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Circular Economy in Industry 4.0

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A special issue of Sustainability (ISSN 2071-1050).

Deadline for manuscript submissions: closed (30 June 2020) | Viewed by 151267

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Prof. Dr. Tsai-Chi Kuo

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Guest Editor

Department of Industrial Systems and Engineering, Chung Yuan Christian University, Taoyuan City, Taiwan
Interests: green design; production plan and control; safety, health & environment management

Prof. Dr. Raymond R. Tan

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Guest Editor

Department of Chemical Engineering, De La Salle University, Manila 0922, Philippines
Interests: process integration; mathematical programming; machine learning; carbon management
Special Issues, Collections and Topics in MDPI journals

Prof. Dr. Ming-Lang Tseng

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Guest Editor

Institute of Innovation and Circular Economy, Asia University, Taichung 41354, Taiwan
Interests: corporate sustainability; sustainable supply chain management; supply chain management; operations management
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Prof. Dr. Kimhua Tan

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Guest Editor

Department of Operations Management and Information Systems, Nottingham University, Nottingham NG7 2RD, UK
Interests: lean management; operations strategy; decision making; supply chain risk management
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Over the past decade, there has been a clear trend in promoting sustainable production and consumption (SPC)considering the role of supply chain networks in sustainability. Circular economy has been embedded into Japan and Europe governmental policies, with Japan and Europe. The European Commission’s Circular Economy Roadmap argues that “closing the loop” on linear product life cycles of make, use and discard, and transform them into varying loops of re-use, repair, refurbish and recycle, is a key strategy for competitive growth. Especially, the Japanese government introduced material-cycle society vision based on the reduce, reuse, and recycle (3Rs) principle. Elia suggested as circular product design and production, business models, cascade/reverse skills, cross-cycle and cross-sector collaboration for a circular economy activities.

Tseng addressed Industry 4.0 tools, cyber-physical systems, the Internet of Things (IoT), cloud computing, and big data driven analysis, drive the deployment of a new generation of Circular initiatives. However, the sustainability issue is around the circular economy and industry 4.0. For example, IoT application has been used in mobile taxis to quickly respond to customer needs. The IoT concept and techniques are also being employed in manufacturing to reduce energy consumption during design, production, and service process. Corporate intends to reduce the total cost of provided services for residents By using cloud computing model in mobility and transportation management systems. Singh used cloud computing technologies to calculate carbon footprint in beef supply chain. Gebler showed that 3D printing could reduce carbon emissions. Still, big data is to use and helps the corporates to understand their sustainability performance. The core issues are using big data to create values for corporate while reduce risks.

The artificial intelligence has been implemented in renewable energy and electrical energy to achieve better efficiency to arrive the circular economy. The main advantage of artificial intelligence is to forecast energy consumption and optimize the energy system. Hence, there is a need to explore what is the circular economy in Industry 4.0 era. This special issue is interested to include the topics as follows:

Cyber-physical systems and circular economy;
Internet of things (IoT) and circular economy ;
Cloud computing and circular economy;
Smart factories and circular economy ;
Big data driven analysis and circular economy;
Artificial intelligence and circular economy ;
Others

Prof. Tsai-Chi Kuo
Prof. Raymond G. Tan
Prof. Ming-Lang Tseng
Prof. Kimhua Tan
Guest Editors

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Keywords

Circular Economy
Sustainable Consumption and Production
Industry 4.0
Responsible Consumption and Production

Published Papers (12 papers)

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Research

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22 pages, 2699 KiB

Open AccessArticle

Circular Economy Model Enhanced by Intelligent Assets from Industry 4.0: The Proposition of an Innovative Tool to Analyze Case Studies

by Jessica Rossi, Augusto Bianchini and Patricia Guarnieri

Sustainability 2020, 12(17), 7147; https://doi.org/10.3390/su12177147 - 1 Sep 2020

