The circular economy and cities : application, limits, and barriers

(1)

Joey ten Cate (11742496)

11

th

_{of June, 2018}

The Circular Economy and Cities:

Application, limits, and barriers

(2)

(3)

Abstract

This qualitative research examines the practical application of the Circular Economy (CE) at the city level, which barriers it faces and what the implementation limits are. The excessive use of primary materials due to the high resource demand for production and consumption is a threat to the ecosystems and living environment of future generations. In order to reduce this threat, the economy has to transit from a linear “take-make-waste’’ approach to a restorative and regenerative model (Ellen McArthur Foundation, 2013). Cities have been known as the nodes of intense consumption, where products are bought, used and turned into waste (Rees, 1992; Rees & Wackernagel, 1996). Therefore, cities have been included in the sustainable development goals, stating that they have to reduce their environmental impact, of which the reduction of waste and resource usage is one (UN, 2015). CE discussions have predominantly focused on industrial processes, and failed to critically engage with the process of implementation – its limits and the barriers – at the city level as a transitional solution towards urban sustainability. This has led to the following central question:

What circular activities are currently feasible within the city whilst transitioning to a sustainable form, and what are the limits and barriers to such a transition?

In order to answer this question, the city of The Hague, the Netherlands, was used as the case study, because 1) it is located in a developed nation with a high ecological footprint; 2) it has a national strategy regarding CE; and 3) it is a municipality that has documents concerning CE implementation. Through a directed content analysis of national and municipal documents the CE intentions and strategies were analysed. Additionally, 18 in-depth interviews have been executed with municipal of-ficers, entrepreneurs and experts on the CE, to capture the tangible experiences.

The findings indicate that the city is limited to end-of-pipe practices – recover, remanufacture, reuse and recycle – and thus predominantly influence the output of materials. The muncipality of The Hague can encourage local businesses, which make up 80 per cent of its tenders, to apply circular designs and material reduction. However, it remains subdued to the supply of resources from elsewheres, because its lacking the materials and space to storage and experiment, whilst the demand for materials and products is growing through its consumptive and increasing number of residents. Companies on a national and international stage have to reduce the material input of their products, minimizing the city’s material input. Adjustments in their product designs need to make materials recoverable, reusable and recyclable on the local level. The national and mu-nicipal documents agreed to achieve a CE by 2050, but struggle to be specific on the instruments used, partly because of its strategic economic and political position within the global economy. The CE transition within companies is further blocked by a 1) lacking sense of urgency and responsibility to change; 2) high upfront investment costs and profit risks when devel-oping circular practices; 3) a shortage of technical knowledge; and 4) a taxation system that accommodates a linear economy, not accounting for the ecological damage. Consumers could contribute to the circular transition by acknowledging their consumptive behaviour and its impact, adjusting it and improving their waste separation rates. Therefore, a city is dependent on formation forces of consumers, and national and multinational companies.. Only then it can become the manifestation of circular practices, developing towards a CE with closed loops, that equates with the ecological limits of the planet. The strength of the municipality in the circular transition lies in its close ties with local and family companies, and can stim-ulate clusters and circular hubs to increase integral collaboration and the sharing of ideas and resources. The role of the muncipality is to 1) facilitate both space and knowledge; 2) subsidize new circular activities; and 3) stimulate circular design practices through its role as launching costumer. The municipality has a minor influence on the national and EU taxations and laws, where it can only lobby and advise. The municipality’s effect on citizens’ behaviour is minimal, because they are self-regulatory, but might be influenced through suasive methods and financial stimulus.

(6)

Acknowledgements

I would like to thank all respondents for sharing their invaluable information and experiences. My co-researchers, Kieran Campbell-Johnston and Maja Elfering-Petrovic, and supervisor, Joyeeta Gupta, for their much appreciated feedback, sug-gestions and support. Special thanks to Nicole ten Cate for the time she spent on the design and frontpage, and to Eveline Kiela for her encouragements and support.

(7)

Abbreviations

CE Circular Economy

SDGs Sustainable Development Goals

UN United Nations

SD Sustainable Development

TT Transition theory

EU European Union

EF Ecological Footprint

TNO The Netherlands Organisation for Applied Scientific Research

MIM Made in Moerwijk

SMBs Small, Medium Businesses

MNOs Multi National Organizations

(8)

(9)

1 Introduction

1.1 Purpose and goals

This research examines the limitations and barriers emerging during the implementation of the circular economy (CE) at the city-level. The aim is to document how the CE transition is facilitated within the city of The Hague, the Netherlands, which barriers it meets and its spatial implications. The ultimate goal is discover how CE contributes to a sustainable urban envi-ronment, which circular methods can be applied and the role of the municipality. The following chapter outlines the problem statement and the knowledge gaps (see 1.2), the research questions (see 1.3), and the general structure of the thesis (see 1.4).

