Modeling Barriers in Circular Economy Using TOPSIS: Perspective of Environmental Sustainability & Blockchain-IoT Technology

Abstract

Climate change poses a real risk, as does a shortage of resources to accommodate the world's rising population. Every nation is trying to produce maximum without caring for the environment. As a result, the circular economy (CE) is critical to the long-term sustainability of society, business and the environment. Government and policymakers are forcing industries and organizations to adopt or establish CE in their businesses to protect the environment. However, the concept of CE is unclear, and there are various hurdles and barriers to adopting a CE in industries and organizations. For a sustainable environment, CE barrier management plays a crucial role. This paper aims to explore and prioritize barriers to establishing a CE. A detailed methodological literature review is carried out to explore the twenty-nine barriers in CE. The various barriers to CE are prioritized using the Multi-criteria decision-making methods Order of Preference by Similarity to Ideal Solution (TOPSIS). Based on the TOPSIS barrier of increased emission and pollution while recycling was found to be a top rank and the barrier of tedious environmental regulations and lack of government support was found to be at the lowest rank. The top priorities are the barriers to increasing emission and pollution while recycling, radically changing production, and lack of public participation in using recycled products. The Blockchain-IoT architecture and strategies are developed to mitigate all these barriers. As in CE, resources are not ending as these are recyclables since products are made to last several life cycles. Product's lifespans are extended by maintaining, repairing and re-manufacture to reduce carbon footprints in the environment. This barrier ranking will help supply chain professionals and business executives analyze the failure to implement CE in industries. Strategies and architecture based on blockchain-IoT will also help in mitigating the barrier in CE. This study will give new dimensions for the adaption of CE in industries. CE will create sustainable ecosystems for soil, air and water. These sustainable ecosystems provide a long and healthy life for all living things on this planet.

Blockchain and the transition to the circular economy: A literature review

“…Blockchain technology contributes to CE across various domains, including sustainable water management (Zhao et al, 2019), logistics and transportation (Koh et al, 2020), carbon gas emissions control (Biswas et al, 2022), and waste management (Mastos et al, 2021). Nonetheless, Chaudhari et al (2022) identify barriers in transitioning from a linear to a CE. They assert that Blockchain‐IoT integration is essential in overcoming these obstacles.…”

“…Chaudhari et al (2022) emphasize the positive impact of digital technologies on the transition to a CE, through blockchain integration into supply chains, leveraging artificial intelligence for sustainable manufacturing using big data analysis, and adopting CE practices in production companies. Blockchain has the potential to uphold CE principles, including waste management, supply chain optimization, carbon trading, among others (Benitez Martinez et al, 2021).…”

“…Previous studies have identified several gaps related to blockchain's role in supporting the transition to the CE that warrant further investigation in scientific research. These gaps include assessing the impact of blockchain on the EC (Fabiano, 2017), understanding how blockchain can be effectively integrated with other technologies like IoT, AI, and big data to create more comprehensive EC solutions (Chauhan et al, 2022), exploring the privacy and ethical implications of blockchain in the CE, particularly concerning product tracking and personal information (Malgieri & Custers, 2018), addressing the adoption of blockchain in SMEs and identifying strategies to facilitate their participation (Chaudhari et al, 2022), examining resistance to change and behavioral barriers that may arise during the introduction of blockchain in CE processes (Trevisan et al, 2023), evaluating security risks associated with blockchain, including potential vulnerabilities and fraud prevention measures (Min, 2019), addressing the lack of standardization and interoperability between various blockchain systems and potential solutions to overcome these challenges (Yaqoob et al, 2021), and exploring how legislation and regulation can be adapted to accommodate blockchain use in the CE while ensuring compliance with environmental and privacy standards (Macchiavello & Siri, 2022).…”

“…These platforms record all information pertaining to collected goods, as well as operational activities conducted to ensure their proper treatment and second-life utilization. The integration of blockchain, the CE, and incentives represents a revolution in the creation and management of circular systems, potentially bolstering the availability of raw materials(De Giovanni, 2022) Chaudhari et al (2022). contribute to the understanding that organizations can derive benefits from blockchain technology in support of sustainable resource management, reducing waste, and promoting the recycling and reuse of products.…”

“…underscore that blockchain holds considerable potential to motivate and incentivize changes within the CE framework. De Giovanni (2022) supports this notion, suggesting that when circular systems adopt an active return approach, blockchain can activate smart contracts, applicable in both consumer and collector incentive scenarios.Expanding on these arguments,Chaudhari et al (2022) propose that blockchain enhances the value of resources by enabling a novel system for trading natural resources and rewarding individuals engaged in circular activities. Moreover, Böhmecke-Schwafert et al(2022),Khan, Razzaq, et al (2021) andKhan, Zia-ul-haq, et al (2021) posit that blockchain provides a platform for the ecosystem, facilitating both physical and non-physical transactions.…”