Artiklar
Conceptualizing the circular economy: An analysis of 114 definitions Our CE definition reads
A circular economy describes an economic system that is based on business models which replace the 'end-of-life' concept with reducing, alternatively reusing, recycling and recovering materials in production/distribution and consumption processes, thus operating at the micro level (products, companies, consumers), meso level (eco-industrial parks) and macro level (city, region, nation and beyond), with the aim to accomplish sustainable development, which implies creating environmental quality, economic prosperity and social equity, to the benefit of current and future generations
Eric Dahmén and industrial dynamics Important terms and concepts in Dahménian theory: Structural tensions
A corner stone in the theory is structural tensions, which causes uneven development both between and within sectors. Structural tension can happen at 2 levels: At company, industry or institution level or it can be related to technological and organizational development. - Company, industry or institution - Here the tension can be analyzed in regard to production, malinvestments and cultural and market related inertia. All these may create difficulties for innovative companies to establish themselves. Another part of this level may be bottle necks that might occur due to limits set by communication structure or limited local markets. - Technological and organizational development - Here Dahmén talks about bringing technology and organization into fitness between each other. One example of this is from the steel industry when a new process, the ingot steel process, had a hard time gaining traction since the development of the process feeding the raw material to the ingot process did not develop in the same pace, causing structural tensions.
This is Industrial Dynamics According Bo Carlsson there are five broad themes that constitute the basic questions in industrial dynamics
According Bo Carlsson there are five broad themes that constitute the basic questions in industrial dynamics: 1. The causes of industrial development and economic growth, including the dynamics and evolution of industries and the role of entrepreneurship 2. The nature of economic activity in the firm and the dynamics of supply, particularly the role of knowledge. 3. How the boundaries and interdependence of firms change over time and contribute to economic transformation. 4. Technological change and its institutional framework, especially systems of innovation. 5. The role of public policy in facilitating adjustment of the economy to changing circumstances at both micro and macro levels.
Eric Dahmén and industrial dynamics Important terms and concepts in Dahménian theory: Advancing, stagnating and disappearing industries (Analyzing the transformation of the industry)
Advancing, stagnating and disappearing industries (Analyzing the transformation of the industry) - Advancing - Here Dahmén makes a distinction between market suction (When the market is changed because of demands outside the industry itself, "demand pull") and market expansion (Driven by internal process innovations and and other internal mechanisms, often called "technological push"). - For stagnating and disappearing industries Dahmén means that what is interesting here is those transformations taking place because of new processes and new products and not the ones happening because of the normal cycles and malinvestments.
Systems thinking in Industrial dynamics Agent-based modeling (ABM)
Agent-based modeling (ABM) - Represents more recent advancements in modeling social systems. - Focuses on the behavior of actors and their behavioral rules - A possibility with the ABM approach is to construct a system and then remove particular agents one by one to detect which effect they have on the system - something that would not be possible using system dynamics.
Conceptualizing the circular economy: An analysis of 114 definitions Aim
Aim The aim of this paper is to create transparency regarding the current understandings of the circular economy concept.
Barriers to the Circular Economy: Evidence From the European Union (EU) Definition CE
An economic system based on business models which replace the "end-of-life" concept with reducing, reusing or recycling materials in production/distribution and consumption processes, with the aim to accomplish sustainable development to benefit current and future generations.
Systems thinking in Industrial dynamics An often cited definition on a large socio-technical system
An often cited definition on a large socio-technical system "Such a complex and heterogeneous system of physical structures and complex machineries 1 ) whose material components are integrated or 'linked' over large areas and over time 2) supports or facilitates the operation of a large number of other technical system, the organizations thus linked together."
The transformation to a circular economy: framing an evolutionary view Analytic Framework
Analytic Framework Basic elements in consideration when explaining evolutionary processes in the field of economic development: time, energy, human know-how and material. Thus, the evolutionary process can be analysed by measuring the changes in the flows of these elements, both in the soci-economic and ecological system. It can be argued that CE is an evolutionary strategy, involving the flow of these basic elements.
This is Industrial Dynamics Modular and Architectural innovation
Architectural innovation - If a company changes the architecture of a product without changing the core design an architectural innovation is created. - This kind of innovation is often triggered by a small modification of a component. - Although the alteration of the architecture may not seem as a large alteration it can have a massive impact on the company and result in a leap not unlike the case of radical innovation. Modular innovation - Modular innovations alter the fundamental design concept without altering the product architecture. - While architectural innovations alter the connecting components of the product and thus the architecture, modular innovations do not change the architecture but they alter the entire concept on which the product is built, without changing the purpose of the product itself.
The circular economy - A new sustainability paradigm? What are the main conceptual similarities between sustainability and the Circular Economy?
Both concepts share a global perspective where they emphasize problems at a planetary scale which leads to shared responsibilities and a need for coordination between many different agents. Some selected similarities are: - Integrating non-economic perspectives into the development. - System change/design and innovation at the core - Multi/-interdisciplinary research field. - Cooperation of different stakeholders essential. - Incentives and regulations important implementation tools. - Business model innovation as a key for industry transformation. - The technological innovations are important, but there are often problems connected to implementing them.
Systems thinking in Industrial dynamics Changing a Large Socio-Technical System
Changing a Large Socio-Technical System In the LTS-perspective, system change is caused by forces, such as: new technology, new or changed market conditions, environmental concern, policy changes and institutional innovation or lack of primary products (like oil).Factors that Eric Dahmén would label "transformation pressure" creating "structural tension" The change caused by transformation pressure takes the form of a "salient" or a "reverse salient". The concepts are used to describe a system component or a sub- system being ahead or lagging, compared to other components and given the desired direction of the advance. Salient - a component that is more advanced than the system, pulling the system towards change. Reverse salient - a lagging component of a system. For example, a battery in an electric car since it is the component that limits the driving range. The labeling of a component depends on the perspective it is viewed from, a component that is seen as salient from one perspective can be seen as reverse salient from another perspective. Salients and reverse salients disturb the system and slow down growth.
Systems thinking in Industrial dynamics Large Technical Systems (LTS) Characteristics
Characteristics - The systems are built up of components such as technical artefacts (cars, electricity cables and roads); institutions (formal and informal) and actors (professional and commercial), connected in mutual interdependence. - LTS: s is often centrally planned and managed leaving users and appropriators with little power. - The systems are not easy to change and deeply embedded is society. Negative externalities, such as pollution and global warming effects, are difficult to handle. - Some of our infrasystems are not well adapted to the goals of sustainable development. It is important to understand that most LTS: s did not start as centrally planned systems. They were not large and connected at all in the beginning of their history. The historical origins of most, if not all, large technical systems include some form of cooperation among its users. In Sweden, for example, the development of the electrical and the telephone systems started as cooperatives or other forms of joint ventures of users building the networks from the bottom up. But in the end the systems were transformed into a centrally administered and controlled, tightly integrated, national infrasystem. Management changed from bottom-up to top-down. This centralization of the systems was also due to market mechanisms such as economies of scale and a consolidation of the whole industry around the system, often creating a monopoly or oligopoly market.
