Embedding the Circular Economy in Investment Decision-making for Capital Assets – A Business Case Framework

Industry shows an increasing interest in the circular economy. However, circularity for physical capital assets is still ill-defined and existing models are complex and information dependent hindering implementation. This paper addresses these gaps by operationalizing circular economy principles and...

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Bibliographic Details
Published in:Procedia CIRP 2016, Vol.48, p.425-430
Main Authors: Korse, M., Ruitenburg, R.J., Toxopeus, M.E., Braaksma, A.J.J.
Format: Article
Language:English
Subjects:
asset management
circular economy
investment decision making
sustainability
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Summary:Industry shows an increasing interest in the circular economy. However, circularity for physical capital assets is still ill-defined and existing models are complex and information dependent hindering implementation. This paper addresses these gaps by operationalizing circular economy principles and developing a suitable business case framework embedding circularity. Following the Design Science Methodology, a framework was developed based on circularity and investment decision-making literature and requirements from a Dutch electricity grid operator. An initial evaluation showed that the framework supports selecting the preferred circular investment scenario and can be generalized to other industries.
ISSN:2212-8271
2212-8271
DOI:10.1016/j.procir.2016.04.087