The circular economy as a complex adaptive system

Circular economy systems (CES) constitute of physical flows of materials and energy and the actors, organizations and communities affected by and affecting the physical flows. The flows are inter-organizational, inter-sectoral and international. They cross administrative, organizational and national boundaries and borders. CES qualify as complex adaptive systems (CAS). Self-organization, turbulence and surprise are common characteristics in CAS. However, general patterns of behaviour are visible. The chapter shows that four basic CAS principles/properties are fruitful for CE development: Material cycles (and energy cascades), diversity in the actors involved, interdependency in their relations and locality in the system’s products’ life cycles. Amplifying feedback loops among the four principles, i.e., development where the four principles are mutually reinforcing are observed. The understanding of the various types of relationships in CE systems may mitigate the risks of problem displacement and problem shifting and contribute to a complex adaptive sustainable system.