Systems thinking in Industrial dynamics Characteristics of a complex system
Characteristics of a complex system: - A complex system has equifinality, which means the ability to achieve its goal in different ways. - Sometimes complex systems are described as being on the edge of chaos because the interactions of simple subsystems can result in unpredictable and seemingly random outputs. - A complex system is also characterized by hierarchy and showing degrees of robustness and ability to adapt to its environment. Ludwig von Bertalanffy argued that a system is characterized by the interactions of its components and the nonlinearity of those interactions. He also argued that no system that is open to interactions with the surrounding environment, i.e. an open system, should be viewed in isolation
A comprehensive review of industrial symbiosis Circular Economy & Industrial symbiosis
Circular Economy & Industrial symbiosis: Industrial symbiosis can lead to the development of a circular economy, and the other way around.
The transformation to a circular economy: framing an evolutionary view Circular Economy (CE) has become an important framework to induce a transition towards sustainable production and consumption. Theoretical frameworks that can be used to analyze the dynamics of transitions through an evolutionary approach:
Circular Economy (CE) has become an important framework to induce a transition towards sustainable production and consumption. Theoretical frameworks that can be used to analyze the dynamics of transitions through an evolutionary approach: Transition management Strategic niche management Multi-level perspective on socio-technical transitions Technological innovation systems
The circular economy - A new sustainability paradigm? 8 different types of relationships between CE and sustainability
Conditional relationships: - Conditional relation: CE is one of the conditions for a sustainable system. - Strong conditional relation: The main solution for a transformation to a sustainable system. - Necessary but not sufficient conditional relation: A necessary but not sufficient condition for a sustainable system. This means other conditions needs to be fulfilled in order to achieve a sustainable system. One example could be change of lifestyle. Beneficial relationships: - Beneficial relationship: Beneficial in terms of sustainability, without referring to conditionality or alternative approaches. - Subset relation: Circularity is seen as one among several solutions for fostering a sustainable system. - Degree relation: Yielding a degree of sustainability with other concepts being more or less sustainable. Trade-off relationships: - Cost benefit/trade-off relation: Having costs and benefits in regard to sustainability, which also can lead to negative outcomes. - Selective relation: Fostering certain aspects of sustainability but lacking others.
The transformation to a circular economy: framing an evolutionary view Core concept of this article
Core concept of this article was to discuss CE as an evolutionary process and to propose a conceptual framework that builds on a development block approach.
Eric Dahmén and industrial dynamics Important terms and concepts in Dahménian theory: Creative destruction
Creative destruction - When old innovations are destroyed or disappear (Technologies become obsolete and firms close down) because new innovations come.
Barriers to the Circular Economy: Evidence From the European Union (EU) What are the main barriers that derail or slow down the transition towards a CE in the EU?
Cultural barriers Market barriers Regulatory barriers Technological barriers
The transformation to a circular economy: framing an evolutionary view Development block
Development block The development block (DB) framework is a tool used to analyze industrial transformations and the mechanisms driving them. It is based on Schumpeterian dynamics, which focuses on the transformation of industries, companies, and technologies, and is related to business cycle theory. The DB framework sees industrial transformation as the introduction of new forces such as technologies, regulations, actors, products, markets, and services to the existing system, which create imbalances and lead to tensions and uneven development within and between industries. It also views the transformation process as a historical process with two extreme situations: possibility and necessity, with positive and negative transformative pressure. Positive pressure refers to the possibilities for economic and industrial development, while negative pressure exists when there are strong requirements to adjust and adapt. The development block (DB) framework is a tool used to analyze industrial transformations and the mechanisms driving them. It consists of several components, including complementarities, transformation pressure, structural tension, entrepreneurship activities, and institutional dynamics. Complementarities are dependencies among interrelated actors in a development block, including companies, institutions, industries, entrepreneurs, and other organizations. The co-evolution of complementarities can be required for the transformation process, but imbalances and missing-complementary stages can create tensions within the industrial system. Transformation pressure can come from the appearance of new markets, the exploitation of new raw materials and energy, the disappearance of old products/services, and the closure of old sources of raw materials and energy. Structural tensions can be repeated over time and analyzed at different levels, including technical, organizational, and societal levels. Entrepreneurial activities and institutional factors can impact the pace of development and the elimination of structural tensions. The DB framework can be used to identify and explain pathways of industrial transformation from an evolutionary perspective, particularly in the context of the circular economy. It can help understand how complementarities and structural tensions evolve over time and how transformation pressures and institutional dynamics impact the transformation process.
The transformation to a circular economy: framing an evolutionary view Development block approach
Development block approach A framework that focuses on the interplay between technological, social, and institutional changes in the context of the circular economy. The framework is based on the idea that technological, social, and institutional changes are interconnected and influence each other in the process of transitioning towards a CE. It recognizes that technological changes alone are not sufficient to drive the transition and that social and institutional changes also play a critical role.
Systems thinking in Industrial dynamics Differences between LTS and MLP
Differences between LTS and MLP - LTS represents a (relatively) tightly coupled physically interconnected technical systems (with social components) the regime-concept constitutes a non-physical structure that accounts for the stability of socio-technical systems. - A regime does not necessarily represent an infra-based system (as LTS does) but is a representation of interconnected political, economic, cultural, social, institutional and technological elements. - The MLP approach also has a wider range of applicability. - The socio-technical regime also accounts for a selection-retention mechanism for different innovations.
Systems thinking in Industrial dynamics Multi-Level System Diagnosis: Combining LTS and MLP The framework focuses on the system actors point of view and on finding reverse salients. The purpose of the diagnosis is thus to identify misalignment between systems components or sub-systems. Each level has a couple of general research questions to guide the investigation
Each level has a couple of general research questions to guide the investigation Local alignment: - How do we organize and manage the LTS at the local level? - Are there reverse salients causing misalignment on the local level that could cause the system to slow down its development? - Is there misalignment between local system components and the next level of the LTS - the sociotechnical regime? Socio-technical regime alignment: - How do we organize and manage the LTS at the socio-technical regime level? - Are there reverse salients causing misalignment on the regime level that could cause the system to slow down its development? Landscape alignment: - How do we align the whole LTS (local and regime level) with neighboring institutions and systems in society? - Are there reverse salients causing misalignment on the landscape level that could cause the system to slow down its development?
The transformation to a circular economy: framing an evolutionary view Evolutionary nature of the circular economy
Evolutionary nature of the circular economy Three scopes of analysis: macro level, micro level and meso level. Macro level: Analyzes how the CE influences industrial structure at national and global levels Micro level: Focuses on products, firms, and consumers and their preferences. Meso level: In between micro and macro. Often related to local policies and actions, such as those promoting industrial parks and industrial symbiosis. Radical change can be viewed from several stances: institutional level, industrial structure, organizational strategies, and societal values and norms.
