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The Circular Economy - Benefits and Barriers for the future



A study on The Circular Economy – Benefits and Barriers for the future


Written by Dr Suresh Kumar Sharma, Dean, GN Group of institution, Greater Noida,(U.P) INDIA and Dr. Jwala Devi, Assistant Professor, GN group of institution, Greater Noida, (U.P) INDIA




ABSTRACT


Circular economy (CE) is a supportable development strategy that is being proposed to tackle urgent problems of environmental humiliation and resource shortage. There are 3R principles reduce, reuse and recycle materials of circular economy. For supported the healthy society and resources, renewables all materials and rebuild the active support. This study based on is a review of the briskly growing literature on Circular Economy and also cover all concept, practices& assessing its implementation.There are also discussing concept of circular economy compare with the current linear economy of taking materials, producing goods and disposing waste. The main focus of the paper identifies the underlying problems and challenges to CE in an entrepreneurial perspective.in the study also discuss use of circular economy in India as well as their benefits and barriers for the future generation.


Keywords: circular economy, environmental policy, entrepreneurial strategy.


INTRODUCTION TO CIRCULAR ECONOMY


Economics and Environment are closely related with each other. In this Circular economy (CE) with its 3R principles of reducing, reusing and recycling material clearly illustrates the strong linkages between the environment and economics. Pearce and Turner was first time introduced the concept of circular economy. In 1990 in his research Economics of Natural Resources and the Environment they explain the theories within and between economics of natural resources and their interconnection and implications for the concept of how economics works. According to the first law of thermodynamics, those resources used in production and consumption cannot be destroyed and are equal to waste that ends up in the system of environmental. Kenneth Boulding(1966), “ The Economics of Coming Spaceship Earth contemplates the earth as a closed economic system in which the economy and the environment are characterized by a circular relationship where everything is input into everything else”.


Germany was the first runner in this as it started implementing Circular Economy in 1996. This was accompanied by the enactment of the law ‘Closed Substance Cycle and Waste Management Act’. Another example of an attempt to start implementing CE is in Japan. The Government of Japan has developed a comprehensive legal framework for the country’s move towards a recycling-based society (METI, 2004; Morioka et al., 2005). ‘The Basic Law for Establishing a Recycling-Based Society’, which come into force in 2002 provides quantitative targets for recycling and long-term dematerialization of Japanese society (Van Berkel et al., 2009).


China is the third country that is engaged in serious efforts to implement CE on a large scale. However, in contrast to the German and Japanese cases, the Chinese government for various reasons like retaining competitiveness, intends to initially introduce the CE framework on a smaller scale through a number of pilot studies so that it has a better basis for assessing its large scale and full coverage in the longer run. This policy is similar to economic liberalization which started with costal free economic zones.


Several other countries like Sweden have for a long time successively introduced various incentive programs. They have also tried to facilitate optimal conditions for gradual and effective increase in the rate of recycling through public education. The policy has been successful and to the satisfaction of policymakers and environmentalists. Sweden, Germany and several other European countries have managed to incorporate green political parties in their political systems and processes of decision making which have both encouraged and eased a transfer towards a circular economy. Another significant effort by the European Commission (2012) is the European Resource Efficiency Platform (EREP) – Manifesto and Policy Recommendations.



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Dr Suresh Kumar Sharma, author of the study, is acting as IIMM's (Indian Institute of Materials Management) Alternative Delegate of IFPSM.

 

INDIAN INSTITUTE OF MATERIALS MANAGEMENT (IIMM), India


“Indian Institute of Materials Management (IIMM)” with its Headquarters at Navi Mumbai, is the National Apex body representing a wide spectrum of professionals engaged in various facets of Material Management, responsible for planning, sourcing, Logistics & Supply Chain Management.


Through its wide network of 52 branches and 19 chapters having around 9500 members drawn form public and private sectors IIMM is dedicated to the promotion of the profession of Materials Management and with its multifarious activities, including EDP, seminars, workshops, in-house training programs and consultancy assignment & Advance Materials Management Programs & Research Programs.To have more effective global interaction, IIMM is a chartered member of International Federation of Purchasing and Supply Management (IFPSM), which has its members in over 44 countries. In furtherance to its objectives, the IIMM is conducting a Graduate Diploma Course in Materials Management (GDMM) recognized by Govt. of India for appointment of superior posts and services under the Central Government. It also conducts a three-year Post Graduate Diploma Course in Materials Management (PGDMM) by correspondence which is recognized by AICTE. Diploma in Logistics Management a high profile one year distance education program has been launched from July 2000. The Institute has its Centrer for Advanced Management Studies at Mumbai and Centrer for Research in Materials Management (CRIMM) at Kolkata, which are engaged to promote research in Materials Management & also collaborate with industry for furthering the professional advancement of Materials Management & its applications.

Copyright: Indian Institute of Materials Management - India


The Indian Institute of Materials Management (IIMM) - India is a member association of the IFPSM.



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