Circular economy and linear economy are considered to be opposites of each other in terms of economic models. But what do they actually mean? And how do they compare in terms of waste reduction?
Circular economy refers to an economic model, in which existing materials and products are utilized as much as possible by reusing, returning, repairing and recycling. Thus, the life cycle of the products is extended.
In terms of waste reduction, this means reducing the amount of waste to a minimum. When a product comes to the end of its life cycle, its materials are utilized as much as possible, so they would be valuable again.
The opposite of the circular economy is the “traditional”, linear economic model, where products are manufactured, consumed and thrown away, and thus producing huge amounts of waste. It is also worth remembering that the linear economic model also consumes much more new raw materials and energy, compared to circular economy model.
The linear economic model can be seen as the result of cheap and abundant natural resources that companies have been able to exploit in producing endlessly new products for consumers. The linear economic model does not take into account the environmental effects or the end of the product’s life cycle, because it is based on consumption and not so much on resource efficiency.
In terms of the environment and waste reduction, it is therefore clear that the circular economy is the more sustainable economic model of the two. In a nutshell in terms of waste reduction, circular economy differs from the linear economic model since waste is not generated because it is already considered and minimized in the design of the products. In a circular economy, raw materials circulate in a closed cycle and so-called “waste” is seen as a valuable material.
Futuristically thinking, it is also worth remembering that the circular economy also has enormous economic potential, when thinking about new, sustainable business opportunities which occur when we are moving more and more from linear economic model towards a circular economy.
