DOCSLIB.ORG

Making Sense of Rebound Effects in the Circular Economy: Findings from the Dutch Textile Industry

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Making Sense of Rebound Effects in the Circular Economy: Findings from the Dutch Textile Industry Making Sense of Rebound Effects in the Circular Economy: Findings from the Dutch Textile Industry Author: Thomas Siderius || 941031759070 Urban Environmental Management: Management Studies Business, Management & Organization Group, Wageningen University & Research Supervisor: Kim Poldner 2nd Supervisor: Judith van Leeuwen 1 Abstract This research investigates the phenomenon of rebound in relation to the Circular Economy (CE) through qualitative inquiry. The rebound effect, known originally from the energy efficiency literature, occurs when improvements in efficiency or other technological innovations fail to deliver on their environmental promise due to (behavioral) economic mechanisms. This can happen as a result of insufficient substitution, e.g. when firm activities in secondary production (remanufacturing, recycling etc.) do not substitute or displace primary production, accumulating environmental impacts instead of replacing raw material extraction. Additionally, price effects can generate rebound, when innovations reduce costs, lower prices and subsequently raise demand, increasing net usage of a good or material. The presence of rebound can therefore lead to the structural overstatement of environmental benefits of certain innovations, which can influence reaching emission targets and the preference order of recycling. In this research, the CE rebound effect is investigated in the Dutch textile industry, which is identified as being prone to rebound, yet with a positive potential to avoid it. The main findings include realizations about the low to nonexistent awareness of this effect amongst organizations, and the identification of specific and general instances of rebound effects in the investigated industry. Causes and possible mitigating actions are discussed. In addition, the occurrence of these effects are placed in a larger context in order to gain a more comprehensive understanding about the place and role of this effect in the current transition towards a circular economy. This concerns the dire necessity for a new approach to how design has been practiced traditionally, and the need to place transitional developments in a systems perspective. This led to practical and theoretical recommendations about how to deal with rebound effects in order to foster an effective transition in which environmental benefits are actually realized, whilst simultaneously taking a more conscious and system-based approach to economic reform. This includes recommendations for the Dutch Circular Textile Valley initiative, as an entity for the development of a circular textile industry in the Netherlands. Finally, suggestions for further research include the reframing of the discourse on rebound effects when applying it in a CE context, abandoning antiquated research methods based on crumbling neoclassical assumptions. Key Words: Circular Economy, Rebound effect, Textile industry, Value, Design, Systems perspective 2 Preface Thank you for reading my thesis. Writing this thesis has been a very rewarding experience for me, both personally and academically. First, I would like to express special thanks to my supervisor Kim. Not only for allowing me to work with and explore this rather unfamiliar and at times elusive topic, but also for keeping me on track, providing valuable insights and comments, connecting me to thought-provoking informants, and doing all of this whilst conveying a high level of trust in my abilities. This gave me the strength to write with confidence and to fully explore my academic eloquence whilst maintaining the necessary diligence. Thank you for putting up with my occasionally stubborn convictions. Another special word of thanks is in place for who has arguably been the most engaged informant, Douwe Jan Joustra, for taking the time and effort beyond the expected, and further stimulating critical systems thinking. In addition, I want to thank David Font Vivanco, who has been referenced throughout, for having a conversation with me in the starting phase of this research, helping me navigate this tricky subject. All of the interviewed informants have had a valuable contribution to this research; not only for their practical contributions, but also through the honest and engaging interest they have shown for my project, motivating me to get the most out of it. Thank you all for really trying to engage openly with me, and being enthusiastic in the process. Finally, I hope this research sparks and inspires thoughts and conversations about moving forward, both towards a circular economy, but also beyond that. One of the goals of this research was to illustrate the deeper flaws of our current system of economics as they relate to contemporarily proposed solutions such as the circular economy, using rebound effects as a lens. The circular economy is not the end of history, just as our current system is not. I’m not here to provide the answers to the deeply rooted and pervasive problems we face, all I can do is advocate a thought-process that I think might lead us to them, standing on the shoulders of all who did so before me. I actively invite you to disagree with me. Honest academic discourse has no losers: only winners and learners. So let us continue to win and learn. 3 Table of Contents 1. Introduction ............................................................................................................................ 6 1.1 Research scope and aim ................................................................................................... 9 1.2 Research Questions ........................................................................................................ 