1. Linear vs Circular economy
Linear economy focuses on profitability while circular economy targets on sustainability.
What goes around, comes around!
The concept of circular economy pretty much revolves around this old saying where it challenges the traditional take-make-dispose model of consumption.
The classic concept of economic growth is linear based on a "take, make, discard" model. In other words, raw materials are taken from the natural environment, used for manufacturing, consumed by consumers, and then discarded. Due to the fact that materials are only utilized once before being discarded, linear models have significant levels of resource consumption and waste.
In contrast, the circular economy model encourages continual use of materials and reduces the amount of waste. In a circular economy a closed-loop system is built where resources are used for as long as possible, in contrast to the traditional linear economic model, which follows a "take, make, use, dispose" pattern [1]. It ensures keeping materials and products in use through procedures like recycling, repair, and reuse. This closed-loop system aids in lowering the need for fresh raw materials and the resulting negative effects on the environment.
Example I:
Linear Economy: A consumer discards the old phone after buying a new one. The outdated smartphone is disposed of at a landfill, increasing waste and pollution.
Circular economy: The consumer sells the old phone to someone else or returns to the manufacturer at the end of its life. The manufacturer refurbishes the smartphone and sells it to a new user or uses the component for production of another product. This closed loop system helps in reducing the use of virgin materials and therefore related environmental impacts.
Example II:
Linear Economy : A business takes raw materials out of the environment, turns them into products, uses those items for one time, and then discards them. The model is characterized by high levels of resource consumption and waste.
Circular Economy : A corporation uses recyclable materials and creates as little waste as possible when designing products. The business promotes product repair and reusing, and it seeks to recover and recycle materials when their useful lives are finished. This closed-loop technology aids in lowering the need for fresh raw materials and the resulting negative effects on the environment.