Circular Economy and Sustainability-Oriented Innovation: Conceptual Framework and Energy Future Avenue

Abstract

A circular economy emerged as an alternative transition model, which is considered to be a solution to massive environmental degradation. The transition from a linear economy to a circular economy requires companies to be actively involved in more sustainable practices. For such a transition, companies must rethink, innovate on business models, and encourage sustainability-oriented innovation to deliver customer value, while simultaneously considering environmental and social aspects. On the other hand, the role of the circular economy in energy conservation and infrastructure has not been mapped out in the current literature. This systematic literature review seeks to map out the main interrelated topics of the circular economy and sustainability-oriented innovation, describing internal and external factors that need to be considered in the transition to a clean energy future. Key lines of research are identified, and suggestions for future research and for how to facilitate the movement towards a circular economy are provided. This study contributes to an enhancement of the literature by identifying priority areas regarding the circular economy and sustainability-oriented innovation to encourage future research that contributes to sustainability and environmental preservation.

Circular economy practices in SMEs: aligning model of green economic incentives and environmental commitment

“…The GEI can be allocated to carry out sustainable procurement. Thus, it will lead to product life cycle costs, sustainable oriented innovation (Koval et al. , 2023), return on social investment, reduction of waste and the ability to produce environmentally friendly products (Shaikh et al.…”

“…The GEI can be allocated to carry out sustainable procurement. Thus, it will lead to product life cycle costs, sustainable oriented innovation (Koval et al, 2023), return on social investment, reduction of waste and the ability to produce environmentally friendly products (Shaikh et al, 2023). The present study considered three indicators as green economy incentives determinants, namely (1) government subsidies and tax benefits (GSTB),…”

“…Furthermore, the important role of the government in making regulations related to providing green incentives will change the perspective of SME managers about the importance of contributing to saving the environment (Singh et al, 2018). GEIs are allocated to build sustainable oriented innovation (Koval et al, 2023), return on social investment, reduction of waste and the ability to produce environmentally friendly products (Shaikh et al, 2023). Thus, green incentives have an impact on increasing EC.…”

“…The collaborative structure built aims to identify environmental needs and enhance strong interactions in the value chain (Shaikh et al, 2023). Further, EC is a starting point for SMEs to design energy-efficient products (Koval et al, 2023), recyclable, safe raw materials and minimize waste (Schmidt et al, 2021). Therefore, it can affect investment recovery, inventory effectiveness and sales of used goods and materials (Schmidt et al, 2021).…”

Вплив Діджиталізації На Розвиток Національної Економіки

“…Це дослідження дає три основні висновки, які є корисними для покращення розуміння циклічної економіки та інновацій, орієнтованих на сталий розвиток [11]. У контексті розвитку інноваційної економіки можливо сформувати наступні рекомендації:…”