Measuring and Managing Circular Economy in Regions
Creators: name: Van Bueren, Bartholomeus
Publisher: name: RMIT University
Year: 2024
Subjects: classificationCode: 410404
subject: Environmental management
classificationCode: 350304
subject: Business systems in context

description: The Circular Economy (CE) is emerging as a solution for a thriving economy within regional and planetary boundaries for environment and social justice. CE theory and practice struggle with transitioning towards the CE because its multifaceted and interconnected processes are difficult to approach comprehensively. Measuring and managing CE comprehensively is particularly important for regional systems (the macro-level) as this is where all resources and processes come together. Incomplete approaches can result in problem shifting instead of optimization. Therefore, this PhD-thesis seeks a more comprehensive systems approach to measure and manage Regional Circular Economy (RCE). Comprising five publications, this thesis makes three types of contributions: problem identification, theoretical conceptualizations, and empirical verification.

Problem identification contributions are made through reviewing CE definitions (paper 2), CE assessments (papers 1 and 2), and CE management models (paper 3). Significant gaps and fallacies are identified: Both CE definitions and its assessments are heterogeneous, and all fall short in presenting a comprehensive overview of its facets and processes; CE management models lack theoretical underpinnings and miss relevant stakeholders.

Theoretical conceptualizations are made to address these problems. They are formed through integrating well-established fields into CE, by the method of theory adaptation. The three key-contributions are:
- An improved definition of RCE (paper 2). RCE is understood here to solve the triple bottom line (TBL) challenge for the ecosystem, society and economy. This RCE definition fulfills criteria of a good definition, builds on foundational CE literature, is up-to-date with current scientific knowledge, and synchronized with the RCE-framework for measuring RCE comprehensively.
- The RCE-framework (paper 2) presents a comprehensive systems approach covering the 23 key TBL-processes of (material) resource flows. The framework assists in informing regions (of any scale) on the risk of overshooting capacity boundaries, and how the processes serve and pressure each other.
- The eco-5HM (ecological quintuple helix model) (paper 3, 4 and 5). The eco-5HM is a comprehensive stakeholder model for the CE to improve TBL-performance through (human) management operations and collaborations. The stakeholders in the eco-5HM are government, firms, academia, and NGO’s representing society and the ecosystem. Their collaboration is required for systemic eco-innovation towards solving the TBL-challenge.

Empirical verification tested the theoretical conceptualizations in practice. The first verification is on the definition and RCE framework by assessing Australia with statistical data from 2021 (paper 2). A second verification is on the RCE framework and eco-5HM by analysing 28 eco-communities on their TBL-performance, and on the solutions that contribute to great performance (paper 5). Data-collection methods for empirical verification were ethnographies, interviews, surveys and secondary data.

Applying empirical data on the conceptualizations also created insights on a more applied level:
- Australia’s TBL-performance is concerning. Many natural ecosystem processes are at risk, and despite that many (polluting) economic production processes are outsourced (paper 2).
- Some eco-communities have an excellent TBL-performance as they thrive on every process. They are lead-users that can inform Australia and other mainstream societies on how to solve the TBL-challenge (paper 5).
- Thirteen eco-innovative solutions were identified that contribute to solving the TBL-challenge. These solutions cover all lifestyle aspects of living space, food, leisure and work. These solutions are popular within eco-communities and not in mainstream societies as they require an established eco-innovation network between local stakeholders (paper 5).
- Constructing this eco-innovation network in mainstream societies may improve their TBL-performance. This network could be constructed through stakeholder operations and collaborations as described through the eco-5HM (paper 4 and 5).

This PhD-thesis contributes to a better understanding, measuring and managing of RCE towards solving the TBL-challenge. Theoretical implications include correcting CE fallacies and expanding theory on stakeholder operations and collaborations. Managerial implications are for governments, firms, academia, and NGO’s representing society and the ecosystem for more effective operations and collaborations towards solving the TBL-challenge.