This is Industrial Dynamics Important terms and concepts in Dahménian theory: Ex ante, ex post
Ex ante, ex post - Terms used in this discourse where ex ante (in advance) described the decisions made in the beginning of a period and ex post (afterwards) describes what occurs later when the real effects of all actors' decisions have affected the economy.
Systems thinking in Industrial dynamics Example analysis: Identifying reverse salients in the the ongoing wind power establishment in Sweden
Example analysis: Identifying reverse salients in the the ongoing wind power establishment in Sweden Local alignment - Firstly, one important reverse salient is that inhabitants in the rural areas has no direct experience in working together in large and capital intensive projects. - Secondly, there are no clear economic incentives to support the project if you are not the actual landowner. - One way to solve these reverse salients and improve local alignment is to create an organization - a distinct actor - similar to the already existing road associations managing local roads. Local alignment appears when all sorts of economic and social externalities, revenues and costs, are shared in a fair way. Socio-technical regime alignment - The Swedish electricity system has been designed as a distribution system from the center to the periphery. Wind powered electricity is small-scale with decentralized production plants. - Secondly, there are economic reverse salients in the difficulties of billing, due to the contingent nature of the wind. If it is windy, the windmill owner needs to get paid for this contribution, and else the owner must be oble to use electricity from other sources. - Thirdly, institutions, regulations, organizations and markets are designed exclusively for a distribution system with large central production plants. It is hard to meet rules on security and reliability for smaller producers. Landscape alignment - One surprising miss-alignment appeared when the communal income tax law from 1928 was rediscovered, and unexpectedly, became a reverse salient in the wind power system. By a decision by the central tax authority in 2008 the same rules were to be imposed on collective ownership of wind power. - It is of course possible to identify reverse salient causing landscape miss- alignment regarding laws and customs from other areas, i.e. public right of common (allemansrätten) animal and nature protection, cultural heritage, etc.
This is Industrial Dynamics Examples of DB in the swedish industry (Can also often be seen as LTS, Hughes):
Examples of DB in the swedish industry (Can also often be seen as LTS, Hughes): The energy block: Here we have a stable state (Maybe we cannot even say that it is stable today, but picture this a few years back), or some kind of equilibrium, with the important parts of the system connected via the electricity grid and households, companies and industries relying on a continuous stream of electricity coming from big power suppliers. Today we are facing climate changes, which causes the need and want to phase out all fossil fuels to get more climate friendly alternatives like wind power and solar panels. The problem there is that the wind does not always blow and the sun is not always shining. So more solutions are needed.This creates tensions in this DB when technologies available today for producing sustainable energy do not fit the existing demand structure. In the chapter, the author describes how this creates both necessities and opportunities both for users and producers when this puzzle is to be solved. And then he mostly correctly predicts that this will lead to higher prices, when some still need a stable demand and new technologies to adapt to less stability and to avoid peak prices (like different storage solutions). The transport block: A DB that could be defined with many different boundaries. For example personal transportation and even narrower as personal transportation with cars. Here we also find tensions created by the need to change from fossil fuels, which of course again creates opportunities and necessities. This block probably needs to be transformed with a sharp reduction of the number of personal cars, replaced by more sustainable means of transportation, like buses and trains. The structure of ownership and models for transportation likely also need to change to something new. The steel block: This is one of the most important blocks in the Swedish economy, acting as a backbone for the economy since the industrialization of Sweden. But since the steel block also is one of the biggest producers of GHG it is essential for a change to happen here if Sweden wants to transform to a country less dependent on fossil fuels. The problem right now is that coal is used in the process of making a cleaner steel, not only for energy and hence the current process is not compatible with the goal of mitigating climate change. But to just erase the Swedish steel production would not be good on a global scale since steel from countries with processes not as clean would replace it. So as seen there is a lot of tension in this block too. Future DBs: By analyzing all the tensions in these current blocks one could try to find possibilities for new DBs to arise. In this chapter the author takes an example with a hypothetical development block around hydrogen. This could come in handy in all of the blocks mentioned above, as energy storage, for some parts of the transport block and also for the process of reduction of iron ore to steel. This and other innovations in this new block would of course create new tensions, maybe new salients in the old blocks, which would show new opportunities and necessities for transformation. This is all in line with Dahmén's more evolutionary view on economy, always transforming and changing and never any real equilibrium.
A comprehensive review of industrial symbiosis Circular Economy & Industrial symbiosis Examples
Examples: China has made an effort to contain greenhouse gas emissions by implementing a number of policies and programs that curb the negative effects of rapid industrialization and urbanization that have occurred in recent years. In addition, China being a developing economy country, presents a lower economic and social level, and it is therefore imperative to become more efficient, which has resulted in several programs to accelerate growth and to use resources efficiently, such as those to stimulate the circular economy and consequently industrial symbiosis.
A comprehensive review of industrial symbiosis Industrial symbiosis Examples
Examples: As industrialization and urbanisation has lead to increased carbon emissions, and further on global warming and negative consequences on human health, solutions had to be found. One thing which would help is industrial symbiosis, since this involves the sharing of resources such as exchange of materials, energy, water and by-products between companies in different sectors. This is a big step in the process of obtaining a zero level of waste. In order to meet this, industrial symbiosis has spread throughout the world with positive economic, environmental and social results. For example, in Sotenäs, Sweden, and even at an early stage, the industrial symbiosis network has allowed for the retention or creation of 20 jobs, the creation of 5 new companies as well as a reduction of approximately 59 million kg CO2 emissions annually through resource sharing. Another example: in Västra Götanald, Sweden, where one of the symbioses is developed between growers of mushrooms and farmers, and the other between brewers and breeders.
A comprehensive review of industrial symbiosis Urbanization Examples
Examples: During the industrial revolution, the technological explosion lead to an increased urbanization, as larger populations in concentrated areas lead to a larger labour force in factories. Attracted by economic factors, people moved to these urban areas (cities) to work.
A comprehensive review of industrial symbiosis Urban symbiosis Examples
Examples: Urban symbiosis can include common infrastructure systems for supplies and services, knowledge sharing between regions. An example of urban symbiosis is e.g. creating biofuel from organic waste, e.g. in 1997 when Stockholm City replaced 300 of its vehicles by clean hybrid vehicles fueld by biogas. This contributed to lower emissions in society. Stockholm introduced tax relief for biogas fueld vehicles to rise the public demand. This pushed the biogas production infrastructure to grow (technological growth).
Conceptualizing the circular economy: An analysis of 114 definitions Findings
Findings Our findings indicate that the circular economy is most frequently depicted as a combination of reduce, reuse and recycle activities, whereas it is oftentimes not highlighted that CE necessitates a systemic shift. We further find that the definitions show few explicit linkages of the circular economy concept to sustainable development. The main aim of the circular economy is considered to be economic prosperity, followed by environmental quality; its impact on social equity and future generations is barely mentioned. Furthermore, neither business models nor consumers are frequently outlined as enablers of the circular economy.
