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Us before me: A group level approach to the circular economy

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  • Figge, Frank
  • Thorpe, Andrea Stevenson
  • Good, Jason

Abstract

A more efficient use of natural resources is considered a necessary condition for their sustainable use. When firms use resources circularly they aim to contribute to using resources more eco-efficiently, and thus in a more sustainable way than when adopting more linear systems. Eco-efficiency in linear systems can be determined by aggregating each individual instance of resource use. However, in circular systems this approach is problematic, as it cannot capture the dynamics of resource use that unfurl between firms that contribute to eco-efficiency. In other words, we argue that in circular systems, eco-efficiency overall is more than the sum of the eco-efficiencies of individual firms. Moreover, we counterintuitively suggest that within circular economy systems, selecting only highly eco-efficient firms can actually reduce rather than increase the degree of eco-efficiency overall. Using a lens of multi-level selection theory, we build our argument through a series of numerical examples, and in conclusion show how the assessment and management of resources must be moved from the individual to the group level.

Suggested Citation

  • Figge, Frank & Thorpe, Andrea Stevenson & Good, Jason, 2021. "Us before me: A group level approach to the circular economy," Ecological Economics, Elsevier, vol. 179(C).
    • Handle: RePEc:eee:ecolec:v:179:y:2021:i:c:s092180092030080x
    DOI: 10.1016/j.ecolecon.2020.106838
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    References listed on IDEAS

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    Cited by:

    1. Figge, Frank & Thorpe, Andrea Stevenson, 2023. "Circular economy, operational eco-efficiency, and sufficiency. An integrated view," Ecological Economics, Elsevier, vol. 204(PB).
    2. Figge, Frank & Thorpe, Andrea Stevenson & Manzhynski, Siarhei, 2021. "Between you and I: A portfolio theory of the circular economy," Ecological Economics, Elsevier, vol. 190(C).
    3. Frank Figge & Andrea Stevenson Thorpe & Siarhei Manzhynski & Melissa Gutberlet, 2022. "The us in reUSe. Theorizing the how and why of the circular economy," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2741-2753, September.
    4. Gutberlet, Melissa & Preuss, Lutz & Thorpe, Andrea Stevenson, 2023. "Macro level matters: Advancing circular economy in different business systems within Europe," Ecological Economics, Elsevier, vol. 211(C).
    5. Julian Kirchherr & Andrea Urbinati & Kris Hartley, 2023. "Circular economy: A new research field?," Journal of Industrial Ecology, Yale University, vol. 27(5), pages 1239-1251, October.
    6. J. Rincón-Moreno & M. Ormazábal & C. Jaca, 2022. "Stakeholder Perspectives in Transitioning to a Local Circular Economy: a Case Study in Spain," Circular Economy and Sustainability, Springer, vol. 2(2), pages 693-711, June.
    7. Frank Figge & Andrea Stevenson Thorpe & Siarhei Manzhynski, 2022. "Value creation and the circular economy: A tale of three externalities," Journal of Industrial Ecology, Yale University, vol. 26(5), pages 1690-1700, October.
    8. Bag, Surajit & Dhamija, Pavitra & Bryde, David J. & Singh, Rajesh Kumar, 2022. "Effect of eco-innovation on green supply chain management, circular economy capability, and performance of small and medium enterprises," Journal of Business Research, Elsevier, vol. 141(C), pages 60-72.
    9. Roland Somlai, 2022. "Integrating decision support tools into businesses for sustainable development: A paradoxical approach to address the food waste challenge," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1607-1622, May.
    10. Fabiana Liar Agudo & Barbara Stolte Bezerra & José Alcides Gobbo & Luis Alberto Bertolucci Paes, 2022. "Unfolding research themes for industrial symbiosis and underlying theories," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1682-1702, December.

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