Systemic Change: The Complexity of Business in a Circular Economy

The transition to a circular economy is often associated with appropriate business models, which should, among other things, help replace the conventional `end-of-life? concept regarding commodities with restoration and environmental design. This systemic change appears to be closely linked to the...

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Main Author: Hans Wiesmeth
Format: Article
Language:English
Published: National Research University Higher School of Economics 2020-12-01
Series:Foresight and STI Governance
Subjects:
Online Access:https://foresight-journal.hse.ru/article/view/19151
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author Hans Wiesmeth
author_facet Hans Wiesmeth
author_sort Hans Wiesmeth
collection DOAJ
description The transition to a circular economy is often associated with appropriate business models, which should, among other things, help replace the conventional `end-of-life? concept regarding commodities with restoration and environmental design. This systemic change appears to be closely linked to the waste hierarchy: prevention of waste, reuse of old commodities, and recycling of waste. The paper shows that there are various problems for businesses to maintain the waste hierarchy in the context of a circular economy. The intrinsic nature of environmental commodities and, in particular, societal path dependencies present some challenges. These societal path dependencies are related to the benefits of decentralized decision-making in a market economy. In the short term, appropriate environmental policies can help alleviate some of these problems, but in the long term, these societal path dependencies need to be reoriented. The paper contains practical examples of all issues raised.
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series Foresight and STI Governance
spelling doaj-art-dbc62ef195de4c45b275d671130832012025-08-20T03:17:02ZengNational Research University Higher School of EconomicsForesight and STI Governance2500-25972020-12-0114410.17323/2500-2597.2020.4.47.60Systemic Change: The Complexity of Business in a Circular EconomyHans Wiesmeth0Saxon Academy of Sciences and Humanities , Karl-Tauchnitz-Str. 1, 04107 Leipzig, Germany; Graduate School of Economics and Management, Ural Federal University, 19 Mira Street, Yekaterinburg, 620002, Russian Federation; Dresden Technical University, 01062 Dresden, Germany The transition to a circular economy is often associated with appropriate business models, which should, among other things, help replace the conventional `end-of-life? concept regarding commodities with restoration and environmental design. This systemic change appears to be closely linked to the waste hierarchy: prevention of waste, reuse of old commodities, and recycling of waste. The paper shows that there are various problems for businesses to maintain the waste hierarchy in the context of a circular economy. The intrinsic nature of environmental commodities and, in particular, societal path dependencies present some challenges. These societal path dependencies are related to the benefits of decentralized decision-making in a market economy. In the short term, appropriate environmental policies can help alleviate some of these problems, but in the long term, these societal path dependencies need to be reoriented. The paper contains practical examples of all issues raised. https://foresight-journal.hse.ru/article/view/19151circular economytechnological innovationwaste hierarchysocietal path dependenciesdecentralized decision-makingnew business models
spellingShingle Hans Wiesmeth
Systemic Change: The Complexity of Business in a Circular Economy
Foresight and STI Governance
circular economy
technological innovation
waste hierarchy
societal path dependencies
decentralized decision-making
new business models
title Systemic Change: The Complexity of Business in a Circular Economy
title_full Systemic Change: The Complexity of Business in a Circular Economy
title_fullStr Systemic Change: The Complexity of Business in a Circular Economy
title_full_unstemmed Systemic Change: The Complexity of Business in a Circular Economy
title_short Systemic Change: The Complexity of Business in a Circular Economy
title_sort systemic change the complexity of business in a circular economy
topic circular economy
technological innovation
waste hierarchy
societal path dependencies
decentralized decision-making
new business models
url https://foresight-journal.hse.ru/article/view/19151
work_keys_str_mv AT hanswiesmeth systemicchangethecomplexityofbusinessinacirculareconomy