Naber, Martine (2021) The role of proximity and networks for policy in the transformation to a circular economy. Master thesis.
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Abstract
A circular economy focuses on keeping materials within the outer manufacturing limits in order to use them as effectively as possible after the point that is at this moment regarded as the end of its life. In order to transform the Dutch economy to a more circular economy, a shift from linear to circular business models is needed. However, some problems have been identified; investors are not aware of the business opportunities, there is a lack of financing of CE initiatives, CE initiatives are often not competitive enough, there is a higher risk and the outcomes are uncertain because customer habits need to change. Policy can play a role in enabling or enhancing the change towards a more circular economy by adjusting current policy and introducing new policy that are needed to ensure cost effectiveness and financial reliability of the circular economy that is needed to achieve the volume growth of circular initiatives. Currently, the EU adheres to the circular economy action plan that aims to reduce the barriers for a transformation to a circular economy. To achieve this goal, there are several directives and regulations that serve to define essential concepts, to ensure health, to make use of waste, to reduce trade barriers by regulating internal markets and to generate information. At the Dutch national level, there are specific regulations that focus on the environment and waste. Some of the goals are to act in favor of the environment, to regulate national waste management, to reuse and recycle more, to reduce emissions and so on. From a theoretical point of view, both networks and the different forms of proximity seem to be important for the development of a circular economy. However, the presence of networks and these proximities within European policy is not always clear: only cognitive and organizational proximity make an appearance in these policy frameworks. In Dutch policy, the role of networks and proximity is even less dominant. This might be a result of the relatively small scale of the Netherlands, and the therefore relatively high baseline of proximity between both producers and consumers. According to the interviewees, both networks and the different forms of proximity are important in order to be able to ensure progress towards a circular economy. However, the lack of these concepts in European and Dutch policy was never mentioned to be a problem. According to the interviewees, the problem is more found in the fact that a lot of Dutch policies still too focused on bigger firms, and still too oriented on the linear economy. What is the hardest about the transformation to a more circular economy is changing the existing, big, linear firms. Transforming small firms is both easier and more valuable as it can make a difference for the future. Also, Dutch society seems to not be fully aware of the meaning of circularity. They need to be better informed in order to be able to make the best decision on what product to choose, whether circular or not. Society is deemed to be just as important as policy, because even if policy is very well installed, people need to be willing to buy the product we want them to buy. This can be realized by making sure that ‘best’ product is also the most attractive in terms of price and function, next to the fact that it is circular. The existing policy is not as enabling as it could be, because it is mostly still very focused on the linear economy. A way to enhance this is by installing an institution where individuals, firms and organizations can indicate unsuitable policy so that will be changed in an accelerated manner. Existing policy must be focused more on the circular economy, more on smaller firms and information about the concept must be spread in unofficial language in order to make the concept more tangible for all parties in society. From the interviews the conclusion can be drawn that, indeed, policy can play a big role in the transformation towards a more circular economy. Networks and proximity are important, but the lack of these concepts in policy does not have to be a problem. In order to enhance policy, what is most important is making sure that the policy that exists has the right focus and that it includes everyone. It seems like these firms are more looking for policy to aid the transformation to go faster, rather than the kind of policies described in chapter 4. Of course, these kinds of policies do play an unmissable role in changing the regulatory environment, but for the interviewed firms these policies are more background material. Active stimulation policy is what they seem to miss, that enables firms, organizations and customers to reach the goals that are already laid out in the existing waste and circular economy policy. There is a role for proximities and networks in the transformation to a more circular economy, just as there is a role for policy in this transformation. However, the importance of proximities in networks in the set-up of CE policy frameworks turns out to be limited. The main problem appears to be the fact that the policy that exists is policy that makes it harder to remain linear, but not easier to be circular, and that might very well be the policy that is needed. Facilitating circularity for firms that are predominantly linear will be crucial in transforming the current economy. Therefore, for future research, it might be interesting to approach firms that are not (yet) adopting any circular ways of doing business. This might give an insight in what to improve for firms that are really starting from square one, as opposed to firms that were interviewed in this research that are already in the circular economy world and already know about the concept.
| Item Type: | Thesis (Master) |
|---|---|
| Degree programme: | Economic Geography: Regional Competitiveness and Trade (track) |
| Supervisor: | Brouwer, A.E. |
| Date Deposited: | 22 Jan 2021 11:43 |
| Last Modified: | 22 Jan 2021 11:43 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/3406 |
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