1.2 Problem statement

1.2.1 Finite resource management

Dealing with finite resources and identifying when the pool is nearly depleted, has been a struggle for numerous preceding civilizations (Diamond, 2004, p. 16-7). For example, Easter Island’s downfall (around 1722) was the outcome of the exhaus-tion of timber, used to transport the Easter heads (Moai) from the stone quarry “Rano Raraku’’ to the coastline (Diamond, 2004; p. 103). The competition amongst clans and families for the biggest collection and the largest statues drove consump-tion to levels that resulted in complete deforestaconsump-tion. The loss of wild resources and land cultivaconsump-tion opportunities, due to wind- and soil erosion, signified the collapse of Easter Island’s civilization (Diamond, 2004; p. 104, 137-9). Whilst large differences exist between the present society and that of 18th_{century Easter Island, the excessive and devastating over-use} of resources should stand as a stark warning. Today’s society is also characterised by intensive material usage, resulting from consumeristic lifestyles and the unending search for economic growth (European Environment Agency, 2016). The global material consumption is operating unsustainably, a situation expecting to intensify with 3 billion people joining the middle class by 2030 (Grimm et al., 2008; Franco, 2017). Estimations anticipate that the supply of key materials (iron, ore, zinc, bauxite, copper and aluminium) will drop by 50 per cent by 2030 (Gupta, 2014). This is expected to cause unprecedented ecological impacts, which will surpass the planet’s regenerative carrying capacity (WWF, 2016). At the global level, research has suggested that four planetary systems (land use change, climate change, nitrogen overload and loss of biosphere integ-rity) are exceeding their terrestrial boundary (Rockstrom et al., 2009). Due to globalisation and industrialization, the effects of current resource demand is represented at a multi-scaler level and increasingly further away from the location of con-sumption (Rees, 1992; Hojer & Wangel, 2015). Yet, the vast majority of the resources are used wastefully and inefficiently (Circle Economy, 2018). If the management of our natural reserves does not sustainably transit, the global society is doomed to follow the example of Easter Island. Consequently, the United Nations has asserted ambitions to stimulate responsible consumption and production as part of the 17 Sustainable Development Goals (SDGs) (UN, 2015) (see table 1 for relevant goals).

Table 1: Relevant SDGs for this research, including goal 11 and 12.

Source: UN, 2015. 1.2.2 The role of cities

In discussions on the transition towards sustainable resource use, cities play a prominent role. They have always functioned as the hubs off social interaction, exchange in materials and ideas, employment and innovations (Bairoch, 1988; UN, 2014; Frankopan, 2015). Prior to 1800, less than 2 per cent of the world’s population resided in cities. Since the 1960s, urbanization has increased from 33 per cent to 54 per cent in 2016, due to the greater economic opportunities within these spaces (Grimm et al., 2008; UN, 2001; World Bank, 2016; PRB, 2016). Currently, the world’s cities represent only 3 per cent of the Earth’s landscape, yet embody 60-80 per cent of the energy consumption and 75 per cent of the world’s carbon emissions (UN, 2014). The combination of mass urbanization, an advancement of material standards, and spreading consumerism trans-formed cities into the nodes of intense consumption (Rees, 1992; Rees & Wackernagel, 1996). Cities, particularly those in developed parts of the world, are the manifestation of global resource use, emission and waste disposal patterns, which con-sequently causes a considerable impact on anthropogenic climate change (Rees, 1992; Grimm et al., 2008). With increasing urbanisation, these manifestations expand (Egger, 2006). Thus, whilst cities are the issue, they could also form the solution for sustainable development (SD) (Rees & Wackernagel, 1996; Grimm et al., 2008; Hojer & Wangel, 2015).

(10)

economy (Ellen MacArthur Foundation, 2013). Through reusing, recycling and redesigning products and reducing material input, the CE intends to close material and energy loops (Ghisellini et al., 2016). The adoption of CE activities has seen various methods, such as ‘top-down’ approaches in China and multi-stakeholder collaborations in Europe (Saavedra et al., 2018; Geissdoefer et al., 2017).

