Abstract
The objective of this article is to analyze the pre-existing studies that investigate the link between the circular economy and financial aspects in order to understand the evolution of the circular economy literature and its relationship with finance. In addition, it proposes an investigation of empirical evidence of economic-financial gains resulting from the adoption of circular production practices. The methodology used to achieve this goal was a systematic review of the literature and bibliometric analysis. Thus, it was possible to conclude that the barriers faced by companies adopting the circular economy in relation to financial performance are defined by (i) the size of the business and the initial investment cost, (ii) difficulties for micro and small companies, (iii) to a more complex structuring of the business, and (iv) greater exposure to risk, as the circular economy is a new concept and is and not as representative as a linear standard system. The results show that few studies investigate corporate gains from circular production, which is, therefore, an important topic for future research and the major contribution of this paper.
Highlights
The current economic system is mainly based on a linear logic for obtaining capital: extraction of natural resources, production, consumption, and, disposal [1,2]
The results show that, there are several ways in which circular economy can be used in an organization, it is very important for management, organizational culture, planning and strategic objectives to be aligned with circular principles
The circular economy can be used in different ways and at different levels, in industrial processes, organizations, governments, and legislation
Summary
The current economic system is mainly based on a linear logic for obtaining capital: extraction of natural resources, production, consumption, and, disposal [1,2]. As long as we live in an economy based on linear production and consumption processes, the destruction of ecosystems, the loss of biodiversity, and consequences such as climate change and water and air pollution will continue causing irreversible changes that render it difficult to sustain life on Earth [3]. An alternative to this model is a system that guarantees a continuous material flow, i.e., a closed loop. The concept of a circular economy was introduced by Pearce and Turner [8], and the authors claim there is a strong interdependence between the economy and the environment when looking at their relationship through the first law of thermodynamics, which states that energy and natural
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