Supply network collaborations in a circular economy: A case study of Swedish steel recycling. Example of Swedish steel production: Horizontal collaboration:
Horizontal collaboration: relationship between two suppliers or two buyers. Ex: (Between steel producers). Steel producers compete with each other so they are not allowed to discuss the price of steel scraps. All horizontal collaboration between buyers therefore has to go through the procurement intermediary, which coordinates supply and demand in the network, and how to allocate steel scraps in order to make everyone satisfied and keep the prices low. This is also important to ensure that the buyer gets the correct amount of steel scrap at the agreed time point. The motivation for horizontal collaboration is efficiency.
Mystery of the wheelie suitcase: how gender stereotypes held back the history of invention Why was this innovation so "slow"?
In fact, wheeled suitcases were explored long before they were invented commercially, but these solution were then seen as "female" products, as females were unable to carry heavy suitcases. During early-mid 1900, a "macho" stereotype where men carried the luggage for their wives, as it was seen as "unmanly" not to do so, hindered the early innovation. And as women were not assumed to travel alone (without a man), there were no reason of inventing rolling suitcases commercially.
Supply network collaborations in a circular economy: A case study of Swedish steel recycling. Example of Swedish steel production: Everything stated above ^ is reasons for collaboration, but there is also a negative aspect of collaboration
In mainly lateral collaboration high-volume scrap dealers and steel producers will wield more influence than those with lower volumes, and this imbalance can result in unfair negotiations since some actors have more power.
Mystery of the wheelie suitcase: how gender stereotypes held back the history of invention In short
In short: masculinity hindered the fast innovation of wheeled suitcase, as men "must" carry heavy things to retain their masculinity. This is why the innovation of the wheeles suitcase came as late as in the end of the 19-century. Such stereotypes could therefore be dangerous, as they hinder "obvious" but smart innovations from being commercialized. "How Good Ideas Get Ignored in an Economy Built for Men?".
Dynamics in Swedish Industrial and Political history Overview
In this article, the complex interplay between governmental actions and industrial development in Sweden during one and a half centuries is discussed. It is hoped that the reader of this article shall be aware that yesterday's successful principles of setting rules for industry, as well as organizing and managing different businesses might no longer be appropriate.
The transformation to a circular economy: framing an evolutionary view Radical change can be viewed from several stances: institutional level, industrial structure, organizational strategies, and societal values and norms. Industrial and organizational structures
Industrial and organizational structures The transition to a circular economy (CE) involves radical changes to industrial structures and economic relationships. This can create resistance to new structures in industrial relations and supply chains. The CE involves the exchange of resources such as materials, water, energy, and by-products among different actors, and can require the adoption of cleaner production technologies and higher interdependencies among those actors. This process can make some parts of the system obsolete, such as certain technologies or relationships. The closed-loop value chain of the CE requires new configurations and relationships among actors, including suppliers, manufacturers, transporters, warehouses, retailers, customers, remanufacturers, recyclers, and second-market retailers. Coordinating these relationships and ensuring the availability of information, logistics infrastructure, changes in consumer behavior, and supportive regulations can be challenges. Barriers to the transition to the CE can include the lack of infrastructure for reverse logistics, the absence of viable product design methodologies, and the lack of feasible business models. The transformation to the CE also requires firms to change their organizational structures, capabilities, and strategies, which can involve changing existing business models and adopting new ones that align with CE principles. This process can create tensions within firms and may require changing the organizational culture and encouraging the company's social and environmental responsibility. There is also a need for adequate financing, collaboration, and governance to support the transition to the CE.
A comprehensive review of industrial symbiosis Industrialization Examples
Industrial revolution (took place in Europe and North America in the beginning of the 19:th century), where the development of technologies such as the steam engine, which was used to power locomotives (trains), and machines in factories, lead to mass production. Another important creation was the "spinning jenny" which was a key development, as it allowed machine production of threads and yarns, instead of production by hand. These developments lead to increased efficiency and productivity (mass production). But also consequences such as higher emissions (negative for the environment).
A comprehensive review of industrial symbiosis Industrial symbiosis
Industrial symbiosis: a concept which allows corporations between companies that are traditionally separated, where they share resources. This has environmental, economic and social benefints.
A comprehensive review of industrial symbiosis Industrialization
Industrialization: the process of economic and social change in which society moves towards an economy based on industry and manufacturing. Industrialization is characterized by the development of new technologies and the growth of large-scale industrial facilities, which leads to mass production and increased productivity (long-term economic growth). Although, the rise in industrialization has lead to increased carbon emissions, which has lead to global warming and negative impacts on human health.
The transformation to a circular economy: framing an evolutionary view Radical change can be viewed from several stances: institutional level, industrial structure, organizational strategies, and societal values and norms. Institutional level
Institutional level The policy decisions made by policy bodies are important for shaping standards that support the transition to a circular economy (CE). The CE requires innovation and creativity to reach its goals, and can be driven by both market and legislative forces. However, the current dominant institutional system and policy prescriptions are based on a linear industrial-economic system, which can make it difficult to implement radical changes. Institutional challenges to CE implementation can include weak economic incentives, poor enforcement of legislation, and limitations in government management systems. These challenges are not limited to national borders and can also be influenced by international policies. The adoption of the CE can also vary among countries, with some being early adopters and others following the lead of others.
Systems thinking in Industrial dynamics Landscapes
Landscapes - The level that constitutes the environment of the socio-technical regime. - Characterized by the set of rules that guide technical design, the rules that shape market development and rules for regulating these markets. - The socio-technical landscape includes the institutional and market aspects required in order for lower levels to function. In the 1850s and 60s two events on landscape level gave steamships an unforeseen advantage. At the time, most passengers preferred the quicker steamships compared to the time-uncertain sail ships. The emigrant-wave from Europe to America became the first major market segment dominated by steamships. This emigrant wave was driven on by famine and political revolution in Europe, as well as the Californian gold rush. Events that were clearly outside of what the actors in shipping and overseas transport could affect.
Systems thinking in Industrial dynamics Large Technical Systems (LTS)
Large Technical Systems (LTS) The LTS perspective is typically used to study large physically connected infrastructures, characterized in the LTS framework as large socio-technical systems. The perspective was introduced by Thomas P. Hughes in the beginning of the 1980s.
Supply network collaborations in a circular economy: A case study of Swedish steel recycling. Example of Swedish steel production: Lateral collaboration
Lateral collaboration: Includes both vertical and horizontal. Relationship between multiple buyers or/and suppliers. Ex: Two forms of collaboration. Firstly, there is the issue of radiation in the steel scraps. Here both the supplier and buyer share the problem (want to avoid radiation) and the solution (testing the steel scraps). The other form of collaboration is about the quality and price of the scraps, and regarding this the suppliers and buyers do not always get along and have different opinions on what "good quality" actually means. This means that the procurement intermediary has to work with both the suppliers and buyers in order to reach a fair solution, and it is important to keep documentation of this. Efficiency for both suppliers and buyers is the motivation for lateral collaboration.