11 2. Theoretical Framework ........................................................................................................ 13 2.1 The classic rebound effect .............................................................................................. 13 2.2 The environmental rebound effect (ERE) ...................................................................... 14 2.3 Eco-efficiency and Cradle-to-Cradle .............................................................................. 17 2.4 Circular Business Models and CE Strategies ................................................................. 19 2.5 CE rebound ..................................................................................................................... 21 2.5.1 Mitigating rebound effects ...................................................................................... 23 2.5.2 Market Cannibalization ........................................................................................... 25 2.6 Circular transition in the textile industry ........................................................................ 26 2.7 Wrap-up .......................................................................................................................... 27 3. Methodology ........................................................................................................................ 28 3.1 Methodological approach ............................................................................................... 28 3.2 Research Setting ............................................................................................................. 28 3.3 Data Collection Strategy ................................................................................................ 29 3.3.1 Angle 1: Industry experts / NGOs ........................................................................... 30 3.3.2 Angle 2: Circular Textile Businesses ...................................................................... 30 3.3.3 Angle 3: Dutch Circular Textile Valley – Arnhem/Wageningen Hub .................... 30 3.4 Data Analysis ................................................................................................................. 31 3.4.1 Step one: First- & second-order coding .................................................................. 32 3.4.2 Step two: Creating code families (second-order coding / themes) .......................... 32 3.4.3 Step three: Arriving at aggregate dimensions & data structure ............................... 33 3.5 Validity and reliability considerations ........................................................................... 34 4. Findings ................................................................................................................................ 36 4.1 Rebound Effects ............................................................................................................. 36 4.1.1 Awareness ............................................................................................................... 36 4.1.2 Examples of CE Rebound in the textile industry .................................................... 37 4.1.3 Causes of CE Rebound ............................................................................................ 40 4.1.4 Mitigating Rebound ................................................................................................. 41 4.2 New Design Approach ................................................................................................... 43 4.2.1 Supply-chain collaboration, transparency & integrated design ............................... 44 4 4.2.2 Understanding Circularity ....................................................................................... 45 4.2.3 Circular Business Models .......................................................................................
Load more

Recommended publications
  • Towards a More Resource-Efficient and Circular Economy the Role of The
    Towards a more resource-efficient and circular economy The role of the G20 | 1 A background report prepared for the 2021 G20 Presidency of Italy Towards a more resource-efficient and circular economy The role of the G20 PUBE TOWARDS A MORE RESOURCE-EFFICIENT AND CIRCULAR ECONOMY © OECD 2021 2 | Table of contents Executive Summary 4 1. Introduction 9 2. Past trends in material consumption and waste generation 10 3. Projections of future materials use 18 4. The environmental impacts of materials use 21 5. A transition to a circular economy can lower resource demands and environmental impacts and contribute to the economic and social recovery 24 6. Recent developments on resource efficiency and circular economy policies 27 7. The role of cities towards the circular economy transition 32 8. Towards a G20 policy vision on resource efficiency 38 References 47 TOWARDS A MORE RESOURCE-EFFICIENT AND CIRCULAR ECONOMY © OECD 2021 | 3 Tables Table 1. Selected environmental impacts of materials use 21 Table 2. Selected examples of national, regional and local strategies for resource efficiency, waste management and the circular economy of G20 countries 27 Figures Figure 1. Domestic Material Consumption in G20, OECD and BRIICS 10 Figure 2. Domestic material consumption per capita [tonnes] 11 Figure 3. Resource productivity levels differ substantially among G20 countries, but some improvements could be achieved 12 Figure 4. Despite improvements in resource productivity, domestic material consumption increased in G20 countries 13 Figure 5. Material footprint per capita remains high also for countries with low Domestic Material Consumption per capita 14 Figure 6. As income levels rise, waste generation increases [left], but waste treatment processes improve [right] 15 Figure 7.
