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This chapter focusses on the links between economic ideas, sustainability and the circular economy. Economics begins with the view that all resources are scarce and careful and informed choices must be made to ensure resources are used efficiently and not wasted. Given the fundamental importance of markets to human resource allocation decisions, unless economic concepts, especially markets and prices, are used to help transition towards the circular economy, a sustainable economic growth process is unlikely to be achieved. Economists have long grappled with the problems of resource depletion, unsustainable growth and intergenerational equity. Their ideas and views about the interconnection between markets, the environment and resource use have been in existence for several centuries. While frequently overlooked, some of these ideas have important insights for sustainable development and the implementation of a circular economy. The chapter will consider how economic concepts could be used to help society transition to a circular economy. It will also argue that difficulties with the implementation of a circular economy lie less with the application of economic instruments, and more with the political and institutional constraints that reduce our ability to think creatively and innovatively about ‘cradle-to-cradle’ processes.

Conventional shopping-scapes are designed to promote a linear form of consumption. Products are moved from production systems through consumer distribution nodal points. The consumption of commodities through these points is promoted as the main, if not only, legitimate activity of shopping centres. A circular economic (CE) paradigm offers an alternative to the current model of linear consumption so that there are restorative processes to ensure products, components and materials are valued at all stages of product life (Ellen Macarthur Foundation, 2013). However, this model, like its contemporary linear model, overlooks the opportunities for more socially rewarding consumption that could particularly be addressed through the shopping scape. The ByeBuy! Shop was conceived to test ideas on an alternative shopping scape to increase social engagement and reduced consumption without the use of money for exchange. Accordingly, it is used here to exemplify a CE paradigm.

This chapter discusses the profound and influential impact the construction industry has on the national economy, together with the huge negative effect it has on the environment. It argues that by adopting smart and industrialised prefabrication (SAIP), the Australian construction industry, and the construction industry globally, is well positioned to leverage the circular economy to advance future industries with less impact on our natural environment. It discusses aspects of the application of digital technologies, specifically building information modelling, virtualisation, augmented and virtual reality and 3D printing, coupled with reverse logistics as a proponent for advancing the circular economy through smart, digitally enabled, industrialised prefabrication. It further postulates a framework for SAIP for the circular economy.

Fashion/textile small- to medium-sized enterprises (SMEs) are currently adding value to previously discarded textile waste by applying practical skills, knowledge and expertise to rework and reuse this material. As a result, sustainable design strategies such as zero-waste pattern-cutting, design for disassembly and upcycling are beginning to emerge. However, the scope for redesign will always be limited and the complete lifecycle of the material used needs to be considered at the front-end of the innovation process, to optimise material lifespans and reduce consumer waste. Further work is also required to inspire and educate the next generation of designers to the creative potential of reuse, and help the industry to understand its viability, scalability and role in the future. This chapter explores how the principals of the circular economy might support business model innovation within fashion and textiles. To this end, an exploratory canvas tool for SMEs, ‘Circular by Design’, was devised to aid SMEs to embrace closed-loop systems and to identify the most appropriate sustainable design strategies for their business.

In the face of increasing resource insecurity, environmental degradation and climate change, more governments and businesses are now embracing the concept of the circular economy. This chapter presents some historical background to the concept, with particular attention paid to its assumed opposite, the ‘linear’ or growth economy. While the origins of the circular economy concept are to be found in 1960s environmentalism, the chapter draws attention to the influence of the then ‘new’ sciences of ecology and ‘cybernetics’ in shaping the public environmental discourse of the period. It also draws attention to the background of the present linear economy in postwar policies that encouraged reconstruction and a social and economic democratisation across the West, including an expansion of mass-consumption. It emphasises the role of the 1960s counterculture in generating a popular reaction against this expansionary growth-based agenda, and its influence in shaping subsequent environmentalism, including the ‘metabolic’ and ecological economic understanding of the environmental crisis that informs the concept of the circular economy. Reflecting upon this historical preamble, the chapter concludes that more attention should be paid to the economic, cultural and social contexts of consumption, now more clearly the main driver of our global environmental crisis. Without now engaging more directly with the ‘consumption problem’, the chapter argues, it seems unlikely that the goals of the circular economy can be met.

In debates about recycling and the circular economy, the role of existing organisations that already facilitate the circulation of materials through society can be neglected. Indeed, the social enterprise sector may currently be more significant than the commercial waste management sector in facilitating the circular economy within Australia. Drawing on interviews with organisations involved in collecting and reprocessing used electronics and scrap metal in Australia, the authors detail some of the synergies and tensions between the social enterprises and commercial organisations that have emerged as recycling gains traction through government policy and various forms of product stewardship. The authors conclude with suggestions for policy and governance approaches most likely to facilitate productive and perhaps symbiotic relationships between the two sectors in the future.

The circular economy (CE) requires that ‘used’ materials continue to be in circulation after their initial use has finished. Materials are typically sourced in the building industry as new materials in bulk that carry guarantees of safety, quality and delivery. The distributed and diverse origins of used materials mean that they do not normally carry these guarantees. Furthermore, existing potential procurement systems for reused materials such as eBay allow users to present their auctions in a loosely structured form that can make it difficult to manage and procure multiple items to satisfy the quantities, condition and type required by the contractor. Therefore, this chapter proposes an information system to support the agile procurement of used materials at a scale that is appropriate for construction projects to support the CE. It describes the development of a tool called ‘JunkUp’ that would allow multiple auctions of similar items from diverse sellers to be managed as a single item. Based on this system, in future work, it should be possible to use this tool to test strategies to address the risk to safety, quality and delivery of reused materials in construction. This should ultimately lead to the opportunity to increase material reuse (and reduce waste) in the building and construction sector and support an agile CE for the building industry.