Exploratory Study on Circular Economy Approaches A Comparative Analysis of Theory and Practice

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14 2 Theoretical Foundations


satisfied with a growing population in the future. However, numerous scientists


have since criticized the report. One of the first critics was H. S. D. Cole in 1973.


He re-used Meadow’s model with different assumptions and arrived at different


results. Other scientists criticizing Meadow’s results and defending economic growth


include W. Beckerman and more recently B. Lomborg (Lomborg 2012; Beckerman


1974). The Danish scientist B. Lomborg pointed to one major subsystem Meadows


et al. missed in their observations. They did not take into consideration the factor


of human ingenuity and the strength innovations can have. Through innovation,


human society can not only increase the use of depleted resources, but can also


increase the ways in which to access untouched resources (Lomborg 2012). This is


not beneficial for the environment in every case which will be explained in more


detail later in this chapter.


Another point of criticism is that Meadows et al. did not come up with a real-

istic solution to stop resource depletion. Current economic systems are based on


growth. It is highly unrealistic to change this growth-based economy concerning


the predicted loss of welfare for the society. Moreover, the suggestion to introduce


restrictive policies regarding birth rates and consumption is unlikely to be followed


in democratic governments but rather in authoritarian systems.


While acknowledging all the criticism mentioned above, Meadows report raised

a lot of awareness in the public realm which engendered further thoughts. As men-


tioned above, decreasing resource reserves lead to an increase in prices. While this


might lead to environmental damaging procedures of resource extraction, there is


also positive side to increased prices. Corporations either start looking for substi-


tutes for these resources or try to increase their resource productivity to achieve


more independence from the respective resource.


Therefore, the question should not be if economic growth can be combined with

environmental concerns but how growth can be combined with preservation of the


environment. To answer the second question resource productivity and eco-effi-


ciency play an important role in the context of environmental concerns and lead


to the concept of decoupling. This concept has the objective of reducing resource


depletion and environmental impact while ensuring economic growth (United


Nations Environment Program 2011). Therefore, decoupling can be understood


as an important factor to ensure long-term economic growth under the condition


of sustainable development.


Resource decoupling describes the process of producing the same amount of

output with a reduced amount of primary resources. This can be achieved by using


less material, energy, water as well as land resource and reusing material. Resource


decoupling can be applied for a production chain, an economic process, a whole

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