Exploring the Economics of the Circular
Bioeconomy
1
Davide Viaggi
Abstract
The concept of circularity has become key for the bioeconomy. The objective of
this chapter is to discuss the concept of the optimal level of circularity, how it can
evolve over time and how it can be operationally used in decision-making about
the bioeconomy. In the background of the current literature on circular
bioeconomy, we first illustrate the concept of the optimal degree of circularity
using a simple market equilibrium framework. Then we elaborate on how this can
be connected to the reality of transition to a circular bioeconomy. From an
economic point view, the identification of an optimal pathway towards a circular
bioeconomy driven by cost of recycling and externalities is central to ensure
economic efficiency. In practice, a series of information obstacles hinder the
implementation (and even the quantification) of this pathway. Hence, articulated
policy mixes are usually needed to promote transition towards a circular
bioeconomy.
Keywords
Bioeconomy · Circular economy · Sustainable development goals · Circularity
1.1
Introduction
The bioeconomy has become one of the main issues in the world technological and
social transitions. The bioeconomy, for its comprehensive view, touches a number of
different societal objectives. An analysis of the 2018 EU Bioeconomy strategy
confirms this point by finding that it is directly related to 12 out of 17 UN Sustainable
D. Viaggi (*)
Department of Agricultural and Food Sciences (DISTAL), University of Bologna, Bologna, Italy
e-mail: davide.viaggi@unibo.it
# Springer Nature Singapore Pte Ltd. 2021
V. Venkatramanan et al. (eds.), Sustainable Bioeconomy,
https://doi.org/10.1007/978-981-15-7321-7_1
1
Bioeconomy
1
Davide Viaggi
Abstract
The concept of circularity has become key for the bioeconomy. The objective of
this chapter is to discuss the concept of the optimal level of circularity, how it can
evolve over time and how it can be operationally used in decision-making about
the bioeconomy. In the background of the current literature on circular
bioeconomy, we first illustrate the concept of the optimal degree of circularity
using a simple market equilibrium framework. Then we elaborate on how this can
be connected to the reality of transition to a circular bioeconomy. From an
economic point view, the identification of an optimal pathway towards a circular
bioeconomy driven by cost of recycling and externalities is central to ensure
economic efficiency. In practice, a series of information obstacles hinder the
implementation (and even the quantification) of this pathway. Hence, articulated
policy mixes are usually needed to promote transition towards a circular
bioeconomy.
Keywords
Bioeconomy · Circular economy · Sustainable development goals · Circularity
1.1
Introduction
The bioeconomy has become one of the main issues in the world technological and
social transitions. The bioeconomy, for its comprehensive view, touches a number of
different societal objectives. An analysis of the 2018 EU Bioeconomy strategy
confirms this point by finding that it is directly related to 12 out of 17 UN Sustainable
D. Viaggi (*)
Department of Agricultural and Food Sciences (DISTAL), University of Bologna, Bologna, Italy
e-mail: davide.viaggi@unibo.it
# Springer Nature Singapore Pte Ltd. 2021
V. Venkatramanan et al. (eds.), Sustainable Bioeconomy,
https://doi.org/10.1007/978-981-15-7321-7_1
1