Circular economy and firm performance: The influence of product life cycle analysis, upcycling, and redesign

Ángela Triguero, Lourdes Moreno‐Mondéjar and Francisco J. Sáez‐Martínez

Sustainable Development, 2023, vol. 31, issue 4, 2318-2331

Abstract: The transition toward a circular economy (CE) implies the introduction of innovative practices at the firm level. Nevertheless, an important question is under discussion: What are the consequences of these practices on firm performance? Using a survey approach, this article analyzes the effect of CE practices related to product design on economic and environmental performance: life cycle assessment (LCA), product upgradability, and design for disassembly, reuse, and recycling in a sample of 300 firms. Our findings show that, although most of the companies are carrying out some eco‐innovation (innovations aimed to reduce the environmental damage of their activity), only process eco‐innovations new to the market improve economic performance but not environmental performance. However, LCA is a tool for implementing CE principles, helping to improve both. Eco‐design is positively associated with economic performance. The results provide managers and policy makers new insights on the long road to achieving this transition.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://doi.org/10.1002/sd.2509

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:sustdv:v:31:y:2023:i:4:p:2318-2331

Access Statistics for this article

Sustainable Development is currently edited by Richard Welford

More articles in Sustainable Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().