Barriers to the Circular Economy: Evidence From the European Union (EU) Market barriers
Low virgin material prices would prevent CE products to outcompete their linear equivalents. Recycling does not occur because it is uneconomical relative to the production of virgin materials. High cost of CE business models, so companies do not implement it.
Systems thinking in Industrial dynamics Multi-Level Perspective (MLP)
Multi-Level Perspective (MLP) The MLP perspective is used to study societal and technological transitions and is popular in studies on socio-technical change towards sustainability. MLP studies divide the studied area/sector into three system levels (niche, regime and landscape) to explain the dynamic change processes between the different levels causing technological and societal transitions. "Breakthroughs of innovations thus depend on processes on the level of regimes and landscapes, i.e. they are context-dependent. It is because of this aspect that the multi-level perspective is useful for analyzing technological transitions."
Systems thinking in Industrial dynamics Multi-Level System Diagnosis: Combining LTS and MLP
Multi-Level System Diagnosis: Combining LTS and MLP The framework focuses on the system actors point of view and on finding reverse salients. The purpose of the diagnosis is thus to identify misalignment between systems components or sub-systems.
Systems thinking in Industrial dynamics Niches
Niches - Innovations and novelties are often developed in niches, which are protected environments where the innovation can mature and be tested before being included in the system. - The niche level is derived from the idea that radical novelties (innovations) are developed in niches that enable cross-disciplinary experimentation. - Well-developed niches are suggested to act as building blocks for change; they are central for regime shifts.
Barriers to the Circular Economy: Evidence From the European Union (EU) Regulatory barriers
Not a pressing barrier, which could be because this study was focused on the EU where they have already worked a lot with CE and thus probably already removed regulations that would interfere with this. But there are still some issues with regulations and CE. High cost of CE business models is also seen as a market barrier, as these prices could be lowered with governmental intervention. Example: A company wanted to recycle bakelite and found a company in Belgium which can recycle it, but they were not allowed to transport it over the border.
The circular economy - A new sustainability paradigm? What are the main conceptual differences between sustainability and the Circular Economy?
One of the main differences is the goals associated with the different concepts. For circular economy there is a consensus that the goal is a closed loop, where all resource input is eliminated together with waste and emission leakages. For sustainability the goals are often more open ended and is shifting in the literature, often shifting depending on the author and the agent in question. Another important difference is that while sustainability puts equal weight at benefiting the economy, the society at large and the environment, circular economy seems more focused on the economic actors within the system, although the environment seems to benefit from the use of CE. But some more selected differences are: - Who should influence: In CE governments, companies. In sustainability the priorities should be influenced by all stakeholders. - Who has responsibilities: In CE it is private businesses and regulators and policy makers who are responsible for the transition to a circular system. Within sustainability the responsibility is shared by all stakeholders, but most often not clearly defined.
Supply network collaborations in a circular economy: A case study of Swedish steel recycling. Recycling
Recycling is a key strategy in the transition to a circular economy (CE), as it maximizes the value and utility of materials from products before they reach end of life.
Systems thinking in Industrial dynamics Regimes
Regimes - Represent a set of shared beliefs among engineers and to describe trajectories of innovative processes in industrial sectors. - A socio-technical regime consists of three interlinked dimensions: a) the network of actors and social groups, b) formal, normative and cognitive rules and c) physical and technical elements. - Examples of formal rules are building regulations and laws, examples of normative rules are norms of behaviour, and examples of cognitive rules are guiding principles, how a problem formulation is made, belief systems and heuristics - A socio-technical regime affects development paths both for technicians and companies and can be compared with the concept innovation system.
The transformation to a circular economy: framing an evolutionary view Radical change can be viewed from several stances: institutional level, industrial structure, organizational strategies, and societal values and norms. Societal norms and behaviors
Societal norms and behaviors Societal norms and behaviors can have a significant influence on the transition to a circular economy (CE). Consumers' values and preferences can directly and indirectly impact the success of the CE at a system level. Understanding and changing societal expectations is therefore important for the transition to the CE. Consumers' awareness and behavior can be influenced by cultural factors and the dominant legal framework. Governments can play a role in promoting sustainable consumption through policy strategies such as consumption reduction and waste prevention. The concept of circular design can also be used to change consumer behavior. The flow of secondary materials can be influenced by cultural factors and the CE should be considered within temporal, spatial, and cultural contexts.
Systems thinking in Industrial dynamics Socio-technical systems
Socio-technical systems - Focuses on the interactions between the workers and the technology they used in their work. - By showing the importance of optimizing both the social and technical aspects of work, i.e. not only focusing on how to optimize each working operation but also including the quality of the workers' worklife, they provided a more holistic work design alternative to the reductionist Taylorism-approach that was customary at the time.
Supply network collaborations in a circular economy: A case study of Swedish steel recycling. Supply chains
Supply chains are typically viewed as linear systems containing information, material and monetary flows. But in reality it is often more complex than this → Supply networks.
Supply network collaborations in a circular economy: A case study of Swedish steel recycling. Supply networks and CE:
Supply networks are crucial in a transition to CE, but the main focus has been on material and product flows rather than the regenerative principles of a CE. In a CE, supply networks have a role of not only recovering products, materials and minimizing waste, but also any waste from a supply network should be used in another supply network. Drivers: access to knowledge, information sharing, governmental support, organizational supports Barriers: Corporate cultural mismatch, lack of alignment.
Systems thinking in Industrial dynamics There are two types of reverse salients
Sustaining reverse salients - are often identified as simple and obvious bottlenecks in the management and maintenance of the system. A sustaining reverse salient does not challenge the system's culture nor does it threaten the business model of the system. Sustaining reverse salients require conversative innovations as a solution, these are often produced internally within the organization. Disruptive reverse salients - are competence destroying. By this term we mean larger and more diffuse issues compared to the simpler ones mentioned above. If these disruptive reverse salients stay unidentified and if they are not handled, they can in some cases threaten the very existence of the infrasystem. Disruptive reverse salients require radical innovations, these are often created by external actors. A radical innovation may produce a competing system.
Systems thinking in Industrial dynamics
Systems thinking is a way to understand interconnected parts that form a complex whole. It includes both social and technical parts. A complex system is characterized by a high number of components & subsystems and high level of interactions between these parts.
The transformation to a circular economy: framing an evolutionary view Takeaways
Takeaways CE is seen as a strategy to meet sustainable development goals and is based on business models that replace the "end-of-life" concept with reducing, reusing, recycling, or recovering materials in production, distribution, and consumption process.
