Towards the Smart Circular Economy Paradigm: A Definition, Conceptualization, and Research Agenda
Abstract
:1. The Relevance of the Digital Age to the Circular Economy
2. Research Methodology and Theoretical Background
2.1. Research Methodology
2.2. The Emergence of the Smart Circular Economy Paradigm
2.3. The Enabling Role of Digital Technologies in the Smart Circular Economy Paradigm
3. Towards the Smart Circular Economy Paradigm
3.1. Smart Circular Economy: A Definition and Research Framework
an industrial system that uses digital technologies during the product life-cycle phases to implement circular strategies and practices, aiming at value creation through increased environmental, social, and economic performance.
- The underlying digital technologies, such as the Internet of things, big data and analytics, 3D printing, blockchain, and augmented/virtual reality;
- The life-cycle phases of a generic product affected by this transformation, ranging from design to the end of use;
- The circular economy strategies of reducing, reusing, remanufacturing, and recycling, according to [12];
- The circular economy practices—that is to say, the managerial levers that can be employed to support the implementation of the circular economy in companies regarding product design, business model, and value chain, according to [4];
- The targeted creation of value, achievable through an increase in environmental performance classified according to the triple bottom-line perspective of economic, environmental, and social benefits.
3.2. Applying the Framework to a Sample of Articles
4. A Research Agenda for the Smart Circular Economy Paradigm
4.1. Develop the Research Objectives and Methodologies from Exploratory to Confirmatory Purposes, and from Descriptive to Prescriptive Frameworks (Research Perspective)
4.2. Move the Focus from Single Organizations to the Entire Ecosystem of Stakeholders (Business Strategy and Organizational Perspective)
4.3. Combine Different Enabling Digital Technologies and Study Their Interlinked Effects on the Circular Economy (Technology Perspective)
4.4. Assess the Environmental Impact of Digital Technologies on the Circular Economy to Show That Environmental Gains Offset Their Intrinsic Environmental Cost (Assessment Perspective)
5. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Conflicts of Interest
References
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Article | Year | Smart Circular Economy Definition and Conceptualization |
---|---|---|
Towards a framework of smart circular systems: An integrative literature review [37] | 2019 | Smart circular systems are conceptualized as industrial systems that are restorative or regenerative by intention and design, where smart use, maintenance, reuse, remanufacturing, and recycling are included in product-service systems’ business models, enabled by digital technologies. |
The smart circular economy: A digital-enabled circular strategies framework for manufacturing companies [20] | 2020 | The smart circular economy is conceptualized in a framework that combines data transformation, resource optimization capabilities, and data flow processes to enable circular strategies. |
Smart circular product design strategies towards eco-effective production systems: A lean eco-design industry 4.0 framework [38] | 2021 | Smart circular product design is conceptualized as the synergistic combination of lean/eco-design and industry 4.0 to promote sustainability throughout the product life cycle using reduce, reuse, and recycle strategies. |
Smart circular supply chains to achieving SDGs for post-pandemic preparedness [39] | 2021 | The establishment of smart circular supply chains is conceptualized as the combination of the circular economy and smart enablers, to provide firms with a competitive advantage by managing products effectively and preventing pollution. |
Towards a business analytics capability for the circular economy [36] | 2021 | The smart circular economy is conceptualized as a more efficient and effective economy, where organizations leverage digital business practices on value creation. |
Barriers to transitioning towards the smart circular economy: A systematic literature review [40] | 2022 | The smart circular economy is defined as an industrial system that uses digital technologies to implement circular strategies such as reduce, reuse, remanufacture, and recycle. |
Digital Technology | Product Life-Cycle Phase | References | ||||
---|---|---|---|---|---|---|
Design | Manufacturing | Distribution | Usage | End of Use | ||
Internet of Things | Monitoring of data to achieve operational excellence by reducing scraps and equipment wear and tear. | Enabling the provision of circular product-as-a-service business models (pay per use, sharing). | Tracking products to increase collection rate. | [18,19,26,37,42,43] | ||
Big Data and Analytics | Transforming product-in-use data into valuable information to improve product design for circularity. | Enabling the provision of preventive and predictive maintenance. | Informing better decision-making for reuse, remanufacturing, and recycling. | [19,20,26,37,44,46,47,49,50,51] | ||
3D Printing | Increasing the use of recycled materials (recycled plastic polymers or metal powders). Increasing product personalization to avoid the early retirement of products. | Minimizing material losses, scraps, and waste (additive, not subtractive process). Reducing the need to hold large inventories. | Reducing the need for transportation. | Enabling the local and on-demand production of spare parts for repair and upgrades. | [54,56,57,58] | |