The CE has led to a mature theoretical discussion in the literature (Ghisellini et al., 2016; Lieder & Rashid, 2016; Korhonen et al., 2018). This has resulted in critical analyses of its principles and methods (Sauve, Bernard & Sloan, 2016; D’Amato et al., 2017). Some research has touched on the process of implementation. For instance, Kirchherr et al. (2017) reviewed the barriers of the CE on the European (EU) level, Halloran et al. (2014) considered the circularity of the food sector in Den-mark, whilst Franco (2017) examined the CE struggles and challenges for the textile industry at the micro level. The alloca-tion of the CE in cities is an academic area that has not been thoroughly examined in relaalloca-tion to practical implementaalloca-tion. This leads to the first gap in knowledge:

1. The practical implications of CE implementation, especially at the city level.

Moreover, research has not considered which components and core principles of the CE (see 2.5.2) can be implemented at the city level (Murray et al., 2017). The different barriers to the CE have been addressed, but only at the EU and national level, not yet on a lower level (Kirchherr et al., 2017; De Jesus & Medonca, 2017). The barriers account for the lock-ins that repress a CE transition and need to be identified in order to understand the challenges. Cities have always stood at the centre of innovations and the implementation of transitions. It is logical then to examine which spatial implications circular activ-ities have and whether circular processes require an alteration of a city’s form to support these activactiv-ities (Jabareen, 2006). This has resulted in the second gap in knowledge:

2. The barriers that are met whilst transitioning towards a CE at the city-level and the limits of circular implementation at this level.

1.3 Research questions

In order to address the gaps in knowledge and to be able to do an in depth research on the case of CE application in cities, the following research question must be answered:

What circular activities are currently feasible within a city whilst transitioning to a sustainable form, and what are the limits and barriers to such a transition?

I applied the following sub questions: 1. What is the CE in the context of a city?

2. How is the transition towards a circular model managed at the city level? 3. What has been achieved regarding circularity within the considered city? 4. What are the barriers to circularity within a city?

5. What are the limits to circularity within a city? 6. What is the role of the municipality?

This research shall provide insights into the role of the municipality regarding the transition to a CE and how it depends on national and international action and processes (Rotmans, Kemp & van Asselt, 2001). The theoretical framework (see Chapter 2) gives a more detailed description of how the gaps in knowledge were found and which concepts and units of analysis were adopted.

The research questions were answered through an in-depth analysis of an individual case, the city of The Hague, which is implementing a CE. The basis for this research was formed through a joint research design, created in collaboration with two fellow master students of Environmental Geography. Each researcher performed their empirical data gathering and analysis on one city, after a collaborative research proposal, including the theoretical framework, conceptual model and methodology. The theoretical framework (see Chapter 2) is inspired by the literature reviews of Campbell-Johnston (2018) (see 2.5) and Elfering-Petrovic (2018) (see 2.4), whilst the methodology (see Chapter 3) is adjusted to fit the case of The Hague. The anal-ysis consists of a directed content analanal-ysis of the national and city strategies towards a CE transition, supported by in-depth stakeholder interviews and additional literature.

1.4 Structure of the thesis

The thesis commences with the theoretical framework (see Chapter 2), which conceptualizes the ideas and principles of current literature on the CE, and captures its application in a conceptual model (see 2.7). Hereafter, the methodological approach is presented (see Chapter 3), justifying the research structure and empirical data gathering. Chapter 4, the content analysis, studies the national and municipal strategies towards a CE. Following, the analysing of the stakeholder interviews interprets the limits and barriers within an urban area (see Chapter 5). Finally, the conclusion is formed in Chapter 6, answer-ing the posed research question, includanswer-ing a theoretical and methodological reflection and recommendations.

(11)

2 Theoretical framework

2.1 Introduction

This chapter assesses the theoretical understanding of the following concepts: the sustainable city, Transition Theory (TT), and CE. Cities needs to transition towards a sustainable design, to safeguard future generations’ access to resources, and minimize the environmental impact on the planet (Grimm et al., 2008). The CE and its components could prove to help the transition towards a sustainable city. In order to fully implement a CE, a city has to go through the phases of the TT, marking the relation between all three concepts. This chapter evaluates the following questions: what do TT and CE assert? And which implications do they have for the sustainable city? The chapter commences with a theoretical summation on the ecological impact of cities and their need to transition (see 2.2). This is followed by a discussion on the different forms, principles and goals of the sustainable city (see 2.3). Hereafter, an examination of TT and the instruments of a sustainably transition is discussed (see 2.4). Section 2.5 analyses the concept of CE, its critiques and application. The chapter is finalized through the explanation of the conceptual model, which incorporates the discussed concepts and principles (see 2.6), giving an overview of the gaps in knowledge and research intention (see 2.7).