Dynamics in Swedish Industrial and Political history The First Phase 1850-1918
The First Phase 1850-1918 A number of liberal reforms were initiated in 1844. Along with a general liberalization Sweden introduced the right for any citizen to establish firms and free trade was introduced; import and export bans were lifted, and both foodstuffs and raw materials were completely duty free. A new banking law was added, which led to the establishment of new commercial banks. The banks attracted capital which was loaned to an expanding industry. The state also took on new commitments, which were financed by large borrowings abroad. These included development of communications, which improved dramatically from the mid-1800s. - A novelty was the electric telegraph. - Another novelty was the railroad. For telephony, as well as electricity, on the other hand the exploitation started almost invariably by local initiatives. - In 1880 the Stockholm Bell Telephone Company established the first telephone network in Sweden with just over one hundred subscribers. - In 1883, a competing telephone company was established, Stockholms Allmänna Telefonaktiebolag (the Stockholm Public Telephone Company). - The intense competition between the companies led to a rapid increase in the number of subscribers. In 1885, there were 5,000 telephone sets in Stockholm, which was more than in any other city in the world at that time! The liberal reforms, the freedom to start new companies, a political new order and free trade set, along with investments in infrastructure and a new banking law, the foundations for a belated but rapid industrialization in Sweden. But the market was characterized by rapid fluctuations in both demand and prices, which gave the whole industry a speculative character. Big profits and shortage of labor suddenly was replaced by bankruptcies and unemployment. In parallel many new successful export companies in the pulp and paper, steel and engineering industries were born during the second half of the 1800s. A new entrepreneurial capitalism flourished, which hardly resembled the traditional and stable social structure in Sweden. The industrialization meant that people moved from rural areas to towns and cities as well as from agriculture to industry. During the 19th century Sweden's population increased from just over 2 million to over 5 million despite a massive emigration of more than one million Swedes, primarily to America. A new working class emerged, which was free from the immediate and patriarchal control of their former landlords and masters who had compensated them in kind. However, the financial and social security had also disappeared with the increased freedom. But the increase in trade came to an abrupt end during World War I. During World War I and the years immediately following inflation rates had gone up. The prices quadrupled in 1913 to 1920. But the inflationary period was followed by a deep depression and a tough deflationary monetary policy, which led to prices again halved in two years.
Dynamics in Swedish Industrial and Political history The Second Phase 1918-1975
The Second Phase 1918-1975 Companies that during the war had borrowed money from the banks and issued new preference shares ended up in difficulties. They still had their big debts, but the assets no longer corresponded to purchase values. During 1920 to 1922 liquidations and bankruptcies succeeded each other in Swedish industry, which led to large transfers of ownership. Unemployment was widespread. In early 1922, a third of the members of LO (Sweden's combined blue collar union) were unemployed. In came new owners; commercial banks and financiers. The number of commercial banks had peaked in 1908 and through mergers they were much fewer after the war. It was therefore a relatively small number of dominant ownership spheres within the Swedish financial circles who came to answer for the reconstruction. In 1934 a very large part of the Swedish export industries was controlled by less than a dozen financial spheres. After World War I the profile of Swedish business leaders changed. You no longer became a CEO in a large company by starting or inheriting a business, but by educating yourself and making a white collar career to the profession of a business leader. After the mid-1930s industrial development was mostly about rationalization, restructuring and internationalization of existing businesses. More rarely, about creating or establishing new ventures. It was mainly within already established Swedish companies that one would come to pick up innovations and establish new product areas. There was an apparent consolidation also in the infrastructure area - Government took, through the establishment of Vattenfall in 1909, first responsibility for regional power generation and later also the deployment of a nationwide transmission grid. Government took an even greater responsibility for the railways. - In 1938 a decision was made on the nationalization of all private railways in Sweden. Swedish Rail (SJ) was then a national railway monopoly in the whole country. - Telegrafverket successively acquired all local phone associations and telephone companies. World War II was, in contrast to World War I, followed by increased economic activity. Swedish industry was blessed with increased orders. During the 1950s and 1960s Swedish industry harvested major export successes. Sweden's share of world trade rose almost dramatically; Sweden took the lead in terms of economic growth. In the late 1960s, Sweden was one of the world's richest countries and the Swedish welfare society attracted international attention. There was a national consensus that laid the foundations of the welfare society. The development was driven systematically by central representatives of government, industry and trade unions in the context of a very centrally and informally managed truly corporative social society. The export success of Swedish industry after World War II laid the foundation for full employment. There was a shortage of labor - not a lack of work. In consequence, there was almost total agreement in Sweden that it is desirable to streamline human labor in factories. The employers, the union movement and Social Democratic politicians all wanted to introduce a corporative version of Scientific Management. The most rational production methods were to be determined on objective grounds. In 1944, a verdict in the Labor Court (Arbetsdomstolen) stated that all piece rates in the engineering industry must be decided objectively. All engineering companies were thus compelled to employ time-study engineers, to determine - on objective grounds - which working methods were to be applied for a certain task and the time required performing that task. The Labor Court ́s verdict was entirely in line with the implications of the concept of the "policy of wage solidarity" and the principle of "equal pay for equal work" accepted at that time. One outcome of the application of the principle of "equal pay for equal work" was - quite intentionally - that export companies in industries which internationally paid high wages, such as the automotive industry, were subsidized, while the rug was systematically pulled from under companies in industries that internationally payed low wages, such as the clothing industry. Not only had the labor productivity come into focus, but also the mechanization and automation of production. The larger engineering corporations in Sweden generally coped very well with this transformation and they took the lead when digital electronics was introduced on the shop floors. The Swedish machine tool industry also was very competitive and, until the 1970s, it was one of the key Swedish industries. You could definitely argue that production engineering was an important developing block (Dahmén 1989) in Swedish industry after WW II. The corporative consensus also included an increased governmental interest in academic engineering research and education. During World War II government started to look upon engineering sciences as a national investment. Developing couples played important roles in post-war Sweden. - Each couple consisted of a public client and a private engineering company. - As mentioned earlier, after World War I the government assumed greater responsibility for the development and operation of the infra service systems in Sweden. The extension, expansion and modernization of the infra service systems involved major technical challenges and led to a very close relationship between public clients and the engineering corporations that supplied the technical input. - Developing couples also arose within the railroad sector. SJ developed a close and long-term technical cooperation both with ASEA in the electrification of railroads and with LM Ericsson in developing signaling systems and equipment used for control and security of railway traffic. - The most pronounced development couple, however, was the cooperation between Televerket and LM Ericsson. The collaboration between Ericsson and Televerket however differed somewhat from that in other developing couples. - There were also other developing couples of great significance, such as The Air Force and FMV (The Materiel Administration of Swedish Armed Services) as clients and engineering companies like Saab as suppliers. In the early 1970s, new forces were in motion under the idyllic and polished surface of the Swedish welfare society. They expressed a series of reactions against the established society. Protests, unrest and discontent also spread to the workplaces. Even if few people noticed, already in the early 1970s you could see the first signs of an upcoming crisis.
