Quantifying circularity factor of waste: Assessing the circular economy potential of industrial zones

This study offers essential metrics for informed decision-making in the context of transforming traditional industrial estates into circular economies. The study conducts a systematic analysis of an existing industrial zone, demonstrating its potential transition towards a circular approach while assessing its economic viability and avenues for enhancement. The paper unfolds as follows: It initially presents a comprehensive methodology for quantifying the economic value added through recycling within the industrial zone. Subsequently, it introduces a method to compute the economic value associated with the remaining waste generated within the industrial zone. The paper then proposes a novel approach for determining the circularity factor of an industrial zone, effectively quantifying the degree of circularity achieved within the zone. Finally, it integrates circular economic principles and outlines a framework to assess the circularity value across the entire manufacturing process, reducing waste and reintegrating it into the material supply chain. The study provides a robust methodology for calculating circular value addition within an industrial zone. Furthermore, these metrics are applied to Biyagama Export Processing Zone (BEPZ), in Sri Lanka as part of the study's empirical analysis. The circularity factor of the zone was 0.4, and it clearly identifies that the total economic value addition of the zone can be maximized through the practice of a circular economy.