Supporting Circular Economy through Use-Based Business Models: The Washing Machines Case

Abstract

The circular economy paradigm is being widely studied as a possible path to a sustainable development, decoupling economic growth from material consumption and environmental impacts. The introduction of new business models, based on use rather than ownership, has been identified as one of the possible enabling actions for the implementation of circular economy strategies. Thus, product-service systems (PSS) can represent a viable way for companies and customers to switch from a linear to a circular scheme, keeping together the advantages of a customer-oriented offer to those of dematerialization. In this work, an example of innovative, circular business model for the large appliances sector is proposed, based on a PSS and a closed-loop supply chain. A context study, supported by a deep literature analysis, is performed to identify the main changes involved in the transition from a traditional to a circular supply chain in the sector, as well as the main impacts on the actors involved, through causal loop diagrams. The study is a first step for the realization of a system dynamics model, for a further research on impact assessment.