Cited by 50 | Viewed by 6279

Abstract

Although the circular economy (CE) is recognized as a source of value creation, there is a huge gap between the vast concept of CE and its practical applications. Particularly, the lack of information and performance indicators, in terms of economic, environmental and social aspects, does not allow for the assessment of the level of circularity of the products, processes or companies. Further development of other circular activities can be limited for this reason. In addition, intelligent assets arising with the digital transformation within the “Fourth Industrial Revolution (I4.0)” can support CE to provide these lacking aspects. Thus, the objective of this paper is to highlight how and how much the circular business models are enhanced by intelligent assets from I4.0, considering several case studies found in the literature, and through the application of an assessment tool with secondary data from the selected case studies. According to the tool, the CE principles are extended to the entire product lifecycle, from product design to product utilization, within the transition to novel business strategies. Two of the considered case studies are represented in the assessment tool, as examples, to demonstrate how intelligent assets can support circular economy in the design, assessment and comparison of circular initiatives. The visualization of existing innovative business models based on CE and enhanced by intelligent assets allows for the complete and effective evaluation of materials, products, assets and processes, due to the fact that information and indicators can be collected to measure and monitor circular efficiency. Full article

(This article belongs to the Special Issue Circular Economy in Industry 4.0)

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16 pages, 1022 KiB

Open AccessArticle

The Influential Factors of Consumers’ Sustainable Consumption: A Case on Electric Vehicles in China

by Chun Yang, Jui-Che Tu and Qianling Jiang

Sustainability 2020, 12(8), 3496; https://doi.org/10.3390/su12083496 - 24 Apr 2020

Cited by 36 | Viewed by 8553

Abstract

As one of the internationally recognized solutions to environmental problems, electric vehicles feature zero direct emissions and can reduce dependence on petroleum. An increasing number of countries have attached importance to the electric vehicle and developed it, and it is predicted that it will become a main force in the transportation system. Hence, it is necessary to explore the factors that drive consumers to buy electric vehicles. This study analyzes the factors that influence the consumer’s intention to buy electric vehicles and tests the relationship between them, and intends to offer information for the formulation of policies designed to popularize electric vehicles in order to reduce carbon emissions from transportation. As a result, consumer attitudes are the most important factor influencing the intention to purchase electric vehicles. The greatest effect is found in this line: Brand Trust→Perceived Benefit→Attitude→Purchase Intention. This means that the brand can increase the consumer’s perceived benefit of electric vehicles, make consumers more attracted to electric vehicles, and influence their final purchase intention. Full article

(This article belongs to the Special Issue Circular Economy in Industry 4.0)

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20 pages, 709 KiB

Open AccessArticle

Towards a Circular Economy: Using Stakeholder Subjectivity to Identify Priorities, Consensus, and Conflict in the Irish EPS/XPS Market

by Jeffrey E Black, Kathrin Kopke and Cathal O’Mahony

Sustainability 2019, 11(23), 6834; https://doi.org/10.3390/su11236834 - 2 Dec 2019

Cited by 15 | Viewed by 6193

Abstract

In European Seas, plastic litter from fishing activities, river transport, and poor waste management is one of the fastest growing threats to the health of the marine environment. Extruded polystyrene (XPS) and expanded polystyrene (EPS), specifically, have become some of the most prominent types of marine litter found around Europe’s coastlines. To combat this problem, the European Commission has ratified a series of regulations and policies, including the Single-Use Plastics Directive and the EU Action Plan for the Circular Economy. However, in order to ensure that the benefits of such regulations and policies are realized at a scale that can adequately address the scope of the problem, decision-makers will need to integrate the opinions, values, and priorities of relevant stakeholders who operate across the EPS/XPS product lifecycle. In this study, we apply a 35-statement Q-methodology to identify the priorities of stakeholders as they relate to the Irish EPS/XPS market and the wider societal transition to a circular economy. Based on the responses of nineteen individuals representing industry, policy-makers, and community leaders, we identified three distinct perspectives: System Overhaul; Incremental Upgrade; and Market Innovation. The results demonstrate that the type and format of policy interventions linked to Ireland’s EPS/XPS circular economy are heavily contested, which presents significant challenges for driving the debate forward. These results provide valuable information on viewpoints that can be used by different stakeholders at national and EU levels to address areas of conflict, ultimately fostering the development of more effective, broadly supported co-developed policies. Full article