Blockchain | Ensuring trust, transparency, traceability, security, and reliability in the value chain to drive green consumer choices and prevent greenwashing. | Allowing automated transactions (e.g., smart contracts), leading to greater efficiency. | Financial incentivization to drive users’ behavior towards increased recycling. | [47,60,61,62,63] | ||
Augmented and Virtual Reality | Facilitating the redesign of products to improve circularity. | Providing remote assistance and guidance for maintenance activities. | [20,41,42,65] |
Article | Digital Technology | Lifecycle Phase | Circular Economy 4R Strategy | Circular Economy Practice | Sustainability Performance |
---|---|---|---|---|---|
Green Transition: The Frontier of the Digicircular Economy Evidenced from a Systematic Literature Review [66] | Internet of Things Big Data and Analytics (based on quantum computing) | Design Manufacturing Usage End of use | Reduce Recycling | Eco-design New business models based on servitization Value chain reconfiguration | Reduce the pace of emissions to a value lower than the rate at which natural systems can absorb them. Recycle resources at a pace higher than waste generation. |
Digital Twins for the Circular Economy [67] | Digital Twins | Design Manufacturing Distribution Usage End of Use | Reuse Remanufacturing Recycling | Product design Servitized business models (sharing) Circular value chain coordination | Reduce the consumption of natural resources by optimizing product design based on digital twins. Reduce waste generation by increasing remanufacturing and recycling, thanks to improved decision-making enabled by digital twins. Economic benefits from the optimization of resources during the product life cycle. |
Omni-Chanel Network Design towards Circular Economy under Inventory Share Policies [68] | Internet of Things | Distribution | Reduce | Value chain optimization | Savings in holding and transportation costs due to the optimization of inventory share policies. Reduce CO2 over-production and transportation emissions due to the optimization of inventory share policies. |
Circularity for Electric and Electronic Equipment (EEE), the Edge and Distributed Ledger (Edge and DL) Model [69] | Blockchain | Manufacturing Distribution End of use | Remanufacturing Recycling | Value chain | Reduce waste generation, especially for electrical and electronic equipment (WEEE). |
Circular Digital Built Environment: An Emerging Framework [70] | Internet of Things Big Data and Analytics 3D Printing Blockchain | Design Manufacturing (construction and assembly) Usage End of use | Reduce Reuse Recycling | Design for green buildings (long life, reversibility, improvements in efficiency) Circular value chain collaboration | Regenerate resources (using renewable resources). Narrow resource flows (resource efficiency). Slow resource loops (intensify usage and extend service life). Close the loop. |
Using Internet of Things and Distributed Ledger Technology for Digital Circular Economy Enablement: The Case of Electronic Equipment [71] | Internet of Things Blockchain Big Data and Analytics | Distribution Usage End of use | Reduce Reuse Remanufacturing Recycling | Servitized business models Value chain management coordination | Prevent electronic waste generation. Prevent adverse environmental and human health effects due to inappropriate disposal and recycling of WEEE (e.g., related to the illegal exportation of e-waste to developing countries that use child labor and whose dismantling practices create hazardous pollution). Increase compliance with legislative requirements, such as the WEEE directive. |
Industry 4.0 and Smart Data as Enablers of the Circular Economy in Manufacturing: Product Re-engineering with Circular Eco-design [72] | Internet of Things Big Data and Analytics | Design Manufacturing Distribution | Reduce | Eco-design | Reduce the environmental impact of the product (ceramic tiles), thanks to eco-design informed by the IoT and Big Data Analytics. |
Research Direction | Perspective | Highly Promising Avenues |
---|---|---|
§1 Develop the research objectives and methodologies from exploratory to confirmatory purposes, and from descriptive to prescriptive frameworks. | Research objectives and methodologies |
|
§2 Move the focus from single organizations to the entire ecosystem of stakeholders. | Business strategy and organization |
|
§3 Combine different enabling digital technologies and study their interlinked effects on the circular economy | Technology |
|
§4 Assess the environmental impact of digital technologies on the circular economy to show that environmental gains offset their intrinsic environmental cost. | Assessment and evaluation |
|
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Bressanelli, G.; Adrodegari, F.; Pigosso, D.C.A.; Parida, V. Towards the Smart Circular Economy Paradigm: A Definition, Conceptualization, and Research Agenda. Sustainability 2022, 14, 4960. https://doi.org/10.3390/su14094960
Bressanelli G, Adrodegari F, Pigosso DCA, Parida V. Towards the Smart Circular Economy Paradigm: A Definition, Conceptualization, and Research Agenda. Sustainability. 2022; 14(9):4960. https://doi.org/10.3390/su14094960
Chicago/Turabian StyleBressanelli, Gianmarco, Federico Adrodegari, Daniela C. A. Pigosso, and Vinit Parida. 2022. "Towards the Smart Circular Economy Paradigm: A Definition, Conceptualization, and Research Agenda" Sustainability 14, no. 9: 4960. https://doi.org/10.3390/su14094960