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Exploiting the Potential of Public Procurement: Opportunities for Circular Economy

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  • Katriina Alhola
  • Sven‐ Olof Ryding
  • Hanna Salmenperä
  • Niels Juul Busch

Abstract

The objective of a circular economy (CE) is to maintain the value of products, materials, and resources in the economy by closing material loops and minimizing waste generation. In recent years, the role of public procurement has been recognized as an important, but as yet not fully exploited, opportunity by cities and municipalities in their transition toward circular societies. This study analyzed public procurement opportunities to promote CE. Different approaches and examples of circular public procurement were identified using case studies. In addition, opportunities to promote CE through sustainable and green public procurement policy were identified analyzing predefined sustainable or green public procurement criteria. The study concludes that public procurement can promote CE and related business models by setting criteria and requirements for the extension of product life spans, efficiency and/or intensity of use, and efficient cycling of biological or technical materials, as well as for the securing of clean and nonrisky cycles. Circular procurement can occur through the procurement of better‐quality products in circular terms, the procurement of new circular products, the use of business concepts that support the CE, and investments in circular ecosystems. Several sectors and product groups were identified as having potential for circular procurement, such as construction, waste, and wastewater management, transportation, food, and catering, furniture, and textiles. The study also suggests that the use of certain tools, such as performance‐based procurement, life cycle approach, and life cycle costing, as well as criteria concerning reuse and recycling of materials, could promote circular procurement. Market dialogue and cooperation between procurers and actors in the supply chains are important for the future development of circular procurement.

Suggested Citation

  • Katriina Alhola & Sven‐ Olof Ryding & Hanna Salmenperä & Niels Juul Busch, 2019. "Exploiting the Potential of Public Procurement: Opportunities for Circular Economy," Journal of Industrial Ecology, Yale University, vol. 23(1), pages 96-109, February.
    • Handle: RePEc:bla:inecol:v:23:y:2019:i:1:p:96-109
    DOI: 10.1111/jiec.12770
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    Cited by:

