Circular Economy Implementation from the Perspective of Benefits and Barriers

Abstract

The circular economy is an economic model focused on reducing waste generation and promoting resource reuse. It has gained popularity as a sustainable solution to the linear economy's negative impact on the planet and socio-economic conditions. Implementing the circular economy involves replacing the concept of "end of life" with reduction, reuse, recycling, and restoring materials at various levels, from micro to macro. To explore the benefits and barriers of implementing the circular economy in the business environment, a literature review was conducted using the Web of Science Core Collection database. Among the 1,510 initial search results, 17 relevant articles were selected for analysis with application of snowball method. These articles represent contributions from various countries, with a majority from outside Europe. The analysis of the selected articles revealed six basic groups of benefits and barriers associated with the circular economy. Benefits include improved public relations, cost savings, competitive advantage, economic growth, environmental restoration, and job creation. However, barriers such as organizational culture, lack of information, financial constraints, inadequate legislation, low awareness, and limited customer interest pose challenges for implementation. While the circular economy offers numerous benefits, its successful implementation starts at the micro level, requiring businesses to overcome internal barriers. Companies must innovate their business models, consider future directions, and navigate financial challenges. Despite obstacles, the circular economy presents an opportunity for cost savings, improved company image, and positive environmental and societal impact. By embracing this model, businesses can contribute to a sustainable and prosperous future.