2.2 The importance of cities to transition

2.2.1 The environmental impact of cities

When assessing the significance of cities’ effect on the global ecosystem, establishing the scale of impact is essential. The calculation method of the ecological footprint (EF) allows us to capture one’s environmental influence (Rees, 1992). This mea-sures the human demand on nature, i.e. the amount of natural capital (e.g. land and resources) required to support human economic endeavours to sustain themselves (Rees & Wackernagel, 1996). Through trade and the natural flows of goods and services, dependencies are created on elsewheres, which have been increasingly located further away from the city, due to industrialization and globalization (Rees, 1992; Hojer & Wangel, 2015). 21st_{century cities are increasingly connected to the} rest of the world, which increases the amount of trade and waste production. Therefore, cities have an EF way beyond their boundaries; which can add up to ten or hundred times the area of the city itself (Grimm et al., 2008). Rees and Wackernagel (1996) even concluded that, considering the increase in trade, no city or urban region is able to achieve sustainability on its own. Due to urbanization “local, cyclically integrated ecological production systems have become global, horizontally disintegrated, throughput systems’’ (Rees & Wackernagel, 1996, page 242). Therefore, cities are not geographically discrete places. The increasing focus on the context of urban sustainability has seen a declining connection with higher scale levels of environmental governance (Bulkeley & Betsil, 2005). Thus the phenomenon of the ‘black box’ needs to be avoided, which implies that the local becomes disconnected from the framing of localities in the national, international and global contexts (Marvin & Guy, 1997).

2.2.2 The shortcomings of the EF to capture the real life practices

The EF has been useful in raising awareness on the issue of cities and their wider impact. However, there have been critiques on its theory, application and representation. First, it lacks the sensitivity of place and scale, for example the environmen-tal space concept (McManus & Haughton, 2006). Second, it possesses a limited perspective on what sustainability is and hereby does not provide enough attention to social justice and economic progress (McManus & Haughton, 2006). Third, it is critiqued as being too simplistic and unable to adjust to diverse settings (McManus & Haughton, 2006; Fiala, 2008; Rees, 2000). Criticisers question the feasibility and plausibility of the concept, 1) due to the goal of zero emissions; 2) it acknowl-edges national boundaries; 3) but it is incapable of addressing land degradation (Fiala, 2008). Additionally, the EF is seen as “too aggregate, uses a fixed sustainability scenario, represents hypothetical rather than actual land use, makes no distinction between sustainable and unsustainable land use, does not recognize advantages of spatial concentration and specialization, and is in certain applications biased against trade’’ (van den Bergh & Verbruggen, 1999, p. 70). Lastly, it is presumed that the concept is rather static, and cannot account for technological change (Fiala, 2008). Many consumption-related anthropogen-ic impacts resemble the behaviour of individuals, and are barely influenced by structures and forms of urban areas (Rees & Wackernagel, 1996). However, the city could alter its form to stimulate sustainable behaviour. This corresponds with the planning goals of the UE to reduce environmental impacts of urban regions (Deelstra, 1998; Pickett et al., 2001). The next section argues what a sustainable city is, and which principles it includes.

2.3 The concept of the sustainable city

The definition of SD is applied to formulate what a sustainable city entails: a city that “meet[s] the needs and aspirations of the present without compromising the ability to meet those of the future’’ (WECD, 1987, p. 39; Egger, 2006). The compact city and eco/green city have different distinctions of carrying the sustainability label, and are forms of a sustainable city (Jabereen, 2006). They are introduced to determine the characteristics of a sustainable city.

2.3.1 Compact city

Distinct features of a compact city are: 1) high density of population; 2) compact infrastructure; 3) high connectivity of urban transport systems; 4) diversity; and 5) high interlinkages (Dumreicher et al., 2000; Jabareen, 2006). The compactness

(12)

Kenworthy, 1989; Hillman, 1996); and 5) sustainable use of land, which protects rural landscapes beyond the urban edge (Jabareen, 2006).

Fundamentally, a compact city is a high-density environment, with mixed land uses and clear boundaries, which reduces the amount of sprawling (Jenks, Burton & Williams, 1996; Williams, Burton & Jenks, 2000). However, there are examples in which an increase of population density did not decrease environmental hazards, such as air pollution through congestion density and energy usage in one place (Wilby & Perry, 2006; Lohse et al., 2007; Grimm et al., 2008). Arguably, a compact city is only effective with an advanced transport system, which connects with every citizen. The compact city’s criteria has not led to a decrease of emissions, energy usage, travel times, and a boost in the quality of life (Williams, Burton & Jenks, 2000; Hall, 2001; Neuman, 2005). This is due to a surge of car usage and suburbs, which increase travel times and emissions (Balaker & Staley, 2006; Banister, 2005; Beirao & Cabral, 2007; Chapman, 2007).

