Sustainable Scaling in Forest-Based Circular Models

Eleonora Santos ()
Additional contact information
Eleonora Santos: Centre of Applied Research in Management and Economics (CARME), School of Technology and Management, Polytechnic University of Leiria, Edifício C, Campus 2 do IPLeiria, Morro do Lena, Alto do Vieiro, 2411-901 Leiria, Portugal

Sustainability, 2025, vol. 17, issue 13, 1-34

Abstract: The transition to a circular economy is essential for enhancing sustainability and resource efficiency, particularly in forestry-dependent regions. This study examines circular economy business models (CEBMs) in Kouvola, Finland, focusing on the utilization of forestry by-products. It compares two case studies: Keltakangas Waste Station, which processes wood waste into biogas, and Koumet, a forestry company producing biochar. Using a comparative case study approach, this research integrates financial analysis (2020–2023), interviews with managers, and policy reviews to assess economic performance, scalability, and environmental impact. Additionally, this study introduces a generalizable framework—Scalability Path Dependency (SPD)—which theorizes how early strategic decisions shape the long-term growth trajectories of circular business models. The findings reveal that Keltakangas follows a capital-intensive model with declining profit margins, while Koumet operates a resource-efficient model with stable but low profitability. Their scaling strategies diverge: Keltakangas relies on external financing for expansion, whereas Koumet emphasizes cost efficiency and market diversification. Despite ongoing challenges related to infrastructure, regulation, and financial viability, both models contribute meaningfully to circularity. This study offers actionable insights for policymakers and businesses aiming to support sustainable forestry practices.

Keywords: circular economy business models; sustainability; scalability; forestry by-products (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/17/13/5967/pdf (application/pdf)
https://www.mdpi.com/2071-1050/17/13/5967/ (text/html)

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:gam:jsusta:v:17:y:2025:i:13:p:5967-:d:1690161

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().