Optimisation of the Circular Economy Based on the Resource Circulation Equation

Sanhong Liu, Ying Xie () and Wen Liang
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Sanhong Liu: Business School, Shaoxing University, Shaoxing 312000, China
Ying Xie: School of Management, Cranfield University, Cranfield MK43 0AL, UK
Wen Liang: School of Accounting, Hangzhou Dianzi University, Hangzhou 310018, China

Sustainability, 2024, vol. 16, issue 15, 1-23

Abstract: The lack of effective evaluation methods and implementation guidelines has led to frequent obstacles in the process of circular economy in enterprises. The efficiency equation for resource circulation can effectively evaluate the efficiency of an enterprise’s circular economy resource circulation from three perspectives: input, circulation, and output. Additionally, it delves into each link to identify weak points, offering guidance for optimising the enterprise’s circular economy. Utilising a value flow analysis within the context of a circular economy, this paper evaluates circular economy efficiency using a resource circulation efficiency equation. It conducts factor analysis across three dimensions: resource input, resource circulation, and waste output. This analysis aims to evaluate the corresponding resource productivity, added value output rate, and environmental efficiency. Factor decomposition techniques were then employed to identify the underlying factors contributing to poor circular economy outcomes. Furthermore, based on the relationships among three resource circulation indicators, this paper forecasts the potential advantages of integrating circular economy improvement measures and proposes practical optimisation approaches. The enhanced resource circulation efficiency resulting from the proposed optimisation approaches was validated through a case study with an aluminium company.

Keywords: resource circulation efficiency; optimisation of circular economy; resource productivity; value-added output rate; environmental efficiency (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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