Circular economy development in China-current situation, evaluation and policy implications

Abstract

Circular economy (CE), distinguishing from the traditional linear developmental model, is a new mode which stresses recycling resources to save resources, protect environment and achieve economic development. Thus, many countries have made the development of circular economy as a strategy, since it has played an important role in adjusting the industrial structure, changing the way of economic growth, constructing ecological civilization and finally promoting sustainable development. However, to evaluate the level of CE development is rarely seen. China has experienced “11th Five Year” and “12th Five Year” to promote the development of circular economy through the whole country, and have made remarkable achievements. We assessed the circular economy development levels of 31 Chinese provincial regions in 2017 using data envelopment analysis (DEA) in this study. This analysis applied indicators which can well reflect the characteristics of circular economy. Results show that large differences still exist in the development level of circular economy in different regions. 23% of the provinces (e.g. Beijing, Shanghai, Tianjin) are relatively efficient. 70% of the regions being inefficient in scale efficiency show decreasing returns to scale. The overall efficiency of Inner Mongolia ranks last. In addition, this study finds the inhibitors of circular economy development according to the DEA results and proposed suggestions for establishing an effective mechanism to promote CE development. Overall, our research methods and findings may help China and other regions abroad measure the level of circular economy development and promote the development of circular economy