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The Ecological Criteria of Circular Growth and the Rebound Risk of Closed Loops

Author

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  • Balint Horvath

    (Climate Change Economics Research Centre, Szent István University, Páter Károly 1, 2100 Godollo, Hungary)

  • Miriam Bahna

    (Doctoral School of Management and Business Administration, Szent István University, Páter Károly 1, 2100 Godollo, Hungary)

  • Csaba Fogarassy

    (Climate Change Economics Research Centre, Szent István University, Páter Károly 1, 2100 Godollo, Hungary)

Abstract

The implementation practices of the circular economy (CE) put a strong emphasis on preventing material losses in economic processes. The general interpretation of the concept focuses on closing technological and biological cycles by reintegrating end-of-life products into production and consumption systems. Thus, “closed loops” have become a trademark of circular transition. However, this limited perception fails to cover the essence of the CE. Besides closure, the utility of material loops can be prolonged, and a conscious consumer attitude may even prevent the creation of unnecessary material flows. This paper aims at proving that the preference of closed loops would result in deadweight losses in the long run. The conducted analysis ranks EU member states according to the most anticipated material flow indicators. Then, the study presents a new methodology to measure circular efficiency based on the available ecological capacity of the countries. The outcomes show that the poorly performing actors are in fact not far from a sustainable operation. Meanwhile, the countries with the most efficient material flow values present the widest development gap to reach the ideal level of circularity.

Suggested Citation

  • Balint Horvath & Miriam Bahna & Csaba Fogarassy, 2019. "The Ecological Criteria of Circular Growth and the Rebound Risk of Closed Loops," Sustainability, MDPI, vol. 11(10), pages 1-15, May.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:10:p:2961-:d:233995
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    2. Kalkabayeva Gaukhar & Aibot? Rakhmetova & Marina Assanova, 2021. "Financing of Eco-innovations: Sources and Trends in Kazakhstan," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 173-179.
    3. Gustavo Pineiro-Villaverde & María Teresa García-Álvarez, 2020. "Sustainable Consumption and Production: Exploring the Links with Resources Productivity in the EU-28," Sustainability, MDPI, vol. 12(21), pages 1-13, October.
    4. S.M. Mizanur Rahman & Junbeum Kim & Gilles Lerondel & Youcef Bouzidi & Laure Clerget, 2019. "Value Retention Options in Circular Economy: Issues and Challenges of LED Lamp Preprocessing," Sustainability, MDPI, vol. 11(17), pages 1-20, August.
    5. Csaba Fogarassy & David Finger, 2020. "Theoretical and Practical Approaches of Circular Economy for Business Models and Technological Solutions," Resources, MDPI, vol. 9(6), pages 1-9, June.
    6. Luca Adami & Marco Schiavon, 2021. "From Circular Economy to Circular Ecology: A Review on the Solution of Environmental Problems through Circular Waste Management Approaches," Sustainability, MDPI, vol. 13(2), pages 1-20, January.
    7. Konrád Kiss & Csaba Ruszkai & Katalin Takács-György, 2019. "Examination of Short Supply Chains Based on Circular Economy and Sustainability Aspects," Resources, MDPI, vol. 8(4), pages 1-21, September.
    8. Armand Kasztelan, 2020. "How Circular Are the European Economies? A Taxonomic Analysis Based on the INEC (Index of National Economies’ Circularity)," Sustainability, MDPI, vol. 12(18), pages 1-11, September.
    9. Luiz C. Terra dos Santos & Adrielle Frimaio & Biagio F. Giannetti & Feni Agostinho & Gengyuan Liu & Cecilia M. V. B. Almeida, 2023. "Integrating Environmental, Social, and Economic Dimensions to Monitor Sustainability in the G20 Countries," Sustainability, MDPI, vol. 15(8), pages 1-18, April.

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