    [Show full text]
  • Extended Producer Responsibility and the Impact of Online Sales
    Extended Producer Responsibility and the Impact of Online Sales RE-CIRCLE POLICY HIGHLIGHTS Resource Efficiency & Circular Economy Project Extended Producer Responsibility and the Impact of Online Sales Extended Producer Responsibility (EPR) schemes generate much needed funding for waste management and can be an effective means of boosting collection and recycling rates. However, free-riding associated with the rapid growth of online sales is compromising the viability of these schemes, and has led to the realisation that additional measures are needed to support their operation. RE-CIRCLE Resource Efficiency & Circular Economy Project Key Messages The emergence of the internet, and the resulting growth in online retailing, has improved market access and generated important benefits for consumers. At the same time, online retailing – particularly where it exists in concert with cross-border sales – has begun to adversely affect the functioning of traditional regulatory frameworks. Free-riding on Extended Producer Responsibility (EPR) schemes – where products placed on the market are not accompanied, or only partially accompanied, by required EPR fees – is one such example. Consumers now have much improved access to sellers abroad but, in many cases, these sellers do not comply with EPR regulations in the country of sale. This creates several problems: • Free-riding that consists in not undertaking physical ‘take-back’ obligations leads to lower collection rates for end of life products. • Free-riding by not paying EPR fees results in financing problems for waste management activities. • Free-riding by under-estimating the number of products placed on the market results in a potential over-estimation of national recycling rates.
    [Show full text]
  • 3.2 Plastics and Eco-Labelling Schemes
    1 Contents 1 Introduction ..................................................................................................................... 3 2 Added value & strategic orientation of PLASTECO workshops ........................................... 4 3 Thematic background ....................................................................................................... 5 3.1 Green Public Procurement (GPP) for promoting alternatives to single-use plastics ....... 5 3.1.1 Policy framework .............................................................................................. 5 3.1.2 Case study 1: Different governmental approaches from Slovakia and Belgium ... 7 3.1.3 Case study 2: GPP criteria for eliminating single-use plastic cups and bottles in medical centres ................................................................................................................ 8 3.1.4 Case study 3: Public procurement as a circular economy enabler ...................... 10 3.2 Plastics and eco-labelling schemes .............................................................................. 10 3.3 Developing secondary raw plastic markets ................................................................. 14 3.3.1 The need to align supply and demand .............................................................. 14 3.3.2 The role of waste management ........................................................................ 16 3.3.3 Case study: Developing new methods for higher-quality secondary plastics ...... 18 3.4 Barriers to the adoption
    [Show full text]
  • Circular Economy Action Plan for a Cleaner and More Competitive Europe
    Circular Economy Action Plan For a cleaner and more competitive Europe #EU GreenDeal 2 Contents 1. INTRODUCTION .......................................................................... 4 2. A SUSTAINABLE PRODUCT POLICY FRAMEWORK ................. 6 2.1. Designing sustainable products .................................................................. 6 2.2. Empowering consumers and public buyers .................................................... 7 2.3. Circularity in production processes ............................................................................... 8 3. KEY PRODUCT VALUE CHAINS .................................................................................................. 10 3.1. Electronics and ICT ............................................................................................................................. 10 3.2. Batteries and vehicles ........................................................................................................................... 11 3.3. Packaging .......................................................................................................................................................... 11 3.4. Plastics ................................................................................................................................................................... 12 3.5. Textiles ....................................................................................................................................................................... 13 3.6.
