Product/Service‐Systems for a Circular Economy: The Route to Decoupling Economic Growth from Resource Consumption?

Abstract

Summary Product/service‐systems (PSS) that focus on selling service and performance instead of products are often mentioned as means to realize a circular economy (CE), in which economic growth is decoupled from resource consumption. However, a PSS is no implicit guarantee for a CE, and CE strategies do not necessarily lead to decoupling economic growth from resource consumption in absolute terms. Absolute resource decoupling only occurs when the resource use declines, irrespective of the growth rate of the economic driver. In this forum paper, we propose a two‐step framework that aims to support analyses of PSS and their potential to lead to absolute resource decoupling. In the first step, we present four PSS enablers of relative resource reduction that qualify as CE strategies. In the second step, three subsequent requirements need to be met, in order to successfully achieve absolute resource decoupling. Conditions and limitations for this accomplishment are discussed. Danish textile cases are used to exemplify the framework elements and its application. We expect that the framework will challenge the debate on the necessary conditions for CE strategies to ensure absolute resource decoupling.

Influence of Reduced Ownership on the Environmental Benefits of the Circular Economy

“…In the literature, a few papers attempt to explain the potential drawbacks of CE models. In order to avoid the risk of relative environmental superiority of products and business models, Kjaer et al (2018) have suggested a two-step strategy from relative to absolute resource decoupling in the context of PSS and CE [19]. They have three requirements for absolute resource decoupling: "ensure net resource reduction, avoid burden shifting between life cycle stages, and mitigate rebound effects".…”

Unlocking the Linear Lock-In: Mapping Research on Barriers to Transition

“…PSS includes preventing or reducing waste through avoiding unnecessary purchases, increasing or extending the usable life of products, and creating value through leveraging unused assets or sharing existing items [35,36]. PSS can be regarded as a subset instrument of realising CE and SE, without any explicit guarantee for reaching the outcomes which the CE initiative aims for [37].…”

The Digital Twin – Birth of an Integrated System in the Digital Age

“…We conclude that from an environmental perspective sustainability management is an important field to Page 5457 consider. In this context, the circular economy is being discussed, a concept that aims to preserve the value of products and resources as long as possible in the economy in order to minimize waste generation [24]. Typical DT services to address this task are, for example, predictive maintenance which can lead to machines remaining usable for longer and continuous monitoring to reduce waste.…”