67 research outputs found
Circular economy and default risk
No full textBy decoupling economic growth from the exploitation of virgin raw materials and environmental
degradation, as well as by developing practices more resilient to the economic cycle,
Circular Economy (CE) o®ers e®ective hedging of linear risks and shields from the risk of
stranded values. We tested this hypothesis focusing on default risk of a sample of 222 European
circular issuers focused on manufacturing, construction, energy, metal and oil and gas industries.
The time period considered is 2013–2018. The main explanatory variable is the Circularity
Score, a brand-new indicator based on material variables pertinent to CE. Default risk is
measured on PD values, corresponding to external rating classes, provided by Bloomberg. We
found that issuers with a higher level of circularity con ̄rm de-risking hypothesis at both short
and long terms. Moreover, the contribution o®ered by circularity on de-risking is more relevant
in the long-term analysis, ranking as third in relation to fourth in the short-term model
The impact of circular economy on public equity in Europe
No full textCircular Economy offers effective hedging of linear risks, shields financial actors from the risk of stranded values and promises to ensure persistent performance of businesses and portfolios without compromising financial returns. We tested these hypotheses of de-risking and superior risk-return combinations building a sample of 222 European circular shares focused on manufacturing, construction, utility and materials industries for the period 2013-2018. We found that securities that score a higher level of circularity confirm both hypothesis, nonetheless as considered standalone or included in the fully diversified portfolio. This research provides the first evidence of the positive relation amongst the degree of circularity on one side with equity de-risking and superior risk-adjusted performance on the other one. Moreover, we applied a brand new materiality based measure that allows quantifying the degree of circularity for a public stock
ROLE OF INTER-FIRM NETWORKS AND RELATIONSHIPS IN THE ADOPTION AND DIFFUSION OF ECO-INNOVATIONS TO ACCELERATE THE CIRCULAR ECONOMY TRANSITION
No full textSustaining the world’s growing population requires higher levels of consumption of natural resources, resulting in increasing negative impacts on society and the environment. In order to remain within the limits of the planet’s capacity to provide resources while ensuring a strong social foundation for society, it is essential to shift towards a circular economy, a holistic and systemic approach to utilize resources more efficiently and sustainably. Transitioning to a circular economy requires the development and widespread adoption of disruptive eco-innovations by firms and their supply chains, which redesign societal behaviors, introduce new business models, and create technological and institutional changes that can transform existing production systems. However, the most pressing barriers that prevent the shift towards a more circular economy and hinder transformative eco-innovations are social and cultural, and there is a need to better understand these dynamics. This thesis proposes an economic sociology perspective to examine these dynamics by highlighting the importance of embedded social and cultural factors within networks and relationships to explain economic behaviors. The overall aim is to investigate the role of embedded social and cultural dynamics within inter-firm networks and relationships in the adoption and diffusion of disruptive eco-innovations that accelerate the circular economy transition. The dissertation is composed of three chapters: first, a review of the literature to explore the various types of inter-firm networks and relationships and how they affect eco-innovation adoption and diffusion; second, a historical case study of Jaguar Land Rover’s REALCAR closed-loop recycling initiative to understand how embedded relationships within inter-firm networks influenced circular economy eco-innovation adoption; and third, an agent-based model to analyze the mechanisms and targeting strategies that could enable faster adoption and diffusion of eco-innovations through inter-firm networks. The outcomes of this research highlight the critical role that embedded networks and relationships between firms play in the circular economy transition, and how they can be leveraged by decision-makers to overcome the key social and cultural barriers and more quickly shift to a circular economy
A Systemic Circular Model and Analysis applied to Innovative Sustainable Recycling of Thermoplastics
No full textIntroduction: The recycling sector and its related market are one of most turbulent and nowadays the most strategic areas for the recovery of thermoplastics after its first use, so important for the environment and resources conservation. One of the main problems faced globally by the industry is the higher cost of recycled plastic materials compared to virgin plastic from fossil fuel combined with a very low recycling rate. Part of this question is due to the shortage of proper infrastructure for collecting and sorting the used plastics, not to mention technical and environmental issues regarding mechanical and chemical recycling of thermoplastics. The situation is compounded by a widespread linear, cost and profit-oriented mentality without any social and environmental consideration that guides primarily the recyclers and brand owners and a huge general paradoxical mismatching between where and how plastic is discarded, mainly in the western world, and where and how plastic is recycled, mainly in Asia (1).
