If there is waste, there is a system: Understanding Victoria's circular economy transition from a systems thinking perspective

Akvan Gajanayake and Usha Iyer-Raniga

Ecological Economics, 2025, vol. 227, issue C

Abstract: Governments around the world have started adopting circular economy policies with the aim of transitioning production and consumption systems to be more circular. This transition requires a holistic approach to overcome a multitude of interdependent challenges. To understand how the State of Victoria, Australia is transitioning to a circular economy, this paper uses a systems thinking approach to analyse the current ecosystem. Using data from multiple sources, Causal Loop Diagrams to depict sub-systems were developed and validated through focus group workshops. We found that there is a heavy reliance on the resource recovery and recycling sector, both at industry level and policy interventions. Common misconceptions that circular economy is an advanced recycling strategy was found to be a major barrier for the transition. Policies to overcome these misconceptions and developing accepted circularity indicators focusing on the design stage and upfront considerations of downstream end of life impacts would enable a holistic transition.

Keywords: Australia; Circular economy; System dynamics; Circular transitions; Causal loop diagrams (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:227:y:2025:i:c:s0921800924002921

DOI: 10.1016/j.ecolecon.2024.108395

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