Save money and do more with less through a Circular Economy
The manufacturing and consumption of products in our society is linear – a product is made from raw materials, it is sold, and subsequently finds its way into our landfills, generating an extraordinary amount of waste every year. If you’ve read my blog post about 4 places to invest today for outsized returns and environmental impact, then you know what a problem waste is. If you haven’t, I encourage you to read it as it outlines the environmental hazards of our growing landfills.
Although our product consumption operates linearly, the majority of our world exists as a living, breathing organism. Take this example: when a tulip grows, it produces seeds, which can be used to plant more tulips when it dies. The dead tulip can also be composted and reused - along with other materials and nutrients - as fertilizer for your lawn and garden. In this example, the flower's life follows a circular pattern, which ultimately eliminates waste, saves the consumer money (given you can reuse the tulip), and time in having to find another product to fertilize your lawn.
So, if recycling a product is a much more efficient and cost-effective way to operate, then why do we function linearly when it comes to consumption? Well, a growing body of research is arguing that we must move away from this old inefficient system and move closer to a model called a circular, or closed-loop, economy.
What is a circular economy?
A circular economy encourages the reuse and repurposing of materials to reimagine them into something new and ensuring that no waste is generated. This type of model can be applied to nearly every industry – from transportation to electronics and food products. This is key as waste is a problem in nearly every trade. For example, about 1/3 of all food produced is wasted and 50 million tons of electronic waste is generated each year.
Despite recent interest in circular economies, the concept is not a new one. It first appeared in a 1966 Kenneth Boulding novel. However, until recently the idea around this model was not an environmental one. Today, circular economies work for the sole purpose of reducing waste, and therefore alleviating some of the effects of climate change and global warming.
Benefits of circular economies
By widely enforcing a circular economic model and therefore eliminating waste, we could feed 870 million hungry people, cut CO2 emissions by 3.7 billion tons by 2050, and save our economy $4.5 trillion globally.
The environmental benefits of circular economies are clear, but there are wider advantages as well including job creation, economic competitiveness, and resource-saving. This was outlined by Walter Stahel and Genevieve Reday in the 1976 research report "The Potential for Substituting Manpower for Energy." This report also highlighted the business and employment opportunities that circular economies present.
Applications to your life
By now I’m sure you’re thinking: “this concept is all well and good but is there any way for me to participate in my every life?” The answer is “Yes!”
There are several ways you can interwork a circular economic model into your life today. Here are a few ideas:
1. Be diligent about your consumption habits
According to data commissioned by the White House in 2015, global raw material use rose during the 20th century at twice the rate of population growth, with developed countries being the greatest offenders. Another study found that rich countries are consuming on average 10x as many materials as the poorest.
To make progress against this trend, you can individually reduce your conception habits through small changes like purchasing a Brita filter and/or canteen to reduce your use of plastic. Other ideas include reusing plastic bags or baking with overly ripened fruit that you would ordinarily throw away.
2. Patronize stores following this model
Many stores are weaving the concept of circular economies into their business models, one example being Loop Store. Loop Store is a zero-waste way to shop with some of your favorite brands. They will send you products in a sturdy container and when you are done with the product, you simply put the empty container into a reusable bag and leave it outside of your doorstep. From there, Loop will do all the heavy lifting. They will come to your door to retrieve it and then will clean the container for you, reusing it for future products. Loop has already partnered with several major retailers, including Kroger and Walgreens.
Another idea is to frequent thrift or resale stores, like Poshmark, which are great options for limiting clothing waste. The fashion industry is one of the most polluting industries in the world and throws away 13 million tons of textile each year, 95% of which could be reused. Individually, consumers throw away 70lbs of clothing each year. And besides the environmental benefit of shopping at resale stores, it could also help you save a dollar or two!
3. Finally, advocate for policy change
Besides limiting your consumption habits and patronizing closed-loop businesses, it will also be important for governments to implement policies on a large scale that encourage the reuse of materials after a product's life. Other ideas for government intervention include taxing the use of materials that are actively harming our environment or imposing tax-friendly policies that encourage the use of more sustainable materials in product production.
Many countries are making progress against overconsumption through governmental policies, most notably in Kenya, where the government has banned single-use plastic bags. South Kora is another example. The country went from recycling 2% of its food waste to 95% after enforcing a ban on food waste and enacted a mandatory recycling program.
In summary.
Whether it be on the individual level by changing your consumption habits or on a larger scale through advocating for policy change there are many ways to get involved and help our economy move toward a closed-loop model.