Circular Economy Business Models: A Critical Examination

In recent decades, increasing numbers of scholars and practitioners have rejected the conventional, "linear" view of economic activity (centered on "take, make, and dispose") in favor of a "circular economy" perspective, which emphasizes the need for humans to live in harmony with Earth's ecological system. As a consequence, various contemporary business models claim to draw inspiration from this new perspective. However, our critical examination reveals that many of these models say little about-and, on their own, may contribute little to achieving-ecological sustainability. We conclude by stressing the need for public policies that enable society to pursue what institutionalists call "higher efficiency."