Product service systems (PSS) are an example of a novel business model billed as having the potential to significantly reduce the environmental burdens of production and consumption processes. However, despite widespread interest in PSS, consensus regarding their actual environmental impacts, particularly with regard to salient issues such as global warming, is lacking. Hence this paper explores existing research to investigate the state of the art regarding the climatic impacts of PSS, alongside the set of factors that influence climatic impacts. The paper comprises a systematic review of peer-reviewed academic literature, quantifying the extent to which different types of PSS have the capacity to reduce greenhouse gas emissions across multiple product categories. Our study shows that significant reductions in climatic emissions are possible, but PSS are in many cases associated with more modest reductions and, in some cases, increased emissions. Further, we observe no clear differences in climatic impacts according to the type of PSS model that is deployed. Rather, differences in climatic impact are influenced by factors such as production and design alongside use-phase impacts and contextual factors such as transportation and the energy mix. The study argues that further research is needed to establish a more robust baseline upon which to draw conclusions regarding the sources of climatic impacts, and outlines fruitful ways for companies to tackle the complexities of climatic emissions that are beyond their control. 

Circular value propositions enable companies to build business models based on value preservation and circular resource flows. Circular value propositions also allow people to live more sustainably by facilitating increased utilization and resource efficiency. However, despite potential, transitions to circular business models remain low. One reason may be that circular value propositions are less attractive because they are often not developed with a user-centered approach and thus fail to meet people’s everyday needs. Through interviews with 13 companies and a literature study, this paper explores how companies consider user needs and involve users during development of circular value propositions. It also identifies conditions and actions that aid development of attractive circular offers. The findings are synthesized in a framework describing six enabling conditions and a definition of user-centered circular value propositions useful for circular economy practice and research. 

Product-as-a-service (PaaS) circular business models are at a disadvantage in terms of bank financing compared to many linear business models. Such business models generally face significant challenges both in the case of collateral-based and business case-based credit security assessments. The challenges are due to both difficulties in assessing and realising the residual value of the collateral and due to the timeframe of the risk assessment of the business case. Furthermore, the complex services that are the source of competitive advantage for PaaS firms often disqualify customer contracts as collateral. Two of the challenges (low inventory valuation and forced depreciation losses) are traced to accounting and credit regulations. Another five challenges are traced to long-term industry practice. The empirical evidence consists of quotes and summarised data from 38 interviews and 24 survey responses with banks and product firms exploring circular economy financing.

Widespread adoption of circular offerings, including those based on products with prolonged lifetimes, depend on offers which are attractive to users. To develop such offers, user needs must be considered in depth during the development process. Co-design is a promising approach to develop user-centered solutions but is yet underexplored when it comes to design of circular offerings. To facilitate co-design of circular offerings, games present one opportunity but have previously primarily been used to support understanding, creation, and learning in relation to circular economy. This paper explores how games can support co-design of user-centred circular offerings by presenting insights from an analysis of existing circularity-related games and summarizing insights from literature. Eight circularity-related games were played to identify benefits and drawbacks. Relevant literature was also reviewed to synthesise recommendations for a game aimed at supporting co-design of user-centred circular offerings. The results show none of the existing circularity-related games include a deep understanding of users’ needs and only a few go beyond mere learning and actually contribute to developing companies’ offerings. Identified recommendations suggest games will have higher potential to support co-design of user-centred circular offerings if they, for example, enable co-design with users and co-creation with multiple stakeholders in the business ecosystem, provide game elements that represent circular challenges and opportunities in a realistic and dynamic way, and create bridges from the game to the real world. Future game development should hence take such recommendations into account, while ensuring the developed games do not become too complicated to play.

