Abstract:The role of the circular economy has attracted increased attention amongst practitioners and policymakers in recent years. It has been broadly developed and applied at different levels (micro, meso and macro) in developed countries. However, to date, the possibility of a circular economy in Indonesia has not been widely explored or discussed by city actors. This gap in research represents an opportunity to investigate options that may foster the adoption of circular economy principles and practices. Which aspe… Show more
“…, 2022a). Consequently, government regulations must sustain environmental attention (Nurdiana et al. , 2021).…”
Section: Introductionmentioning
confidence: 99%
“…Second, CE is at an early implementation stage and faces many challenges, particularly infrastructure and regulation (Fatimah et al. , 2020; Nurdiana et al. , 2021).…”
Section: Introductionmentioning
confidence: 99%
“…First, Indonesia is a developing country with 64.5 million SMEs continuously growing and potentially boosting national economic growth (Arsawan et al, 2022a). Consequently, government regulations must sustain environmental attention (Nurdiana et al, 2021). Second, CE is at an early implementation stage and faces many challenges, particularly infrastructure and regulation (Fatimah et al, 2020;Nurdiana et al, 2021).…”
PurposeThe present study aims to examine the relationship between green economic incentives (GEIs) and environmental commitment (EC) as drivers of the circular economy (CE) practices in small and medium enterprises (SMEs).Design/methodology/approachA cross-sectional study of 594 assistant managers and SME managers was used while data were analyzed through Smart PLS.FindingsThe results showed that GEIs positively affect the SMEs' EC and the CE practice model. Furthermore, EC is the mediator between GEIs and the three CE practices: internal environmental management, eco-design and corporate asset management and recovery (CAM&R).Practical implicationsThe present study provided a basis for understanding the relevance of SMEs' CE practices and designing a strategic plan for its implementation. Also, it provides insight into that collaboration between triple helix (the government, SMEs and the community) is needed in increasing environmental awareness toward sustainability.Originality/valueThis study enhanced the natural resource-based view (NRBV), describing the mechanisms that view GEIs and EC as pollution prevention in CE practice.
“…, 2022a). Consequently, government regulations must sustain environmental attention (Nurdiana et al. , 2021).…”
Section: Introductionmentioning
confidence: 99%
“…Second, CE is at an early implementation stage and faces many challenges, particularly infrastructure and regulation (Fatimah et al. , 2020; Nurdiana et al. , 2021).…”
Section: Introductionmentioning
confidence: 99%
“…First, Indonesia is a developing country with 64.5 million SMEs continuously growing and potentially boosting national economic growth (Arsawan et al, 2022a). Consequently, government regulations must sustain environmental attention (Nurdiana et al, 2021). Second, CE is at an early implementation stage and faces many challenges, particularly infrastructure and regulation (Fatimah et al, 2020;Nurdiana et al, 2021).…”
PurposeThe present study aims to examine the relationship between green economic incentives (GEIs) and environmental commitment (EC) as drivers of the circular economy (CE) practices in small and medium enterprises (SMEs).Design/methodology/approachA cross-sectional study of 594 assistant managers and SME managers was used while data were analyzed through Smart PLS.FindingsThe results showed that GEIs positively affect the SMEs' EC and the CE practice model. Furthermore, EC is the mediator between GEIs and the three CE practices: internal environmental management, eco-design and corporate asset management and recovery (CAM&R).Practical implicationsThe present study provided a basis for understanding the relevance of SMEs' CE practices and designing a strategic plan for its implementation. Also, it provides insight into that collaboration between triple helix (the government, SMEs and the community) is needed in increasing environmental awareness toward sustainability.Originality/valueThis study enhanced the natural resource-based view (NRBV), describing the mechanisms that view GEIs and EC as pollution prevention in CE practice.
“…This circular economy is tendency that stems from the strength of international political capital, foreign policy lobbying and China's financial capital which influence sustainable orders [8]. A sustainable order is a necessity in sustainable economic activities by considering and paying attention to the value chain in production and consumption patterns with an ongoing material cycle [20].…”
Section: Circular Economymentioning
confidence: 99%
“…Modernization is characterized by the belief that the use of sustainable technology can be mediated by the state and the market that intervenes in social relations, industrial practices, and regulatory regimes that encourage green economy practices [10]. Indonesia's ecological modernization is understood to use the implementation of a circular economy which is a problem solving in dealing with climate change and continuing sustainability that can be implemented in cities in Indonesia [20]. The implementation of a circular economy is believed to have a positive effect on the level of employment, green investment and the creation of a workforce that considers environmental aspects.…”
Section: Ecological Modernization Of Periphery Countriesmentioning
The circular economy is the application of sustainable industrial behavior through the implementation of low-carbon technology. Electric vehicles are one of the low-carbon technologies that are a priority for sustainable business policies in Indonesia. Ecological modernization is characterized by the existence of policy-based structures and mechanisms that support sustainable technologies. The ecological modernization study observed in this paper is a policy instrument for developing sustainable infrastructure and technology that supports sustainable business through Presidential Regulation Number 55 of 2019. In addition, the government has issued a ban on nickel ore exports since January 1, 2020. However, the ban on Indonesia’s nickel ore exports has become a free trade dispute through the European Union’s lawsuit to the WTO (World Trade Organization). The transformation of Indonesia’s circular economic policy faces the dilemma of the global free trade structure. Furthermore, the transformation of Indonesia’s circular economy policy provides a perspective that ecological modernization is a business with a new, greener face that does not touch the transformation of the order of power relations in a just global structure. However, the circular economy narrative focuses more on the agenda of building business opportunities that lacks narratives on the reorganization of ecological relations.
Circular economy (CE) is an interesting approach by many countries to address global environmental problems while gaining economic benefits. The implementation of CE is expected to minimize the use of resources and materials, thus contributing to sustainable development. Much literature has discussed CE assessment indicators and their evaluation, however to date, no single indicator has been proposed that can comprehensively measure the macro level of CE implementation. This study aims to develop a CE index to measure CE implementation at macro levels. In addition, it provides an overview of the impact of CE implementation on the financial, social, and environmental aspects of the economy. To this end, first, an in-depth literature review and descriptive analysis is conducted to identify existing global CE indicators and classify them into financial, social, and environmental categories based on available primary and secondary data. Then, the CE index is constructed using a mathematical equation by considering the CE framework, a single indicator of each aspect as a variable, and the variable’s weighting. Finally, the CE index is applied to evaluate the level of CE implementation of CE in Indonesia at macro level. This index is expected to be a valuable tool for measuring CE implementation and therefore improving CE performance.
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