Local Circles in a Circular Economy – the Case of Smartphone Repair in Denmark

Abstract

Circular economy has gained increasing attention the last decade, and more often the main focus is on the large global circles addressing recycling of materials rather than the "inner circles" that address maintenance/repair and reuse. In this article we investigate one such inner circle ofthe circular economy namely repair of smartphones which extends the lifetime of products and adds to a local economy. Local repair of smartphones has increased in the resent years in Denmark. These loop-closing businesses not only extend the useful lifetime of smartphones; they also entail both environmental benefits and economic value creation. We map the extent ofthe repair sector and investigate the drivers and barriers for its emergence. The study builds on desk studies for identification of repair companiesand telephone interviews with 33 out of 90 identified companies. The mapping of the businessesshows that the repair of smartphones constitute viable business opportunities, and that the main driversarerelated to the economic business potentials as well as motivated entrepreneurs who spot a market potential.The study concludes that the local circular economy within smartphone repair is due to large consumer willingness-to-pay for repair and maintenance services, and this can extend the lifetime of the smartphones. There are some special characteristics that limit the possibility to apply the results directly to other product groups, but further analysis of how to facilitate repair shops within other product groups are interesting in order to facilitate the development of local circles in a circular economy not only in Denmark but also in other countries.

Circular business models generation for automobile remanufacturing industry in China

“…First, the overall development of the remanufacturing sector is very unclear. Previous studies have only considered whether public procurement policies are sustainability oriented (Kuo et al , 2010; Rizos et al , 2016), and it takes time to build new partnerships and mutual trust (Riisgaard et al , 2016; Sabbaghi et al , 2017). Furthermore, as there is currently no national remanufacturing industry development plan, the progress and direction of the remanufacturing sector varies from place to place.…”

“…Third, there are barriers to developing appropriate products and technologies. A large number of exclusive product design requirements appear when enterprises move toward a CBM (Adams et al , 2017; Krystofik et al , 2015; Riisgaard et al , 2016; Sundin et al , 2009). At the same time, the many domestic manufacturers offer fierce competition, which drives the cost of parts and components very low, resulting in low value-added products, making it difficult to achieve lower cost repairs.…”

Does the Circular Economy Grow the Pie? The Case of Rebound Effects From Smartphone Reuse

“…In the case of technological products, also by discouraging users to buy spare products via green design. For example, by allowing multiple SIM cards in smartphones and facilitating repair (Riisgaard et al, 2016). In any case, it bears noting that rebound effects can have social benefits, especially for low-income groups (Ürge-Vorsatz and Tirado Herrero, 2012;Galvin, 2015), and so such tools must consider an asymmetrical distribution of economic burdens/benefits (Font Vivanco, 2016).…”

Mobilising information systems scholarship for a circular economy: Review, synthesis, and directions for future research

“…Moreover, self-repair requires technical knowledge (eg, disassembly instructions), skills (eg, training), and resources (eg, tools and spare parts). For most products to date, relevant information on repair is not readily available to consumers or repair professionals, if at all (Ellen MacArthur Foundation, 2016a;Riisgaard, Mosgaard, & Zacho, 2016). This lack of information and guidance leads to ecologically and economically suboptimal dispositions (Atlason, Giacalone, & Parajuly, 2017;Sabbaghi, Esmaeilian, Raihanian Mashhadi, Behdad, & Cade, 2015).…”