THE CIRCULAR ECONOMY

The re-use of household plastics collected at the kerbside is just one example of the contemporary circular economy. Importantly, there is a need to move from a push-through economy to a pull-though system, where the ongoing and sustained demand for recycled products ensures resources are not wasted and scarce landfill placed under pressure (see Figure below).  

There is a critical role for economic development practitioners and land use planners in this emerging economy:

·         First, localities that develop competence in one dimension of the circular economy can emerge as a renewable industries ‘cluster’ with the outputs from one business (eg the sorting of plastic waste), serving as the inputs to the next. Such clusters could also work with universities and other research providers to develop new technologies and business models to further develop the pull-through economy;

·         Second, local governments can serve as an important market for circular economy products, as can those working in state or Federal agencies;

·         Third, practitioners can promote the circular economy and its principles to the businesses within their region, offering it up as a solution to the costs of waste disposal (which are commonly significant), as a possible additional income stream and as a way of growing the economy as a whole.

The circular economy is the label given to economic processes that make use of the outputs and waste of mainstream production processes, and along the way reduce material going to landfill, make better use of natural resources and reduce pressure on natural systems. It’s a system that keeps resources circulating through the economy, which in turn minimises the cost of handling waste and sourcing materials for production. Importantly, the circular economy makes business sense, creating new opportunities for firms able to see potential new markets while creating jobs for local economies. 

The fundamentals of the circular economy are not new, with many items historically produced as a by-product of other production processes. To give one example, the common household ingredient baking powder is also known as tartaric acid or cream of tartar. It naturally occurs in many fruits including grapes and is a by-product of wine making. This means many wine making regions also export cream of tartar, adding to jobs and boosting the vibrancy of the economy. 

In the current era many advanced economies are facing a ‘waste crisis’ as increased volumes of used goods, packaging and other material is sent to landfill. This adds to the cost to society and the economy, presents a risk to the natural environment and represents a waste of raw materials. A recent visit to the business Advanced Plastic Recycling (APR) highlighted the ways in which technology makes the re-purposing of waste both possible and economical. This firm takes plastic collected from the kerbside and mixes it with wood fibre to create a range of products that are chemically inert, UV stabilised, rigid and strong. These products can be used in major infrastructure projects (e.g. sound absorption walls along freeways), landscaping, street furniture, and even as railway sleepers.

Figure: The circular economy – moving from a push through to a pull through economy