(This article belongs to the Special Issue Circular Economy in Industry 4.0)

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16 pages, 783 KiB

Open AccessArticle

Industry 4.0 to Accelerate the Circular Economy: A Case Study of Electric Scooter Sharing

by Trang Thi Pham, Tsai-Chi Kuo, Ming-Lang Tseng, Raymond R. Tan, Kimhua Tan, Denny Satria Ika and Chiuhsiang Joe Lin

Sustainability 2019, 11(23), 6661; https://doi.org/10.3390/su11236661 - 25 Nov 2019

Cited by 75 | Viewed by 10263

Abstract

To achieve sustainability, the circular economy (CE) concept is challenging traditional linear enterprise models due to the need to manage geographically distributed product life cycle and value chains. Concurrently, Industry 4.0 is being used to bring productivity to higher levels by reducing waste and improving the efficiency of production processes via more precise real-time planning. There is significant potential to combine these two frameworks to enhance the sustainability of manufacturing sectors. This paper discusses the fundamental concepts of Industry 4.0 and explores the influential factors of Industry 4.0 that accelerate the sharing economy in the CE context via a case of electric scooters in Taiwan. The result shows Industry 4.0 can provide an enabling framework for the sharing economy in CE implementation. Full article

(This article belongs to the Special Issue Circular Economy in Industry 4.0)

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22 pages, 1719 KiB

Open AccessArticle

Key Factors Influencing Consumers’ Purchase of Electric Vehicles

by Jui-Che Tu and Chun Yang

Sustainability 2019, 11(14), 3863; https://doi.org/10.3390/su11143863 - 16 Jul 2019

Cited by 117 | Viewed by 33037

Abstract

Although the rapid progress of the global economy and technology has advanced human civilization, it has also caused tremendous damage to the global ecological environment. Therefore, humans are thinking seriously about the environment and its sustainable development. One of the solutions to environmental problems is new energy vehicles. Since the promulgation of the “Energy Saving and New Energy Vehicle Industry Development Plan (2012–2020)” by the General Office of the State Council, the Chinese government has determined a strategy of pure electric driving technology. The electric vehicle market in China has expanded rapidly, making China the largest electric vehicle market in the world. Hence, research on the situation of electric vehicles in China is highly necessary and of reference value for other countries to develop electric vehicles. As a result, it is a critical issue to develop low-carbon, energy-saving, and intelligent electric vehicles to reduce the environmental impact. This paper establishes a theoretical framework based on the theory of planned behavior (TPB), technology acceptance model (TAM) and innovation diffusion theory (IDT), and explores the key factors influencing consumers’ purchase of electric vehicles. The results show that: The application of the key factor model constructed in this study to consumers’ behavioral intention regarding electric vehicle purchase is acceptable. According to the structural equation modeling (SEM) analysis results, (1) In terms of behavioral intention: Consumers’ control over the resources required to purchase electric vehicles has the highest influence on their behavioral intention, while consultation opinions from consumers’ surroundings also significantly affect their behavioral intention to purchase electric vehicles. In addition, consumers’ environmental awareness and acceptance of technology products will also influence their behavioral intention. (2) In terms of attitude toward behavior: When consumers believe that electric vehicles are more beneficial at the individual, environment or national level, or they believe that the usage of electric vehicles is simpler and more convenient, they will show a more positive attitude towards the purchase of electric vehicles. Consumers consider electric vehicles as forward-looking technology products with similar driving operation and usage cost compared to traditional vehicles. (3) In terms of regulations: The opinions of consumers’ family members, friends, colleagues or supervisors do not significantly affect the attitude or behavior of consumers regarding electric vehicle purchase. The key factors influencing consumers’ purchase of electric vehicles are not only applicable to the design and development of electric vehicles that better suit consumer demands, but also serve as a theoretical basis for the popularization of electric vehicles, and provide a reference for consumers’ choice and purchase. Therefore, the government and relevant manufacturers need to consider increasing the publicity of electric vehicles and launch more attractive battery and charging schemes to attract consumers and promote the sustainable development of the automobile industry. Full article