    [Show full text]
  • The Nordic Swan Ecolabel Promotes Circular Economy
    The Nordic Swan Ecolabel promotes circular economy The Nordic Swan Ecolabel is an obvious tool for promoting The Nordic Swan Ecolabel has a circular approach to the life circular economy - thus strengthening corporate cycle and this particular approach is a premise for circular competitiveness, enhancing corporate resource efficiency economy. Because this means that focus is on how actions and contributing to the creation of new business models and taken in one stage have a positive effect on several stages of innovative solutions. the life cycle. And this means that you avoid moving a nega- tive environmental impact to another stage of the life cycle. The objective of the Nordic Swan Ecolabel is to reduce the overall environmental impact of consumption. This is why the Circular economy does not only mean focus on closed re- whole product life cycle – from raw materials to production, source loops for the individual product system. Joint circular use, disposal and recycling – is included in the assessment resource systems may also be the solution. The Nordic Swan when the requirements for Nordic Swan Ecolabelled products Ecolabel shares this approach; for some products, joint circu- are established. This is primarily done on the basis of the lar resource systems will be more effective and will as such following six parameters: be preferable. Requirements for renewable, recycled There are several ways to stimulate circular economy in the and sustainable raw materials life cycle of the product or service. In general, it is important to focus on an efficient and sustainable use of resources and Strict chemical requirements on safe materials without problematic chemicals, so they can be recycled.
    [Show full text]
  • Disentangling Circular Economy, Sustainability, and Waste Management Principles
    ISSUE BRIEF 07.29.21 Disentangling Circular Economy, Sustainability, and Waste Management Principles Rachel A. Meidl, LP.D., CHMM, Fellow in Energy and Environment With the introduction of circular economy to a regenerative circular system where the (CE) principles in major regions of the societal value of products, materials, and world, interest in the concept has increased resources is maximized over time. significantly in the past several years. It is Ubiquitously interwoven into the gaining momentum in the political, economic, decarbonization, energy transition, and and scientific fields and growing in popularity waste minimization narrative is the in corporate strategies. Local and national term “sustainability,” arguably the most governments—including China, Japan, misconstrued descriptor of the decade the U.K., France, Germany, Canada, the and oftentimes used in conjunction or Netherlands, Sweden, and Finland—are also synonymously with CE. Although there is a embracing CE principles. China, ostensibly relationship between sustainability and a CE, the global trailblazer in CE, has made circular these two concepts are vastly distinct. strategies a part of their national priorities since the early 2000s, recently releasing its 14th Five-Year Plan (2021-25).1 The concept SUSTAINABILITY: A SYSTEMS-LEVEL was introduced to the mainstream by the APPROACH Ellen MacArthur Foundation and is heavily Sustainability in its truest form is a systems- promoted by the European Union. Although level approach that considers the wide array the United States does not have a national of environmental, social, and economic CE strategy, the framework is trickling into A comprehensive factors associated with a process or product federal and state-level policy discussions understanding of the and assesses how they interact (Figure 2).
    [Show full text]
  • Exergy As a Measure of Resource Use in Life Cyclet Assessment and Other Sustainability Assessment Tools
    resources Article Exergy as a Measure of Resource Use in Life Cyclet Assessment and Other Sustainability Assessment Tools Goran Finnveden 1,*, Yevgeniya Arushanyan 1 and Miguel Brandão 1,2 1 Department of Sustainable Development, Environmental Science and Engineering (SEED), KTH Royal Institute of Technology, Stockholm SE 100-44, Sweden; [email protected] (Y.A.); [email protected] (M.B.) 2 Department of Bioeconomy and Systems Analysis, Institute of Soil Science and Plant Cultivation, Czartoryskich 8 Str., 24-100 Pulawy, Poland * Correspondance: goran.fi[email protected]; Tel.: +46-8-790-73-18 Academic Editor: Mario Schmidt Received: 14 December 2015; Accepted: 12 June 2016; Published: 29 June 2016 Abstract: A thermodynamic approach based on exergy use has been suggested as a measure for the use of resources in Life Cycle Assessment and other sustainability assessment methods. It is a relevant approach since it can capture energy resources, as well as metal ores and other materials that have a chemical exergy expressed in the same units. The aim of this paper is to illustrate the use of the thermodynamic approach in case studies and to compare the results with other approaches, and thus contribute to the discussion of how to measure resource use. The two case studies are the recycling of ferrous waste and the production and use of a laptop. The results show that the different methods produce strikingly different results when applied to case studies, which indicates the need to further discuss methods for assessing resource use. The study also demonstrates the feasibility of the thermodynamic approach.
