A Metric for Quantifying Product‐Level Circularity

Abstract

Summary Circularity metrics are useful for empirically assessing the effects of a circular economy in terms of profitability, job creation, and environmental impacts. At present, however, there is no standardized method for measuring the circularity of products. We start by reviewing existing product‐level metrics in terms of validity and reliability, taking note of theoretically justified principles for aggregating different types of material flows and cycles into a single value. We then argue that the economic value of product parts may constitute a useful basis for such aggregation; describe a set of principles for using economic value as a basis for measuring product circularity; and outline a metric that utilizes this approach. Our recommendation is to use the ratio of recirculated economic value to total product value as a circularity metric, using value chain costs as an estimator. In order to protect value chain actors’ sensitive financial data and facilitate neutrality regarding outsourcing or insourcing, we suggest a means to calculate product‐level circularity based on sequential approximations of adding one product part and activity at a time. We conclude by suggesting potential avenues for further research, including ways in which the proposed metric can be used in wider assessments of the circular economy, and ways in which it may be further refined.

Conceptualizing the Circular Economy: An Analysis of 114 Definitions

“…Yet the meso-systems perspective, e. g. outlined by Conticelli and Tondelli (2014), that focuses on eco-industrial parks is even more prominent than the macro-perspective in definitions from 2012 or later, indicating that CE is now increasingly seen as an endeavour that requires efforts particularly at the regional level. Only few definitions, e. g. Fang et al (2007) and Linder et al (2017), mention that CE requires fundamental changes simultaneously at the micro, meso and macro system, an explication we find helpful to underscore the holistic systemic change that CE requires.…”

“…We included this waste hierarchy as a coding dimension from the very beginning. This inclusion finds particular support in the writings on cradle-to-cradle (C2C), a concept the CE concept particularly builds on (Linder et al, 2017). One of the three C2C core principles, 3 outlined in McDonough and Braungart (2001) and further elaborated in Braungart and McDonough (2002), is 'waste equals food', a key CE idea expressed via the various Rs, with Braungart & McDonough (2002, p.56) noting regarding this principle that "most recycling is actually downcycling; it reduces the quality of a material over time".…”

Evaluating the Environmental Dimension of Material Efficiency Strategies Relating to the Circular Economy

“…Two summaries of material efficiency tools were recently published [10,11]. Based on these two publications, a collection of eight material efficiency measurement tools was assembled, as given in Table 1.…”

“…However, Table 1. Material Efficiency assessment tools, as described by Linder [10] and Saidini [11]. …”

Assessing circularity interventions: a review of EEIOA-based studies

“…This can be done through the application of analytical methods that assess the impact of particular policies (Elia et al 2017;Potting et al 2017). However, there is no recognised framework for measuring how effective a country is in making a transition to circularity (EEA 2016;Linder et al 2017). Such an approach needs to integrate indicators with a clear understanding of the circularity mechanism influencing multiple economic activities and their environmental performance (Lieder and Rashid 2016b;Pauliuk 2017).…”