(This article belongs to the Special Issue Circular Economy in Industry 4.0)

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19 pages, 1233 KiB

Open AccessArticle

Green Procurement Decisions with Carbon Leakage by Global Suppliers and Order Quantities under Different Carbon Tax

by Rena Kondo, Yuki Kinoshita and Tetsuo Yamada

Sustainability 2019, 11(13), 3710; https://doi.org/10.3390/su11133710 - 6 Jul 2019

Cited by 25 | Viewed by 3687

Abstract

Manufactures have been pressed to reduce greenhouse gas (GHG) emissions by environmental regulations and policies. Towards to reduction of GHG emissions, a carbon tax has been already introduced in 40 countries. Owing to different carbon prices among countries, there are potential risks of carbon leakage, where manufacturers transfer production operations to the countries with lower taxes to pursue lower costs. Moreover, procurement costs and GHG emissions vary by country because of economic conditions and electric energy mixes. Therefore, total GHG emissions could be globally reduced if manufactures relocate their production bases or switch suppliers in the country with lower GHG emission levels. This study proposes a green procurement decision for the supplier selection and the order quantity for minimizing GHG emission and costs considering the different carbon taxes in different countries. First, a bill of materials for each part is constructed through the life cycle inventory database with the Asian international input/output tables for a case study. Second, a green procurement decision considering the different carbon prices is formulated using integer programming. Finally, the results, including carbon leakage, are analyzed from the viewpoint of manufacturers, governments, and global perspectives. Full article

(This article belongs to the Special Issue Circular Economy in Industry 4.0)

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19 pages, 1841 KiB

Open AccessArticle

The Healthcare Sustainable Supply Chain 4.0: The Circular Economy Transition Conceptual Framework with the Corporate Social Responsibility Mirror

by Gláucya Daú, Annibal Scavarda, Luiz Felipe Scavarda and Vivianne Julianelli Taveira Portugal

Sustainability 2019, 11(12), 3259; https://doi.org/10.3390/su11123259 - 13 Jun 2019

Cited by 102 | Viewed by 11363

Abstract

Concern regarding the circular economy and Industry 4.0 is starting to increase in the emerging countries. This research study aims to analyze the healthcare sustainable supply chain 4.0 by proposing the circular economy transition conceptual framework with the corporate social responsibility mirror. The authors developed an observation guideline to collect empirical data from a private healthcare institution located in Rio de Janeiro, which has been promoting investment in new technologies within its operations. The research observation is between January and April 2017. The results show the glass structure can be a channel that provides the lightning resources, the solar energy with the photovoltaic panels, and the water management. The corporate social responsibility links the social role in healthcare institutions with sustainable practices and it improves smart technologies. The applicability of the internet of things and the internet of services adds value to sustainable practices. The circular economy transition conceptual framework integrates the result analyses. The research concludes that the union among the triple bottom line, Industry 4.0, and the corporate social responsibility allows the transition from the linear model to the circular model and can improve the sustainable healthcare supply chain 4.0. Full article

(This article belongs to the Special Issue Circular Economy in Industry 4.0)

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13 pages, 512 KiB

Open AccessArticle

Applying the Theory of Consumption Values to Explain Drivers’ Willingness to Pay for Biofuels

by Suhaiza Zailani, Mohammad Iranmanesh, Sunghyup Sean Hyun and Mohd Helmi Ali

Sustainability 2019, 11(3), 668; https://doi.org/10.3390/su11030668 - 28 Jan 2019

