implies closing the cycle of nutrients (nitrogen and phosphorous). Reducing waste
from production and consumption, and changing consumption patterns towards
solutions adapted to use less resources, can contribute to circularity (Viaggi 2015).
In general, as biomass is basically derived from solar energy fixation, if biomass
is produced sustainably, it can be considered renewable and the emitted CO 2 , as well
as waste flows, can largely be reused into new primary biomass within ecological
cycles (Jordan et al. 2007). However, while this applies at the global scale, systems
may be rather far to be circular, even assuming input of solar energy, at the local
scale. In addition, circularity in general refers to the anthropic system, hence
excluding ecosystems and, in this respect, the minimisation of waste and the
promotion of reuse is key to increasing the circularity of the bioeconomy (Cardoen
et al. 2015).
Circularity is also becoming an issue in bioeconomy firm management. On the
one hand, use of by-products is more and more a key strategic topic in promoting
innovation and building competitiveness in key bioeconomy industries such as the
food sector (Strøm-Andersen 2020). On the other hand, the industry organisational
shift is pushing attention to the use of appropriate business models for the circular
bioeconomy addressing in turn the topic of both new forms of business and
mechanisms for value creation (D’Amato et al. 2020).
1.3
Optimal Rate of Circularity
Circularity in an economic perspective can be addressed under the lens of the
optimal level of recycling/reuse (or more generally of circularity). The starting
concept is that different circularity can be achieved using different technological
and organisational solutions. These solutions have different effects/performances
including financial/economic, environmental, institutional and social (da Cruz et al.
2014). It may be expected that these solutions are used starting from the cheapest
ones, so that there is an issue concerning when to stop, i.e., what is the optimal
degree of reuse. All of the dimensions above should hence be accounted for in
discussing the optimal level of circularity.
Few examples are provided in the literature. Among them, Kinnaman (2014) and
(Vollaro et al. 2016) study the issue of optimal recycling rate from the perspectives
of, respectively, recycling in municipal waste management and phosphorous recovery from municipal wastewaters. Figure 1.2 illustrates the concept of the optimal
level of recycling.
Figure 1.2 illustrates the market of a resource that can be obtained either through
harvesting from natural sources (equivalent to extraction/mining) (supply function
S) or from recycling. Suppose the recycling can be performed through a high cost
technology represented by line RS 1 . The cost of harvesting is assumed to be growing
with increasing use, reflecting an increasing marginal cost of supply. On the opposite, in order to keep things simple, we initially assume that RS 1 is a horizontal line,
i.e., with constant marginal cost. The technology based on RS 1 is profitable only if
demand reaches a very high level (i.e. when RS 1 crosses S), but it is normally not
4
D. Viaggi
from production and consumption, and changing consumption patterns towards
solutions adapted to use less resources, can contribute to circularity (Viaggi 2015).
In general, as biomass is basically derived from solar energy fixation, if biomass
is produced sustainably, it can be considered renewable and the emitted CO 2 , as well
as waste flows, can largely be reused into new primary biomass within ecological
cycles (Jordan et al. 2007). However, while this applies at the global scale, systems
may be rather far to be circular, even assuming input of solar energy, at the local
scale. In addition, circularity in general refers to the anthropic system, hence
excluding ecosystems and, in this respect, the minimisation of waste and the
promotion of reuse is key to increasing the circularity of the bioeconomy (Cardoen
et al. 2015).
Circularity is also becoming an issue in bioeconomy firm management. On the
one hand, use of by-products is more and more a key strategic topic in promoting
innovation and building competitiveness in key bioeconomy industries such as the
food sector (Strøm-Andersen 2020). On the other hand, the industry organisational
shift is pushing attention to the use of appropriate business models for the circular
bioeconomy addressing in turn the topic of both new forms of business and
mechanisms for value creation (D’Amato et al. 2020).
1.3
Optimal Rate of Circularity
Circularity in an economic perspective can be addressed under the lens of the
optimal level of recycling/reuse (or more generally of circularity). The starting
concept is that different circularity can be achieved using different technological
and organisational solutions. These solutions have different effects/performances
including financial/economic, environmental, institutional and social (da Cruz et al.
2014). It may be expected that these solutions are used starting from the cheapest
ones, so that there is an issue concerning when to stop, i.e., what is the optimal
degree of reuse. All of the dimensions above should hence be accounted for in
discussing the optimal level of circularity.
Few examples are provided in the literature. Among them, Kinnaman (2014) and
(Vollaro et al. 2016) study the issue of optimal recycling rate from the perspectives
of, respectively, recycling in municipal waste management and phosphorous recovery from municipal wastewaters. Figure 1.2 illustrates the concept of the optimal
level of recycling.
Figure 1.2 illustrates the market of a resource that can be obtained either through
harvesting from natural sources (equivalent to extraction/mining) (supply function
S) or from recycling. Suppose the recycling can be performed through a high cost
technology represented by line RS 1 . The cost of harvesting is assumed to be growing
with increasing use, reflecting an increasing marginal cost of supply. On the opposite, in order to keep things simple, we initially assume that RS 1 is a horizontal line,
i.e., with constant marginal cost. The technology based on RS 1 is profitable only if
demand reaches a very high level (i.e. when RS 1 crosses S), but it is normally not
4
D. Viaggi