Abstract
This article investigates the phenomenon of rebound effects in relation to a transition to a Circular Economy (CE) through qualitative inquiry. The aim is to gain insights in manifestations of rebound effects by studying the Dutch textile industry as it transitions to a circular system, and to develop appropriate mitigation strategies that can be applied to ensure an effective transition. The rebound effect, known originally from the energy efficiency literature, occurs when improvements in efficiency or other technological innovations fail to deliver on their environmental promise due to (behavioral) economic mechanisms. The presence of rebound in CE contexts can therefore lead to the structural overstatement of environmental benefits of certain innovations, which can influence reaching emission targets and the preference order of recycling. In this research, the CE rebound effect is investigated in the Dutch textile industry, which is identified as being vulnerable to rebound, yet with a positive potential to avoid it. The main findings include the very low awareness of this effect amongst key stakeholders, and the identification of specific and general instances of rebound effects in the investigated industry. In addition, the relation of these effects to Circular Business Models and CE strategies are investigated, and placed in a larger context in order to gain a more comprehensive understanding about the place and role of this effect in the transition. This concerns the necessity for a new approach to how design has been practiced traditionally, and the need to place transitional developments in a systems perspective. Propositions that serve as theory-building blocks are put forward and include suggestions for further research and recommendations about dealing with rebound effects and shaping an eco-effective transition.
Highlights
Our planet’s ecology and its economy are on a collision course
While the Circular Economy (CE) sounds intuitively beneficial for the environment, care should be taken when assessing the true environmental benefits of circular business: companies that operate within the CE paradigm and are based on Circular Business Models (CBMs)
The accumulated knowledge from the various angles represented by the interviewees was analyzed according to the Gioia method (2012) to produce comprehensive recommendations and insights on the role of Circular Economy Rebound (CER) in the future of the textile industry as it transitions towards circularity
Summary
Our planet’s ecology and its economy are on a collision course. This collision path manifests largely due to a contradiction in the assumptions of unlimited material- and economic growth fueling the linear economic paradigm. Our closed planetary ecosystem imposes limited amounts of space and a finite amount of resources upon its inhabitants. Practically all the currently and historically applied methods of economics have been defiantly neglecting these realities, as resources are extracted, used and disposed of reluctantly. While the CE sounds intuitively beneficial for the environment, care should be taken when assessing the true environmental benefits of circular business: companies that operate within the CE paradigm and are based on Circular Business Models (CBMs)
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