Methods: In order to close these gaps and address these many systemic issues in the plastic value chain, the adoption of a holistic, complex system approach that better understands the different values, norms and behaviours among the key stakeholders is paramount. This allows, in connection also to a set of basic dynamic holistic indicators introduced, a systemic change in a more evident and emerging awareness of the interdependence of actions and decisions and their impacts. In taking a complex system perspective in modelling these issues, there is the realization of the nature of socio- economic interconnections as a non- linear synergetic process in a dynamic non-equilibrium of chaos within order, order within chaos similar to biological systems. And like them, they lead to unpredictable consequences that in turn feedback to influence individual actions in an endless cycle of adaptation and evolution (2).
Results & Discussions: New innovations for the recycling industry are required. Such innovations should identify ways to design and develop processes and products that go beyond traditional recycling technologies and systems to find new cost-competitive uses for plastic waste streams that are currently too expensive to process. The example, analysis and evaluation are presented of a novel company which has discovered a way to regenerate unsorted residual municipal general waste into new highly recyclable thermoplastics material for different industrial uses distinct from traditional types of plastics. Such a solution not only addresses the issues of collection and sorting, but also provides more localized solutions for waste (3).
Conclusions: The work outlines a systemic circular model for the plastic value chain to support innovations and a greater awareness of the context and interdependence of actions and decisions among the different key actors. In this way gaps are identified and delivered within the current system and circular solutions that disrupt the status quo are enabled.
Key words: Circular economy, Systemic thinking and complexity, Innovation, Plastic and recycling industry, Cultural change
Acknowledgement: The Authors want to express their deepest gratitude to Tato (Jack) Bigio, Co-Founder and CEO of UBQ Materials and his staff, in particular to Dr Rachel Malka Barr, VP Sustainability. Also, a special thanks to Dr Steve Wong, President and CEO of Fukutomi Recycling ltd. Their support and availability were fundamental for the results of this work.
References
1. Wong S. Phone interview. Conducted November 4, 2020.
2. Casoli G., Ramkumar S. Plastic Pollution in the Oceans: A Systemic Analysis—Status Quo and Possible Sustainable Solutions. In: Streit-Bianchi M, Cimadevila M, Trettnak W, editors. Mare Plasticum - The Plastic Sea, Cham: Springer International Publishing; 2020, p. 221–43.
3. Bigio, T. Phone interview. Conducted November 20, 2020 and April 12, 2021
Diffusion of eco-innovation through inter-firm network targeting: An agent-based model
No full textTo address increasingly urgent global environmental challenges, there is a need for rapid and widespread adoption of eco-innovations. Previous research has shown that targeting key initial adopters using network-based strategies is an effective way to increase the adoption and diffusion of innovations; however, these models have not specifically been applied to the diffusion of eco-innovations through inter-firm networks. Therefore, this paper develops an agent-based model that tests various network-based targeting strategies on generated inter- firm networks with different parameters to understand mechanisms that could boost and accelerate the adop-tion and diffusion of eco-innovations. The results show that targeting firms with high degree or high influence could more quickly diffuse incremental eco-innovations, while targeting neighbors of adopters is a better strategy for more radical eco-innovations with greater barriers to adoption. This has implications for policymakers, companies, and startups who wish to accelerate eco-innovation adoption and diffusion to create positive societal impacts
Experimental evaluation of long term evolution-based NC OFDM secondary-to-secondary interference