    1. Mathivathanan, Deepak & Mathiyazhagan, K. & Khorana, Sangeeta & Rana, Nripendra P. & Arora, Bimal, 2022. "Drivers of circular economy for small and medium enterprises: Case study on the Indian state of Tamil Nadu," Journal of Business Research, Elsevier, vol. 149(C), pages 997-1015.
    2. Zhang, Zhaowen & Jiang, Yaohui, 2022. "Can green public procurement change energy efficiency? Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 113(C).
    3. George Lăzăroiu & Luminița Ionescu & Cristian Uță & Iulian Hurloiu & Mihai Andronie & Irina Dijmărescu, 2020. "Environmentally Responsible Behavior and Sustainability Policy Adoption in Green Public Procurement," Sustainability, MDPI, vol. 12(5), pages 1-12, March.
    4. Edler, Jakob, 2023. "Demand, public procurement and transformation," Discussion Papers "Innovation Systems and Policy Analysis" 79, Fraunhofer Institute for Systems and Innovation Research (ISI).
    5. German Arana‐Landin & Waleska Sigüenza & Beñat Landeta‐Manzano & Iker Laskurain‐Iturbe, 2024. "Circular economy: On the road to ISO 59000 family of standards," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1977-2009, May.
    6. Jakob Edler, 2023. "Demand, public procurement and transformation," MIOIR Working Paper Series 2023-03, The Manchester Institute of Innovation Research (MIoIR), The University of Manchester.
    7. Emilio Abad-Segura & Ana Batlles-delaFuente & Mariana-Daniela González-Zamar & Luis Jesús Belmonte-Ureña, 2021. "Implications for Sustainability of the Joint Application of Bioeconomy and Circular Economy: A Worldwide Trend Study," Sustainability, MDPI, vol. 13(13), pages 1-24, June.
    8. Ioannis E. Nikolaou & Nikoleta Jones & Alexandros Stefanakis, 2021. "Circular Economy and Sustainability: the Past, the Present and the Future Directions," Circular Economy and Sustainability, Springer, vol. 1(1), pages 1-20, June.
    9. Hossain, Md. Uzzal & Ng, S. Thomas & Antwi-Afari, Prince & Amor, Ben, 2020. "Circular economy and the construction industry: Existing trends, challenges and prospective framework for sustainable construction," Renewable and Sustainable Energy Reviews, Elsevier, vol. 130(C).
    10. Jose Torres-Pruñonosa & Miquel Angel Plaza-Navas & Francisco Díez-Martín & Albert Beltran-Cangrós, 2021. "The Intellectual Structure of Social and Sustainable Public Procurement Research: A Co-Citation Analysis," Sustainability, MDPI, vol. 13(2), pages 1-33, January.
    11. Marcos Ferasso & Tatiana Beliaeva & Sascha Kraus & Thomas Clauss & Domingo Ribeiro‐Soriano, 2020. "Circular economy business models: The state of research and avenues ahead," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3006-3024, December.
    12. Elena Simina Lakatos & Geng Yong & Andrea Szilagyi & Dan Sorin Clinci & Lucian Georgescu & Catalina Iticescu & Lucian-Ionel Cioca, 2021. "Conceptualizing Core Aspects on Circular Economy in Cities," Sustainability, MDPI, vol. 13(14), pages 1-21, July.
    13. Zerbino, Pierluigi & Stefanini, Alessandro & Aloini, Davide & Dulmin, Riccardo & Mininno, Valeria, 2021. "Curling linearity into circularity: The benefits of formal scavenging in closed-loop settings," International Journal of Production Economics, Elsevier, vol. 240(C).
    14. Peter Adjei‐Bamfo & Hadrian Geri Djajadikerta & Ferry Jie & Kerry Brown & Reza Kiani Mavi, 2023. "Public procurement for innovation through supplier firms' sustainability lens: A systematic review and research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 387-407, January.
    15. Takuro Miyamoto & Naonari Yajima & Takahiro Tsukahara & Toshi H. Arimura, 2020. "Advancement of Green Public Purchasing by Category: Do Municipality Green Purchasing Policies Have Any Role in Japan?," Sustainability, MDPI, vol. 12(21), pages 1-24, October.
    16. Christopher Kennedy & Reid Lifset, 2020. "Winners of the 2018 Graedel Prizes: The Journal of Industrial Ecology best paper prizes," Journal of Industrial Ecology, Yale University, vol. 24(2), pages 268-270, April.
    17. Sofia Lingegård & Malena I. Havenvid & Per-Erik Eriksson, 2021. "Circular Public Procurement through Integrated Contracts in the Infrastructure Sector," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    18. Genovese, P.V. & Zoure, A.N., 2023. "Architecture trends and challenges in sub-Saharan Africa's construction industry: A theoretical guideline of a bioclimatic architecture evolution based on the multi-scale approach and circular economy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 184(C).
    19. Michal Plaček & Cristina del Campo & Vladislav Valentinov & Gabriela Vaceková & Markéta Šumpíková & František Ochrana, 2022. "Gender Heterogeneity and Politics in Decision-Making About Green Public Procurement in the Czech Republic," Politics and Governance, Cogitatio Press, vol. 10(3), pages 239-250.
    20. Wang, Jason X. & Burke, Haydn & Zhang, Abraham, 2022. "Overcoming barriers to circular product design," International Journal of Production Economics, Elsevier, vol. 243(C).
    21. Paweł Nowicki & Marek Ćwiklicki & Piotr Kafel & Janusz Niezgoda & Magdalena Wojnarowska, 2023. "The circular economy and its benefits for pro‐environmental companies," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4584-4599, November.
    22. Plaček, Michal & del Campo, Cristina & Valentinov, Vladislav & Vaceková, Gabriela & Šumpíková, Markéta & Ochrana, František, 2022. "Gender heterogeneity and politics in decision-making about green public procurement in the Czech Republic," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 10(3), pages 239-250.
    23. Marius Langseth & Helene Tronstad Moe, 2022. "Driving through dense fog: a study of the effects and control of sustainable public procurement of electric cars," Environment Systems and Decisions, Springer, vol. 42(4), pages 572-585, December.
    24. Meili, Rahel & Stucki, Tobias, 2023. "Money matters: The role of money as a regional and corporate financial resource for circular economy transition at firm-level," Research Policy, Elsevier, vol. 52(10).

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