Dynamics in Swedish Industrial and Political history The Third Phase 1975-2015
The Third Phase 1975-2015 Wage-earner funds initiates great tensions - In 1975, the study, under the leadership of LO economist Rudolf Meidner, was presented. "The Meidner Plan" recommended the introduction of wage- earner funds. The plan proposed that 20 percent of a company's profits should be used to buy newly issued equity shares. This proposal entailed a gradual transfer of ownership from private individuals and institutions to collective entities governed by union-appointed directors. - In 1982 Olof Palme was forced, partly against his will, to make wage-earner funds one of the election's key issues. The Social Democrats won the election and they introduced a modified version of wage earner funds in 1983. A few years later, the funds were closed down. - When the ideas of wage-earner funds started to take shape in the beginning of the 1970s, it was the death knell for the government's earlier cooperation with industry. The tension between government and industry increased even more when government abandoned its former non-interventionist role on the labor market. In 1976, the Social Democrats lost the general election. After 44 years of uninterrupted government a liberal-conservative coalition. However, Sweden's economy was greatly unbalanced. A shrinking export industry could no longer finance government ́s galloping spending. As of 1987, for the nation of Sweden, many of its curves started to bend in the wrong direction. On an international scale, Sweden still had an extremely low unemployment rate, which was very much due to the expansion of the public sector and the growth of the automotive industry. The engineering industry in Sweden was also becoming internationalized. In the beginning of the 1980s, it was a Swedish export industry with the majority of its employees in Sweden. By the end of the decade, it was an international industry with most personnel abroad. In the beginning of the 1990s, a recession was waiting. It was magnified by Iraq's invasion of Kuwait in the summer of 1990. The industrial dynamics during the 1970s and 1980s, and the failures in state owned companies, made politicians in almost all parties hesitate towards governmental ownership in industry. From the beginning of the 1990s, Sweden's relationship to the European Community was an important issue in the growth debate in Sweden. As the vision of a common internal market took concrete form, it became increasingly clear that Sweden would join the European Union (EU). In the early 90's, a wave of deregulations in sectors such as transport, electricity, media, postal services and telecommunications were rolled out. A deregulation of the Swedish electricity industry was started in the 1990s. - A first step in the process was the corporatization of the Swedish state-owned utility Vattenfall in 1992. - The new regulation introduced competition on the electricity market in the generation and distribution of electricity. - The aim was to provide consumers with greater freedom of choice and better opportunities for putting pressure on costs and prices in the supply of electricity. Deregulations and privatizations of different state-owned monopolies have continued over time. - In 2009 Sweden's state-owned pharmacy monopoly, which was originally formed in 1969, ended. - A similar procedure followed in 2010 when the market for annual, compulsory vehicle control was opened for competition. - In addition, Swedish governments have, since the 1990s, experimented with boosting public-service efficiency in different sectors by allowing private actors to compete with publicly owned vendors on tax-financed markets. Many schools are now independently run, and in health care as well as child and elderly care private management is a growing - and frequently debated trend. The deregulation and privatization in the public sector was accompanied by a similar trend in many industries. Already in the mid-1980s, many Swedish incumbents started to concentrate on their core activities. - Outsourcing, the hiving off of activities that are considered peripheral, did affect simple activities just as much as advanced or complex ones. The deregulation, internationalization and privatization broke up most developing couples in Sweden. On March 6, 2000 the index on the Stockholm stock exchange had been all time high. - One important reason why the market failed was that most European countries chose to allocate the 3G licenses through auctions. - The nature of the auctions was designed to increase competitive pressure on bidders by offering fewer licenses than the number of operators likely to bid. The tele operators were put in a difficult position, because if they lost the auction they were out of business in the next phase. They took risks, made high bids, and ended up with large debts. However, when they got the licenses they could not afford to buy and install the systems. When the bubble busted, in March 2000, it seems as if the explosion spread many seeds, which found good soil for new businesses and new ventures. However, at the same time it changed the conditions for governmental efforts to support demand-driven research and innovations in Swedish industry. - Before 2000, incumbents like Ericsson, Televerket and ABB could set the agenda for both higher educations in engineering sciences and applied research in technical universities as well as in sectorial research institutes. - However, when companies like ABB and Ericsson decided to concentrate their business and close down their factories the existing research in fields like microelectronics and optics lost their former demanding "customers", who set the agenda for demand-driven applied research. The industrial dynamics in modern industry differs from the dynamics a century ago. - In the old days, Henry Ford was the role model for the recipe for success, to merge companies, to acquire suppliers and distributers in order to cover the entire chain from beginning to end in one single corporation. - Today many companies concentrate on their core business and choose to procure services that they previously ran in-house. This leads to a more diversified business world and to companies that are more specialized. Specialized companies, which must interact with one another in different business systems. The interaction is organized by spiders, who build different kinds of networks between more or less autonomous actors in the modern business world. GIertz differentiate between spiders of three different kinds; contractors, replicators and brokers - When companies concentrate on their core business, they partly turn from being employers to being contractors. As contractors, they engage different service companies, contract manufactures, consultants, freelancers, suppliers and subcontractors to produce specific tasks. - Replicating organizations, which are replicating a business model to several geographical locations, have during the last decades become a dominant type of organization in many different industries. Replicating organizations can be organized in four different ways. --In some cases, the replicator at the top - the central node in a replicating organization - owns both the business concept and all local branches. The US retail chain Walmart, with more than two million employees, is such an in-house retail chain. --In franchise organizations, the replicator at the top is a franchiser that owns the business concept but gives local entrepreneurs, franchisees, the rights to exploit the concept on a certain local market. --In federative organizations similar local companies voluntarily get together to set up a replicator as common central node. Together they can decide upon a common brand and set up common purchasing and marketing organizations. --In recent years a forth kind of replicating organizations, using internet and sharing economy, have been set up. Thus, organizations like Uber and Airbnb compete with other more traditional replicating organizations. This forth kind of replicating organizations work more like brokers than traditional replicating organizations. --Some Swedish and Nordic replicating organization have been very successful on the international and global market during the last decades. Some are found among retail chains, i.e. H&M and Ikea. Both companies have built up their own product range. On the supply side, they have worked as contractors buying manufacturing from many different suppliers. On the sales side, on the other hand, both companies own almost all their stores in-house in their global replicating organizations. -The third kind of spiders, brokers, serves as intermediaries in transactions involving capital, goods or services, by matching a defined supply from sellers with a corresponding demand from potential buyers. During the last fifteen years globalization has fundamentally changed the rules and action opportunities for politicians. The financial market is global, both manufacturing and service companies operate in a global market. Globalization has also opened for efficiency improvements and structural changes in almost all industries.
The circular economy - A new sustainability paradigm? What the article is about
The article investigates the relationship between circular economy and sustainability and then further looks into the differences and similarities between the two concepts
The circular economy - A new sustainability paradigm? How is the Circular Economy conceptually related to sustainability?
