2.3 Circular Economy 33
33
This set of indicators provides information which can be analyzed to find outabout the development of the circular economy on a macro and on a meso level.
Despite the development of the indicator system the shift to a circular economyhas not progressed as far as was planned. Three critical areas that challenge the
implementation of the circular economy in China have been identified as:
- Inadequate system of indicators
- Inadequate supporting policies
- Lack of information management system
First, the national circular economy indicator system contains significant weak-
nesses and therefore a substantive revision of the system is required. The system
lacks comprehensive sustainability indicators (Geng et al. 2012). As explained
above, the implementation of circular economy should occur on three levels. The
set of indicators however comprises only two of these levels. There is no guidance
on the micro (organizational) level (Geng et al. 2012). Furthermore, Geng et al.
(2012) perceive the absence of “social indicators, lack of indicators on industrial
symbiosis, lack of indicators for businesses, lack of absolute energy/ material reduc-
tion indicators, lack of prevention-oriented indicators, lack of measurable criteria
and barriers for the implementation” as challenges (Geng et al. 2012, p. 221). The
authors do acknowledge that the indicator system encourages practitioners to
strengthen their commitment to economic, environmental and social changes and
gives decision-makers guidance on how to realize specific goals (Geng et al. 2012).
Second, the dearth of policies to facilitate the implementation of the circulareconomy is identified as another challenge. Policies concerning adequate tax reg-
ulations for recycled and virgin resources, information management to support
the demand for new technologies and a consistent management framework do not
exist yet (Naustdalslid 2014; Geng and Doberstein 2008).
The third challenge which relates to the lack of policy formulation is the lackof an adequate information management system. There is a shortage of academic
programs promoting knowledge and understanding of the concept of the circular
economy. Policy-makers in particular do not possess a sufficient understanding
of the concept (Naustdalslid 2014; Geng and Doberstein 2008). A study conducted
in six cities to evaluate the popularity of the circular economy amongst public
officials concluded that they were better informed than the general public about
the circular economy. 78.6 percent of public officials possessed an awareness of
the circular economy and 3.2 percent claimed they had never heard of it (Xue et
al. 2010). When questioned about what they perceived to be the main challenges