Cited by 57 | Viewed by 7701

Abstract

The transportation sector has dominated global fuel consumption and as a result, greenhouse gas emissions have risen at an alarming rate. As a consequence, many countries have adopted policies and strategies to diversify their fuel sources in the transportation sector. Biofuel is one of the potential substitution fuels that has attracted the attention of both researchers and policy makers. Public acceptance of biofuels is one of the major challenges for the implementation of biofuel blends in transportation. To determine the influence of different values that affect drivers’ willingness to pay for biofuels, the theory of consumption values is applied in the present research. The data were gathered by distributing questionnaires to 343 Malaysian people with driving licences and access to cars. The data were analysed using the partial least squares technique. The results of the analysis revealed that functional values, specific condition, emotional values and novelty seeking were among the main factors that influence drivers’ willingness to pay for biofuels. Social values were shown to not be a significant factor. The results of the study contribute to the literature by testing the relationship between consumption values and willingness to pay for biofuels. The information provided in the present research might be beneficial for policy makers in modifying tactics and strategies towards the successful promotion of the usage of biofuels in developing countries. Full article

(This article belongs to the Special Issue Circular Economy in Industry 4.0)

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14 pages, 1706 KiB

Open AccessArticle

Data Analysis of Shipment for Textiles and Apparel from Logistics Warehouse to Store Considering Disposal Risk

by Rina Tanaka, Aya Ishigaki, Tomomichi Suzuki, Masato Hamada and Wataru Kawai

Sustainability 2019, 11(1), 259; https://doi.org/10.3390/su11010259 - 7 Jan 2019

Cited by 6 | Viewed by 4269

Abstract

Given the rapid diversification of products in the textile and apparel industry, manufacturers face significant new challenges in production. The life cycle of apparel products has contracted and is now, generally, a several-week season, during which time a majority of products are supposed to be sold. Products that do not sell well may be sold at a price lower than the fixed price, and products that do not sell at all within the sales period may eventually become forced disposal. This creates long-term management and environmental problems. In practice, shipping personnel determine when to ship products to stores after reviewing product sales information. However, they may not schedule or structure these shipments properly because they cannot effectively monitor sales for a large number of products. In this paper, shipment is considered to reduce the risk of product disposal on the premise of selling at a fixed price. Although shipment quantities are determined by various factors, we only consider the change in inventory at the logistics warehouse, since it is difficult to incorporate all factors into the analysis. From cluster analysis, it is found that shipping personnel should recognize a policy to sell products gradually over time. Furthermore, to reduce the risk of disposal, we forecast the inventory from conditional probability and are able to extract products out of a standard grouping using past data. Full article

(This article belongs to the Special Issue Circular Economy in Industry 4.0)

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11 pages, 3458 KiB

Open AccessArticle

The Relationship between the Physical Quality of Rice and the Market Price: A Case Study in Savannakhet, Laos, Using a Bayesian Approach

by Kensuke D. Kawamura, Hidetoshi Asai, Shintaro Kobayashi, Soukasdachanh Souvannasing, Phonevilay Sinavong and Thavone Inthavong

Sustainability 2018, 10(11), 4151; https://doi.org/10.3390/su10114151 - 12 Nov 2018

