Circular economy and frugal innovation: a conceptual nexus

Financing mechanism for solid waste management in Anambra, Nigeria: analyses of emerging challenges and implication for circular economy

Waste management is a critical public service provided by municipalities around the world. It is often problematic, inefficient, and abysmally performed in developing countries. Among the problems associated with waste management in these global locations is the issue of finance. Finance is required for both capital investment and operational costs. Methods of waste management financing differ from place to place due to cultural, political, and socio-economic peculiarities. Understanding these conditionalities is necessary to be able to proffer sustainable solutions. Despite these facts, there is limited comprehensive and relevant academic literature on waste management financing mechanisms in developing countries both in the past and recent times. This work addresses a significant gap in the literature by studying the mechanism for waste management financing in developing countries using Anambra State, Nigeria, as a case study. The current study further investigated the associated challenges and opportunities and made critical discussions on the implications on the circular economy. User fees and subsidies from the government are the major financing sources. The absence of cost-revenue model analysis, economic and institutional volatility, the unwillingness of the service users to pay fees, and lack of transparency are major challenges to the financial sustainability of waste management in the studied context. The creation of incentives for behavioral changes, adoption of neo-liberal policies, and formal integration of informal waste pickers are factors that can minimize the cost of waste management services while promoting a circular economy.

Drivers for circular economy development: making businesses more environmentally friendly

Stakeholders have been pressuring companies to develop more environmentally friendly strategic and operational solutions. In this sense, companies are seeking alternatives that reduce the negative impacts of organizational activities, Circular Economy (CE) is one of the solutions with the greatest potential for success. Thus, the goal of this paper is to provide drivers for organizations' transition from a linear to a CE. For this reason, content analysis was used as the scientific method, for being appropriate for the interpretation of qualitative data and the identification, clustering, and systematization of themes in a given field of knowledge. In the case of this work, a set of 30 articles with information related to the implementation and development of CE were analyzed, allowing the identification of 19 key elements of CE. These key elements were then grouped and systematized into four drivers: decision-making; capacity and training; sustainable practices; and green supply chain. Scientifically, this work contributes to the improvement and increase of the block of knowledge about the CE, because the drivers can be used to advance the state of the art and as a starting point for the development of new research. In an applied way, the drivers proposed in this article provide a range of actions for managers to make their companies greener and improve their organizational performance, thus contributing environmentally and socially to the planet.

Modeling circular economy innovation and performance indicators in European Union countries

The concept of circular economy (CE) is increasingly prominent in European Union (EU) countries, considering the demand for incorporating renewable resources into end products. Similar to sustainable development dimensions, CE indicators can be classified within economic, social, and environmental protection categories, depending on their measuring scope, and within micro-, meso-, and macro-level, depending on the level of observation. The aim of the research is to determine the impact of CE innovation on CE performance in EU countries by modeling the Eurostat indicators via SmartPLS software. Relying on the relevant literature review, the paper first presents the concept of CE and the composite indicators used for evaluating its specific performances, as well as previous global and European experiences. Further, the study focuses on the modeling options for CE performance composite indicators demonstrating the relationship between the accomplishments of CE and the use of innovative measures at the level of products, services, or processes. Based on the data from EU27 countries for the period 2018-2021, the paper explores the relationship between variable and model composite indicators using SmartPLS software. SmartPLS output results support four assumption paths between CE indicator groups which are also confirmed with convergent and discriminant validity and heterotrait-monotrait ratio (HTMT) values. CE path modeling structure confirms the positive connection between CE innovations and CE performance emphasizing the need for providing a supportive environment and funds for innovations.