Sustainability and the Circular Economy

Abstract

Sustainability is a triad including techno-economic efficiency, compatibility with the “Planetary Boundaries”, and equity - enabling a decent quality of life for all. Circular Economy models often focus only on closing material flows in order to increase economic activity or market share. This overlooks the equity dimension. Here we focus on the Performance Economy, which extends the Circular Economy in ways that can enhance equity. The Performance Economy model concentrates on making best use of stocks in the economy, including labour which is a renewable resource. Extending product life through re-use, remanufacturing and reprocessing and shifting from non-renewable inputs (including energy) to renewable inputs (including labour) can improve resource efficiency and increase the supply of rewarding employment. The Performance Economy requires changes in business practices more than technological innovation, including a different view of the functions of value chains, and can be promoted by different approaches to taxation.