Research avenues for uncovering the rebound effects of the circular economy: A systematic literature review

Abstract

Circular Economy (CE) has gained great traction over the past few years and is increasingly seen as a way to achieve sustainable development. However, the implementation of CE initiatives often leads to rebound effects (RE), which limits the sustainability potential of CE. Despite the vast literature on rebound effects across several disciplines, such as ecological economics and industrial ecology, there is still a limited understanding regarding the occurrence of rebound effects within a CE context. This paper provides a systematic literature review (SLR) of RE with a particular focus on: (i) definitions; (ii) triggers and drivers; (iii) types and mechanisms; and (iv) measurement approaches. On the basis of the results of the SLR, a conceptual framework of RE is proposed. Furthermore, several gaps for RE research within CE have been identified and lead to the proposition of a number of potential research avenues: (1) expand the research scope and level of analysis to a systemic view; (2) enhance the understanding of RE triggered not only by efficiency, but also effectiveness and sufficiency; (3) expand the time horizon considered for the analysis, so to account for possible delays in the system; (4) deepen the understanding of the relationships between RE and all sustainability dimensions; (5) strengthen the research on the meso level; (6) account for the importance of system structure and system behaviour in the occurrence of RE; (7) model the causal dynamic relationships between important variables to anticipate the potential occurrence of RE; (8) develop robust approaches to estimate the potential RE triggered by CE initiatives. By consolidating the state-of-the-art within RE research and identifying the research directions for exploring RE within CE, this paper establishes a solid foundation for future research in the field.