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Financial returns of implementing a circular economy: A firm's perspective |
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| รหัสดีโอไอ | |
| Creator | Pard Teekasap |
| Title | Financial returns of implementing a circular economy: A firm's perspective |
| Publisher | Nakhon Pathom Rajabhat University |
| Publication Year | 2562 |
| Journal Title | Journal of Thai Interdisciplinary Research |
| Journal Vol. | 14 |
| Journal No. | 3 |
| Page no. | 35 |
| Keyword | Circular economy, financial returns, system dynamics, sustainable development goals |
| URL Website | http://rdi.npru.ac.th |
| Website title | วารสารวิจัยสหวิทยาการไทย |
| ISSN | 2465-3837 |
| Abstract | Economic growth is considered to be desirable for all countries. However, the limited resources on our planet presenta problem with the infinite resource assumption of infinite growth economic models. The circular economy concept seeksto reduces these problems by unbundling resource limitation from economic growth through the reduce, reuse, and recycleapproach. This concept has been strongly adopted globally using a top-down approach. An example of this is when theChinese government enacted a circular economy law. In other countries, however, that are driven by the private sector, theimplementation has stagnated due to a perception that firms will have lower return from implementing a circular economyproduction system. Little research exists to confirm if their perceptions are correct or not. This paper, therefore, aims to fill thisgap by studying the financial benefit/cost of implementing a circular economy from a firm's perspective.A system dynamics method has been used in this study because no public firm was found in Thailand that claimed that theyhave fully implemented a circular economy concept. The system dynamics approach enables this data limitation to be overcomeas this methodology allows us to examine the impact of a circular economy based on a theoretical analysis. In addition, thismethod shows results using graphs which are easy to understand and analyze.The results of the study show that firms that implement a circular economy concept will have better performance than firmsthat do not. Firms implementing a circular economy approach will have a higher profit due to an increase in revenue and alsolower costs in the long term. Higher revenues come from selling products at a higher price. Even though the price increaseshave a negative e ect on the demand, the e ect is minimal and it takes a long period for this e ect to happen. |
