What is Circular Economy definition/concept
This approach must be understood in opposition to linear economics . These are two different models when evaluating everything related to the economy: obtaining raw materials, manufacturing products, eliminating waste, commercial benefits and consumer paper. Circular Economy
General scheme of linear economy
If we take as a reference a certain consumer good, it can be said that it usually presents a linear type process . Thus, first the raw materials are extracted, then they are modified or refined; subsequently a product is manufactured industrially and finally this product is purchased by a consumer.
The process does not end here, as the consumer no longer uses the purchased product, becoming waste. This system works like a line that has a beginning and an end. Circular Economy
Linear economics is based on two great principles:
1) permanent economic growth and its consequent environmental deterioration,
2) constant consumption.
This model is not the only one possible since, in fact, the circular economy is presented as an alternative.
General outline of the circular economy
If we use a product as a reference (for example, a vehicle , a cell phone, a pants or a computer ), the application of this proposal would be as follows:
1) the consumer does not let go of the product he has purchased when he decides to buy a new one, but instead repairs the product (for example, introducing a new chip or any other update);
2) as a consequence of item number 1, less waste is produced and, on the other hand, the manufacturing company does not need to manufacture more product, therefore, more savings are made in production ;
3) as a consequence of item number 2, the manufacturer does not need to obtain so many raw materials;
4) If the product can be repaired, this cost becomes less than buying a new one.
The model described above is less polluting than the linear one, generates economic benefits from innovation and does not imply a price increase for the final consumer
It is a circular economy because the waste generated is not completely eliminated, but returns to the production process to manufacture new products or for other purposes.
The proposal is currently in its initial phase. Anyway, it is a system that can be applied to any type of business sector. For many economists, the circular economy could be a solution to reduce pollution on the planet.