    [Show full text]
  • The Sustainability of Waste Management Models in Circular Economies
    sustainability Article The Sustainability of Waste Management Models in Circular Economies Carmen Avilés-Palacios 1 and Ana Rodríguez-Olalla 2,* 1 Escuela Técnica Superior de Ingeniería de Montes, Forestal y del Medio Natural, Universidad Politécnica de Madrid, c/José Antonio Novais 10, 28040 Madrid, Spain; [email protected] 2 Departamento Economía de la Empresa (ADO), Economía Aplicada II y Fundamentos Análisis Económico, Universidad Rey Juan Carlos, Paseo de los Artilleros s/n, Vicálvaro, 28032 Madrid, Spain * Correspondence: [email protected]; Tel.: +34-910671632 Abstract: The circular economy (CE) is considered a key economic model to meet the challenge of sustainable development. Strenous efforts are focused on the transformation of waste into resources that can be reintroduced into the economic system through proper management. In this way, the linear and waste-producing value chain problems are solved, making them circular, and more sustainable solutions are proposed in those chains already benefiting from circular processes, so that waste generation and waste are reduced on the one hand, and on the other, the non-efficient consumption of resources decreases. In the face of this current tide, there is another option that proposes a certain nuance, based on the premise that, although circular systems promote sustainability, it does not mean that they are in themselves sustainable, given that, in the first place, the effects of CE on sustainable development are not fully known and, on the other hand, the CE model includes the flow of materials, with only scant consideration of the flow of non-material resources (water, soil and energy).
    [Show full text]
  • From Circular Economy to Circular Ecology: a Review on the Solution of Environmental Problems Through Circular Waste Management Approaches
    sustainability Review From Circular Economy to Circular Ecology: A Review on the Solution of Environmental Problems through Circular Waste Management Approaches Luca Adami and Marco Schiavon * Department of Civil, Environmental and Mechanical Engineering, University of Trento, Via Mesiano, 77, I-38123 Trento, Italy; [email protected] * Correspondence: [email protected]; Tel.: +39-0461-282605 Abstract: (1) Background: The application of concepts linked to the circular economy (CE) has led to a sudden development of studies in numerous fields. However, the level of environmental sustainability of CE strategies could be improved and this topic deserves more attention by the scientific community. This research addresses this gap and aims at presenting a new concept, named circular ecology (CEL), and its application to the field of waste management. (2) Methods: The paper presents a literature review on the criticalities of CE and on examples of studies that implement the CEL principles. (3) Results: The review highlights that CEL principles are widely applied to several fields of waste management, showing promising opportunities to export the results to other geographical contexts. (4) Conclusions: If supported by governments, CEL approaches may allow solving multiple environmental problems at once, with clear economic, time, resources, and emission savings. Keywords: environmental sustainability; recycling; recovery; reuse; anaerobic digestion; biochar; biofuels; case studies; organic waste Citation: Adami, L.; Schiavon, M. From Circular
    [Show full text]
  • How Circular Economy Practices Help to Achieve the Sustainable Development Goals
    Circular Economy & SDGs How circular economy practices help to achieve the Sustainable Development Goals Foreword Tjerk Opmeer, Netherlands Enterprise Agency When Dutch entrepreneurs have ambitions to take their business abroad, they can count on the Netherlands Enterprise Agency to help them. We aim to improve opportunities for entrepreneurs, strengthen their position and realise their international ambitions through funding, networking, know- how and support for compliance with laws and regulations. The Netherlands Enterprise Agency is dedicated to helping Dutch sustainable, agricultural, innovative and international businesses develop and grow in markets around the world. In 2015, 193 nations agreed to tackle the world’s biggest challenges by approving the Sustainable Development Goals. It set out a framework that now serves as a joint starting point for a conversation about ambitions and possibilities for entering into new partnerships. We set about working with the SDGs immediately. For instance, the Netherlands Enterprise Agency implements the SDG Partnership facility (SDGP), a Ministry of Foreign Affairs programme that contributes to the implementation of the agenda for aid, trade and investment. The SDGP focusses on three major cross-cutting themes: gender, circular economy and climate. That is why we increasingly see a connection between the UN Sustainability Goals and the transition to a circular economy in our daily activities. Exploring, debating and making actions visible in the relationship between circular practices and the SDGs is therefore relevant to the continued development of new, innovative solutions. We see promising opportunities for business partnerships in a great variety of sectors, with the circular economy as a cross-cutting theme.