Active learning is a promising teaching approach that can develop sustainability competences in learners. In this paper, we investigate the potential of active-learning pedagogies such as serious games and active-learning toolkits to deliver sustainability knowledge and skills in materials education. We organised a workshop for 20 participants from UK Universities where they played the serious game In the Loop around critical materials and circular economy and engaged in the Active-Learning ToolKit Sustainable Development (Granta Design/now Ansys UK Ltd.) to assess the sustainability of a proposed policy intervention around the use of electric cars. We used a self-assessment questionnaire and reflection sessions to deduce the level of sustainability skill developed by the participants as well as importance and performance analysis (IPA) to help the educators understand crucial components they should concentrate their teaching and learning efforts on in the future. Finally, we provide recommendations for educators on how to implement active learning in materials education in order to empower students with skills for sustainability.

Understanding consumer preferences in the circular economy can help producers develop profitable strategies, lowering the risk involved in transitioning to circular business models and circular product design. This study uses a choice experiment to identify customer segments for mobile phones and robot vacuum cleaners at different levels of circularity. The experiment observes how a product’s theoretical Circular Economy Score (ranging from 0 to 100) influences consumer preferences as compared to other product attributes like price, appearance, warranty, battery life, reseller type, or ease of repair. Drawing from 800 UK respondents, the results indicate the presence of three customer segments that are sensitive to a product’s Circular Economy Score, including two that appear willing to purchase recirculated items and one that expresses a preference against them. The results offer initial evidence that a market for recirculated consumer electronics exists and that circularity labeling is a marketable option. The results also present a strong rationale for further research that probes a greater variety of products and contexts. © 2021 by the authors

Designing products that can adapt to changes over time is crucial for managing product-related business risks in circular business models. However, there is limited circular economy research on how product adaptivity can contribute to more circular products and business models, especially in the early phases of business development and design. To address this research gap, this conceptual paper builds on the adaptable design concept and incorporates ideas from research on circular business models and circular design literature. It proposes a framework we collectively term “Future Adaptive Design” to help manage product-related business risks in circular business models and investigates related design strategies for product-based companies aiming to adopt circular business models.

While existing research has probed consumer responses to products of different recirculation pathways (recycling, reuse, refurbishment, etc), little work has examined consumer responses to an explicit “circular economy” product label or how willingness to pay is influenced by a continuum of circularity levels. This paper reports on the results of an online survey experiment that tests whether customers are willing to pay more for products with a theoretical multi-level Circular Economy score. Conjoint analysis was used on 800 respondents in the United Kingdom to test their willingness to pay for mobile phones and robot vacuum cleaners at different levels of circularity alongside other product attribute combinations. Results indicate that the average customer almost always prefers a more “circular” product when compared to products with otherwise identical attributes, and that customers are consistently willing to pay more for products with low or moderate levels of circular content. However, analysis suggests that willingness to pay more for products disappears, and in some cases declines, as the proportion of recirculated content increases. Results offer evidence that applying a numerical circular economy label at low levels of recirculated content could be a profitable strategy for producers of mobile phones and robot vacuum cleaners. Such a strategy is less certain for heavily refurbished products, fully reused products, or other product types. © 2020 The Authors

Abstract Understanding product circularity as ?three-dimensional? could anchor the Circular Economy to common principles while affording its followers flexibility about how to measure it in their specific sectors and disciplines and within their organization's means. Inspired by a heuristic developed for the urban planning profession to cope with the inherent conflicts of Sustainable Development, this article argues that measuring product-level circularity should consider ways to achieve (1) high material recirculation, (2) high utilization, and (3) high endurance in products and service offerings. Achieving all three dimensions ensures that material flowing through the economy is recovered from prior use phases, that it is used intensely, and that it retains its value in spite of exogenous changes. The article argues further that these three dimensions ought to be measured and reported separately rather than as a composite metric and that certain applications will have opportunities to improve circularity through certain dimensions better than others. The article also explains how researchers at RISE (Research Institutes of Sweden AB) are working with industry and government partners to measure the three dimensions and how diverse actors interested in the Circular Economy can use the three dimensions to take the first steps in their transition to circularity.