Circular Economy: Foundation and Theoretical Framework

Abstract

The Circular Economy (CE) is a shift away from the conventional linear economic model, which is based on resource efficiency and waste minimization with regenerative systems. This chapter goes beyond descriptive overviews by synthesizing historical evolution, theoretical foundations, and practical applications of CE into a unified conceptual lens, highlighting how CE serves as both a sustainability paradigm and a systems-level economic framework. It charts the history of CE from early conceptual contributions, such as the 1972 Limits to Growth report, through formalization in the 1980s with the rise of industrial ecology and the inception of eco-efficiency in 2000. The chapter provides a brief review of key milestones in CE, from the Performance Economy to Cradle-to-Cradle design, emphasizing the extension of product lifetimes and recycling, culminating in overall closed-loop material flows. It also explores the role of the Ellen MacArthur Foundation, espousing the CE and linking it to worldwide sustainability objectives. Unlike prior reviews, the.