Linking Resource Efficiency - The Conceptual Framework of Circular Economy Business Model Creation
Maydawati Fidellia Gunawan, Moses L. Singgih

Institut Teknologi Sepuluh Nopember

Abstract

Resource efficiency and the circular economy have an important role in environmental and also economic policies. The main point of the circular economy is to preserve resources in the economy when the product is no longer working so that materials can be reused and therefore generate more value. The efficient use of resources benefits society and the economy in the long run by protecting the world we live in and reducing dependence on the natural resources on which economies depend. This paper presents a proposed conceptual framework for designing and defining a circular economy business model. The proposed conceptual framework combines the concept of resource efficiency with a resource value mapping approach and the circular economy concept with back-casting and eco-design approaches. With this integration, it is expected to provide an alternative circular economy business model that can be implemented properly because it takes into account aspects of current technical measurements and tactical formulations for the future. In this framework consists of four sequential stages which include the stages of planning, analysis, optimization, and rethink & redesign. Stages are developed in several steps. Finally, this paper discusses the limitations of the research and proposes some of the opportunities and challenges in developing the proposed framework for future research.

Keywords: resource efficiency, circular economy, business model creation

Topic: Business and Economic