16 2 Theoretical Foundations
2.3.1 Circular Economy in the Context of other New Economy
Models
As a contrast to the current industrial economy, new types of economies have
emerged and gained enormous popularity within the last decade. ‘Collaborative
economy’, ‘restorative economy’, ‘service economy’ and ‘circular economy’ represent
potential replacements of the current take, make and dispose economy (Ellen
MacArthur Foundation 2012). Some of these alternative economic models can be
divided into sub-concepts, as depicted in Figure 1. In order to acquire a clearer view
on this ‘new economy movement’ the following section provides an overview of
these economic models and their sub-concepts. Since in the literature some of these
concepts are oft en used interchangeably it is sometimes diffi cult to diff erentiate
one concept from another.
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Figure 1. In order to acquire a clearer view on this ‘new economy movement’ thefollowing section provides an overview of these economic models and their sub-concepts. Since in the literature some of these concepts are often used interchangeably itis sometimes difficult to differentiate one concept from another.Fig. 1 Illustration of circular economy in the context of other new economy models
(own illustration)
A collaborative economy is a decentralized economy with networks of individuals
and communities instead of institutions. Th is type of economy aims to change the
way of current production, consumption, fi nance and education ( Botsman 2013).
Other phrases describing this kind of economy are: ‘collaborative consumption’and ‘sharing economy’ or ‘peer economy’. Th is type of economy brings together
investors and inventors to share, select, produce and distribute new products (e.g.
http://www.quirk.com)) or foster an ideal utilization of products through redistribution
and shared access (e.g. http://www.airbnb.com)..) Examples include e-businesses such as
http://www.zopa.com which illustrates a new way of fi nancing projects through peer-