    [Show full text]
  • The Relationship Between the Circular Economy and Sustainable Waste Management in European Union
    Journal of Business Administration Research | Volume 04 | Issue 01 | January 2021 Journal of Business Administration Research http://ojs.bilpublishing.com/index.php/jbar ARTICLE The Relationship Between the Circular Economy and Sustainable Waste Management in European Union Marcuta Liviu Panait Razvan Marcuta Alina* University of Agronomic Sciences and Veterinary Medicine of Bucharest,59, Marasti BId, District 1, Bucharest, 011464, Romania ARTICLE INFO ABSTRACT Article history Modern life has contributed both to increasing living standards, increas- Received: 16 December 2020 ing comfort and the development of society, but also to increasing the amount of waste that suffocates the planet and threatens the existence of Accepted: 12 January 2021 present and future generations. Among the solutions that are sought and Published Online: 31 January 2021 that are included in various programs and policies, the concept of circular economy is one that is increasingly discussed when talking about the sus- Keywords: tainable development of society. The circular economy implies a reduc- Circular economy tion of the natural resources consumed due to both recycling and their fair consumption. At the U.E. level the foundations have been laid for policies Waste aimed at waste management to ensure the application of the principles of Sustainability the circular economy. European policies Considering the importance that the quantification of the indicators for implementing the circular economy have on the elaboration of more effi- cient policies, but also on the determination of the degree of implemen- tation of this concept, in this paper we intend to analyze the evolution of these indicators from 2010-2019, in the European Union using a custom- ized version of the DPSIR model.
    [Show full text]
  • Circular Economy
    CIRCULAR ECONOMY The Japanese concept of mottainai expresses that it is a shame for something to go to waste without having made use of its potential in full — something that happens with regularity in a linear economy. Something old, something new Green Cleaner products production non-toxic, using fewer long-life, resources recyclable Recycle Better service waste, reuse to extend resources lifespan Collect at end-of-life, remanufacture The circular economy is a new By and large, today’s manufacturing takes raw materials from the environment way of creating value, and and turns them into new products, which are then disposed into the environment after use. It’s a linear process with a beginning and an end. In this system, limited ultimately prosperity. It works raw materials eventually run out. Waste accumulates, either incurring expenses by extending product lifespan related to disposal or else polluting—indeed, a 2012 World Bank report estimates through improved design and that municipal waste generation will double over the next 20 years in low-income servicing, and relocating waste countries. On top of that, manufacturing processes are often themselves inefficient, leading to further waste of natural resources. from the end of the supply chain to the beginning—in effect, In a circular economy, however, products are designed for durability, reuse and using resources more efficiently recyclability, and materials for new products come from old products. As much as possible, everything is reused, remanufactured, recycled back into a raw material, by using them over and over, used as a source of energy, or as a last resort, disposed of.
    [Show full text]