synergies that help The quality of materials circulated in, for example, an eco-industrial
stakeholders to meet the multiple objectives or environmental, eco- park or industrial symbiosis network is of critical importance.
nomic, societal/managerial, and topological challenges of CE-related However, this topic is highlighted in only a few studies. The studies
initiatives [81,82,142]. Policy that supports standardized use and that consider this topic do so in the context of downcycling, upcycling,
recycling of products (or materials) is required to encourage industries and risk cycling in the metal and plastic industries, and to some extent

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with respect to water cycling, however it is often underemphasized or com/about/innovation/safety-and-environment/reducing-our-environmental-

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