No full textScarcity of spectrum resources, inefficient spectrum usage and the inflexibility of the current spectrum assignment are few of the major roadblocks in the development of new wireless communication standards. Secondary spectrum sharing has become a viable solution to alleviate this problem. Secondary users are unlicensed devices that use opportunistic spectrum access to identify vacant frequency bins and thereby utilize the spectrum. For advanced wireless communication standards like the Long Term Evolution (LTE) which primarily calls for higher data rates, evaluation of design parameters for ensuring efficient coexistence of heterogeneous secondary users and guaranteeing acceptable minimum level of performance becomes essential. Additionally, the understanding of the interference between secondary users occupying adjacent frequency bands for their transmission is imperative. This thesis focuses on the coexistence of secondary users in the same band assuming that the primary spectrum is found available. By Implementing two Non Contiguous Orthogonal Frequency Division Multiplexing ( NC-OFDM) based secondary transmitters on a real time platform, the design parameters that need to be considered to ensure efficient coexistence have been identified and investigated. The performance degradations observed at a particular secondary link due to presence of another interfering secondary link occupying adjacent frequency bands for its transmission have also been studied. This thesis also focuses on implementation of algorithms to modify the existing NC-OFDM transmission at the secondary transmitter end to reduce its Interference effects on the other secondary links operating within the same band. The focus is on an LTE-based Secondary Non Contiguous Orthogonal Frequency Division Multiplexing Transceiver on a Real Time Platform developed by National Instruments. The various blocks needed to design a real time LTE based communications links are discussed. An experimental LTE-to-LTE interference analysis based on the Real Time Platform and the designed system is presented.M.S.Includes bibliographical referencesby Ajay Ramkumar Iye
Stock-Driven, Trade-Linked, Multi-Regional Model of the Global Aluminium Cycle
No full textFuture consumption and use of aluminium is expected to continue to increase significantly. However, due to the heavily inter-connected and complex global aluminium system, there is a need to better understand how increases in aluminium consumption and demand will impact the future flows within the global aluminium cycle. This study aims to analyse the historical flows and in-use stock of aluminium within each region to create a stock-driven, trade-linked, multi-regional model that can forecast global aluminium flows to 2050 through various scenarios. The end goal of this research effort is to provide the aluminium industry with a robust tool that provides insights into long-term business strategies given various possibilities for how the global aluminium cycle could evolve in the future
Stock-Driven, Trade-Linked, Multi-Regional Model of the Global Aluminium Cycle
No full textFuture consumption and use of aluminium is expected to continue to increase significantly. However, due to the heavily inter-connected and complex global aluminium system, there is a need to better understand how increases in aluminium consumption and demand will impact the future flows within the global aluminium cycle. This study aims to analyse the historical flows and in-use stock of aluminium within each region to create a stock-driven, trade-linked, multi-regional model that can forecast global aluminium flows to 2050 through various scenarios. The end goal of this research effort is to provide the aluminium industry with a robust tool that provides insights into long-term business strategies given various possibilities for how the global aluminium cycle could evolve in the future
Influence of Inter-Firm Network Relationships on Circular Economy Eco-Innovation Adoption
No full textResearch has shown that inter-firm networks and relationships play a key role in innovation adoption; however, these concepts have not specifically been applied to study their role in the adoption of circular economy eco-innovations. This paper considers whether the embedded relationships within inter-firm networks also influence circular economy eco-innovation adoption. Using a historical case study of the REALCAR closed-loop recycling initiative, by Jaguar Land Rover, from 2013 to 2017, the paper conducted qualitative interviews to reconstruct the structure and nature of the relationships between Jaguar Land Rover and its suppliers. This was complemented with a network regression analysis to determine the influence of these relationships on the adoption and implementation decisions of the closed-loop recycling process by the suppliers of Jaguar Land Rover. The results show that Jaguar Land Rover’s relationship as a key customer, facilitation of knowledge sharing among peer suppliers, and resistance from suppliers impacted by changing supply chain relationships played a role in the adoption decisions and adoption timeframe of the REALCAR closed-loop recycling innovation. This has implications for companies and supply chains to consider leveraging the inter-firm relationships embedded in their supply chain networks to accelerate the adoption of circular economy eco-innovations
Plastic Pollution in the Oceans: A Systemic Analysis—Status Quo and Possible Sustainable Solutions
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