Small and medium-sized enterprises (SMEs) are increasingly aware of the benefits of closing loops and improving resource efficiency, such as saving material costs, creating competitive advantages, and accessing new markets. At the same time, however, various barriers pose challenges to small businesses in their transition to a circular economy, namely a lack of financial resources and lack of technical skills. The aim of this paper is to increase knowledge and understanding about the barriers and enablers experienced by SMEs when implementing circular economy business models. Looking first at the barriers that prevent SMEs from realising the benefits of the circular economy, an investigation is carried out in the form of a literature review and an analysis of a sample of SME case studies that are featured on the GreenEcoNet EU-funded web platform. Several enabling factors that help SMEs adopt circular economy practices are then identified. The paper concludes that although various policy instruments are available to help SMEs incorporate circular economy principles into their business models, several barriers remain. The authors recommend that European and national policies strengthen their focus on greening consumer preferences, market value chains and company cultures, and support the recognition of SMEs' green business models. This can be achieved through the creation of dedicated marketplaces and communities of practice, for example.

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Abstract:The efficiency of fiscal support for electricity generation from renewable energy sources (RES-E) is a multifaceted notion that cannot be adequately described by a single metric. Efficiency is related to the ability of a policy measure to support deployment without creating negative feedback effects. These negative effects may stem from saturation of the grid's ability to absorb an increased amount of RES-E power, the inability of regulatory bodies to cope with the larger workload due to the increased number of projects requesting permits or from rent-seeking behavior. Furthermore, the primary rationale for feed-in tariffs (FITs) and other fiscal support schemes is that increased deployment of RES-E technologies will lead to reductions in costs and increases in efficiency. As a result, the efficiency of an RES-E support policy should be also judged by its ability to capitalize on cost reductions. Overall, we present an approach to facilitate ongoing assessments of the efficiency of support measures for RES-E deployment. We demonstrate the proposed approach using the FIT support policy in Greece as a case study. In particular, the RES-E support policy in Greece has been recently revised through tariff cuts and a moratorium on new production licenses. We aim to demonstrate that if publicly available data are appropriately monitored, a policy revision can take place in a timelier and less disruptive manner.

PurposeThe purpose of this paper is to present the Business Strategy Assessment Model (BSAM) approach, in an attempt to explore the principle dynamics of an energy‐economic system with emphasis on the private actors' point of view and the impact different policy instruments may have on the decisions of private actors with different characteristics.Design/methodology/approachIn the BSAM model, investment decisions under consideration depend on their perceived financial value. Basis for the financial valuation of an investment option is formed by simulating market dynamics with alternative price scenarios. The outputs include: investment strategies, derived as a function of the (uncertain) state vector of future market conditions and risk premium, calculated by contrasting the expected net present value for the optimal timing of the investment and the expected net present value of an immediate investment generation module of the BSAM, while both of these outputs are estimated for each available technology option.FindingsDifferent models make different assumptions shedding light upon different aspects of the socio‐economic systems they attempt to analyze and hitherto, no such model succeeds in incorporating all the perceptions that are driving the integration of energy policies. BSAM is based on the notion that a convergence between policy evaluation and business strategy assessment models could be truly beneficial for regulators that aim to derive effective energy policies. Both the algorithm adopted and the structure of the modules of BSAM facilitate the analysis of complex interactions in a firm's decision making process, and even more the what‐if analyses needed for alternative policy measure evaluation.Originality/valueSetting the framework for a modelling approach that incorporates the role of risk‐return perceptions of private actor's with diverse features, portfolio effects, path dependence and agent competition, into appraising energy and climate policies, and suggest that the heterogeneous world of investors requires reflexive assessment techniques. Above and beyond, understanding the drivers and triggers of firm's investment strategies will allow improving the effectiveness of energy policies.