The authors found in literature that CE sometimes is viewed as a condition for sustainability, sometimes as a beneficial relationship and sometimes as a trade-off. They further broke this down into 8 different types of relationships.
Systems thinking in Industrial dynamics The basic idea of the LTS perspective
The basic idea of the LTS perspective is that technological development cannot be analysed properly by only investigating the individual component or the different sub-systems. Here the car (the artefact/sub-system) and the road transport infrasystem is a good example. When we buy a car or sit behind the wheel we become, as a researcher has put it, not only drivers, but we are "buying in to a complex road-, energy supply-, spare parts-, maintenance-, registration- and insurance-, monitoring- and legal system". When a system grows and especially in the expansion phase it can give the impression of autonomous growth and system expansion seems inevitable. From a market perspective system growth can be understood through its positive system externalities. An infrasystem gets increasingly valuable when more people get access to systems services and components - it is not very useful to be the only one having a telephone. After the growth phase, the mature system is deeply embedded in society and not easily changed or transformed. The large mass of an LTS consist of the physical infrastructure (roads, grids, pipes, tracks, etc.), the organizations and institutions created for support, laws and regulations and not the least financial and industrial corporations and individuals (engineers, scientist, politicians), with huge vested interests in the survival and expansion of the system. Thus, large infrasystems develop according to a certain path or trajectory. The inertia acquired by the growing systems creates a "path dependence". The earlier choices by system actors, and also "learning by doing", influence the possibilities given to future actors.
Mystery of the wheelie suitcase: how gender stereotypes held back the history of invention Examples of similar innovations, which were held back by societal norms:
The first electric cars in the 1800 were seen as "feminine", non manly, since they were slower and less dangerous. Vegan meat options, still more women who eat vegan substitutes, as it is seen as non-manly not to eat meat.
Eric Dahmén and industrial dynamics
The main theory in this section is the development blocks (DB). DB is defined by Eric Dahmén as a set of factors in industrial development which are closely interconnected and interdependent. It can often be seen as an industry, or development around some specific technology or product, like the energy block, the transportation block etc. These blocks can often also be viewed as systems from Hughe's perspective.
This is Industrial Dynamics The meso level
The meso level - the level of technological/innovation systems and industrial structures
Barriers to the Circular Economy: Evidence From the European Union (EU) Cultural barriers
The study showed that cultural barriers are the most common barrier, both from a consumer perspective, as well as a company culture perspective. Consumers: They change their minds too quickly. Products last longer than the fashion trend. Company culture: CE is often restricted to corporate social responsibility and/or environmental departments of companies, but not talked about in departments such as finance or operations. CE appears to be a niche discussion among sustainable development professionals in many companies. These findings show that many companies choose to embrace CE but it has yet to actually be implemented in the supply chain.
Barriers to the Circular Economy: Evidence From the European Union (EU) Technological barriers
This study showed that these are not core barriers. The technology is there, it just has to be implemented.
Systems thinking in Industrial dynamics Tightly coupled and loosely coupled systems.
Tightly coupled systems - The connections between system components or sub-systems (technical and institutional) are very strong and especially designed for system purposes. - The railroad and the electrical system are examples of this type. They are centrally built, planned and managed, access for other operators is very limited, the technical standardization of components is high and they have a top-down perspective as distribution systems of goods. - The system builder or the system manager has one overarching goal: To avoid technical and institutional mismatch in the system - to align system components within the system. - A tightly coupled system is highly sensitive to disturbance, if one component fails the whole system breaks down (low redundancy). Therefore "load factor management" is important to avoid stress during peak usage and distributing the utilization of the system to reach economic efficiency (economic mix). Loosely coupled systems - Exhibits a lower level of the characteristics mentioned, with sea transport as one example. The road system would be somewhere in between the two system types. Historically it has moved from a loosely coupled system towards a more tightly coupled system, especially since the introduction of the automobile, and even more so with the introduction of information and communication technologies (ICT), but it is still not a tightly coupled as the railroad or the electric system. Advancements in ICT has transformed systems management radically. In some systems, like electricity, ICT has opened up the tight physical coupling between components. Auto-mobility and Air Flight has on the other hand become more tightly coupled systems with the introduction of ICT.
A comprehensive review of industrial symbiosis Urban symbiosis
Urban symbiosis: Urban symbiosis is a strategy to create a more efficient metabolism of cities. Similar to industrial symbiosis, urban symbiosis focuses on sharing of resources but instead of collaborations between sectors, urban symbiosis focuses on co-developments and use of secondary resources between diverse regions. Both Industrial and Urban Symbiosis aims to improve resource efficiency through local/regional collaboration. Leads to minimization of waste, and reducing the need for raw materials.
A comprehensive review of industrial symbiosis Urbanization
Urbanization: the process of population movement from 'smaller' areas (the country) to urban centers (larger cities), and the corresponding development of these urban centers (expansion of cities). Urbanization is mostly driven by economic factors, such as the availability of jobs in larger cities. It is connected to industrialization, as it can lead to development of infrastructure such as transportation systems and housing. It can have impacts on the economy, society and the environment. Although, the rise in urbanization has lead to increased carbon emissions.
The circular economy - A new sustainability paradigm? Define sustainability
We define sustainability as the balanced integration of economic performance, social inclusiveness, and environmental resilience, to the benefit of current and future generations.
The circular economy - A new sustainability paradigm? Define circular economy
We define the Circular Economy as a regenerative system in which resource input and waste, emission, and energy leakage are minimised by slowing, closing, and narrowing material and energy loops. This can be achieved through long-lasting design, maintenance, repair, reuse, remanufacturing, refurbishing, and recycling.
Barriers to the Circular Economy: Evidence From the European Union (EU) Study conducted with the question
What are the main barriers that derail or slow down the transition towards a CE in the EU? Method: Desk research, interviews and survey.
This is Industrial Dynamics What is Industrial Dynamics?
What is Industrial Dynamics? - In ID the emphasis is on dynamics: seeking to identify and understand the reasons why things are as they are. - ID focuses on the causes (driving forces) of economic transformation and growth, and on understanding the underlying processes of transformation, not just the outcomes. - The transformation is viewed in its wider historical, institutional, technological, social, political, and geographic context. This means that the analysis often has to transcend disciplinary boundaries and involve multiple dimensions and levels. - Economic growth can be described at the macro level, but it can never be explained at that level.
Supply network collaborations in a circular economy: A case study of Swedish steel recycling. Example of Swedish steel production: Vertical collaboration:
relationship between buyer and supplier. Ex: Steel scrap suppliers match the buyers needs to a high degree. But there is an issue with the quality of the steel scraps, as the quality can vary a lot and the buyer will not know the quality until the scraps have already been delivered. Together with the procurement intermediary, the supplier and buyer manage to reach an agreement where the buyer pays for the quality they think they will get. However, this could be solved better if the scrap dealers had a better vertical collaboration with the industry from which the scraps originate. The motivation for vertical collaboration is quality control.