Cited by 1 | Viewed by 3481

Abstract

The visual characteristics of rice grains play a primary role in determining the market price, and are used for grading systems in many rice-consuming countries. Laos is a rice-consuming country in Southeast Asia, but it does not have a functioning grading system. This study investigated the relationship between the physical quality of milled rice grains and the market price based on the Bayesian approach in Savannakhet, Laos. We collected 30 rice samples and their market prices from 12 shops, including imported rice from Thailand and Vietnam. The rice samples were scanned using a Grain Scanner, and the proportion of head rice (HR, %) was determined using physical traits (length, shape, color, etc.) based on the ‘Thai standard’ grading criteria. The relationship between the HR ratios and market prices was modeled with the Bayesian approach. For Laos’s product, the market price and HR ratio were lower than those for Thailand’s product. Based on the Bayesian framework, the results of Markov Chain Monte Carlo simulations indicated that (1) the market price of Thailand’s product was mostly determined by the HR ratio, but other factors, such as aroma, were also suggested, especially in high-quality rice grains; (2) Laos’s product showed a positive correlation, but other factors had a greater influence on Laos’s product than Thailand’s product; and (3) no clear relationship was found in Vietnam’s product due to the limitation of a small number of samples, which was also considered a difference in consumer needs. These results indicated that the relationship between rice quality and market price for Laos’s product was unstable compared to that for Thailand’s product. To promote a more market-oriented agricultural sector, this pilot study has been broadened to examine other factors and extended to other cities or regions in Laos. Full article

(This article belongs to the Special Issue Circular Economy in Industry 4.0)

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16 pages, 1432 KiB

Open AccessArticle

Enterprise Architecture for a Facilitated Transformation from a Linear to a Circular Economy

by Felix Laumann and Torben Tambo

Sustainability 2018, 10(11), 3882; https://doi.org/10.3390/su10113882 - 25 Oct 2018

Cited by 19 | Viewed by 6778

Abstract

The circular economy is central to the agenda of responsible production and consumption with propositions for the conservation of natural resources and a broader understanding of the obligations of enterprises and product developers. The circular economy is challenging traditional operating models of enterprises due to the need to manage larger parts of the product life cycle and value chains. A linear economy will normally address a smaller part of the life cycle. The operating models of companies are supported with respect to information and technology with an enterprise architecture model. This article examines the necessary steps for analysing and designing the enterprise architecture model, aiming to facilitate the transformation of an enterprise from operating in a linear to operating in a circular economy model. The fundamentals and requirements of the circular economy enterprise are extracted to isolate the design requirements for the operating model, entailing cross-enterprise collaboration, traceability, and a broader value chain understanding. Furthermore, it conceptualizes enterprise architecture and its role and importance in connecting business strategies and operating technologies. This article develops an enterprise architecture framework, named the Circular Economy Enterprise Architecture Framework (CEEAF), which can form and support the effort of transitioning companies or be embedded into existing enterprise architecture frameworks. The CEEAF differs from traditional enterprise architecture frameworks by addressing the broader responsibility of the enterprise, the extended enterprise, the elimination of end-of-life perspectives and mind-sets, and the capabilities of the individual enterprise and its design activities. Full article

(This article belongs to the Special Issue Circular Economy in Industry 4.0)

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13 pages, 7838 KiB

Open AccessConcept Paper

Industry 5.0—A Human-Centric Solution

by Saeid Nahavandi

Sustainability 2019, 11(16), 4371; https://doi.org/10.3390/su11164371 - 13 Aug 2019

Cited by 625 | Viewed by 47515

Abstract

Staying at the top is getting tougher and more challenging due to the fast-growing and changing digital technologies and AI-based solutions. The world of technology, mass customization, and advanced manufacturing is experiencing a rapid transformation. Robots are becoming even more important as they can now be coupled with the human mind by means of brain–machine interface and advances in artificial intelligence. A strong necessity to increase productivity while not removing human workers from the manufacturing industry is imposing punishing challenges on the global economy. To counter these challenges, this article introduces the concept of Industry 5.0, where robots are intertwined with the human brain and work as collaborator instead of competitor. This article also outlines a number of key features and concerns that every manufacturer may have about Industry 5.0. In addition, it presents several developments achieved by researchers for use in Industry 5.0 applications and environments. Finally, the impact of Industry 5.0 on the manufacturing industry and overall economy is discussed from an economic and productivity point of view, where it is argued that Industry 5.0 will create more jobs than it will take away. Full article

(This article belongs to the Special Issue Circular Economy in Industry 4.0)

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