Hence the concept of the circular economy focuses on

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Hence, the concept of the circular economy focuses on the redesign of manufacturing and service systems, for the benefit of the bio-sphere. Despite the circular economy construct offers a more sustainable way of doing business; in reality the circular economic approach could be perceived as novel, risky and complex. The transition toward a zero-waste model could prove to bea very difficult endeavor for businesses. In the face of an ongoing depletion of natural resources and the ever-growing demands from the global population, businesses are increasingly questioning their linear economic model of “take, make, waste”. Moreover, there are potential challenges for the implementation of closed loop systems. Macro-environmental factors, including political, economic, social and technological issues could also impact on corporate sustainable and responsible behaviors. For instance, this perspective is virtually silent on the social dimension. The circular economy 8
devotes its undivided attention to environmental issues. There is no explicit recognition of the social aspects that have been inherent in other conceptualizations of sustainable development. Moreover, the circular economy approach can also be critiqued for its over-simplistic goals as well as its unintended consequences. At times, positive sustainable initiatives could also bring negative outcomes. For the time being, many companies are still not knowledgeable enough about the circular economy. For instance, the alternative fuel that is produced from palm oil or soybeans has inevitably led to the loss of large forested areas around the world. Equally, green energy production often necessitates large stretches of arable land and puts huge pressures on the food supply chain, particularly in the poorest countries. Notwithstanding, the production of Ethanol is yet another example that requires more fossil fuel than it produces (Farigone, Hill, Tilman, Polasky and Hawthorne, 2008). In addition, environmentally-friendly technologies, including wind farms and solar panels do rely on certain minerals that are also difficult to recycle. These green structures will invariably require servicing and replacement. The prices of green technologies do not necessarily reflect the real costs of resources and raw materials. Current infrastructural systems, business models and technologies could also constrain the present economy. Although financial investments in new technologies could possibly improve operational yields and efficiencies, there could still be a low demand for them, particularly if these new systems require behavioral changes by their users. Policy makers and regulators may not necessarily support the transition towards the circular economy. Business and industry would probably resent any mandatory changes in their established behaviors. It is very likely that they would opt to remain in their status quo, where they are ‘locked-in’ to their traditional linear model.

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