2.3.2 Eco/green city

Even though there is no commonly accepted terminology of the eco/green city, it was first conceptualized as “an urban environment system in which input (of resources) and output (of waste) are minimized’’ (Kaltenegger & Fink, 2016, p. 320; based on Register, 1987). It thereby focuses on reducing the EF of cities (Kaltenegger & Fink, 2016). This form emphasises: 1) passive solar design (van der Ryn & Calthorpe, 1986); 2) urban greening (Nijkamp & Perrels, 1994; Gibbs, Longhurst, & Braithwaite, 1998); 3) ecological and cultural diversity; and 4) environmental management and other policies that are envi-ronmentally justifiable (Jabareen, 2006). However, this concept focuses more on how urban society organizes and manages itself, rather than the physical shape and built environment that makes a city eco or green (Jabareen, 2006). It could therefore be seen as an umbrella metaphor, as it “encompasses a wide range of urban-ecological proposals that aim to achieve urban sustainability’’ (Jabareen, 2006, p. 46-7). The target of urban sustainability is reached through environmental management, supported by institutional and policy tools, and bottom-up movements (Robinson & Tinker, 1998; Jabareen, 2006).

2.3.3 Characteristics of the sustainable city

Table 2 structures all the found characteristics of the sustainable city, captured from the previous sections. Deriving from the compact and eco/green city form, a sustainable city is able to minimize its environmental impact by creating an urban system with the least possible input and output of materials and flows. This goal can be achieved through transitioning (see 2.4) towards a CE (see 2.5).

Table 2: Characteristics of the sustainable city.

2.4 Sustainable transitions

2.4.1 Transition theory

In social sciences, TT seeks to understand the complexity of socio-economic, political, cultural, and environmental dimen-sions of societal transitions (Wilson, 2012). It is perceived as the development of the processes and dynamics of transitions, and what the roles of the various actors are (Murphy, 2015). Transitions have multi-dimensional characteristics, and occur at multiple locations differently in both pace and form (Rotmans, Kemp & van Asselt, 2001; Geels, 2011; Seeliger & Turok, 2013). Transitions are intergenerational, continuous processes of change, and occur across multiple societal and interacting systems, such as the economy, organizations, politics, technology, culture, and religion (Kemp & Rotmans, 2009). TT has been applied to a wide variety of subjects, but was formed by biological studies and examinations of population dynamics (of both human and animal). In which roles, relationships, and/or routines change (Rotmans, Kemp & van Asselt, 2001). For instance, Rogers & Hackenberg (2010) have studied TT in the changing patterns of morbidity, mortality, and postulates; Wilson (2007) has applied it to agricultural transitions towards multifunctionality; Kirk (1996) has adopted it in demographic studies; whilst Schlossberg, Waters & Goodman (1995) have used it to link the practice of adult counselling to theory. A transition comprises of four phases: 1) pre-development; 2) take-off; 3) the breakthrough and acceleration; and 4) stabi-lization (Rotmans, Kemp & van Asselt, 2001; Kemp & Loorbach, 2003) (see figure 1). During the pre-development phase, there is a status-quo and only small changes can be detected, whilst the necessities for the transition are developing. The take-off phase marks the start of the process of change, where the different actors begin to interact and collaborate. Hereafter the process of transition accelerates and a breakthrough occurs, whilst changes are readily visible in socio-, cultural, eco-nomic, ecological, and institutional dynamics. The degree of acceleration tends to be different for each civilization, nation, community or group. At a certain point, which differs between transitions, the development stabilizes. These stages of TT should not be seen as static and uniform, but as indicators of how a transition is to progress in the ideal situation.

(13)

Figure 1: The phases of (sustainable) transition theory.

Source: Own creation. Based on: Rotmans, Kemp & van Asselt, 2001; Kemp & Loorbach, 2003; Kemp & Rotmans, 2009.

There are three different types of forces that drive the transition; 1) formation forces, which correspond with the possibility of societies to innovate; 2) supportive forces, which can strengthen or weaken the transitional trend; and 3) so called trig-gers, which disturb and shock the system (Frantzeskaki & de Haan, 2009). As established, transitions cannot be governed completely and are non-linear, complex processes (Geels, 2011). However, by successfully identifying and reacting to the mentioned forces, the direction of the transition can be influenced (Kemp & Loorbach, 2003). This is essential to policy makers, as transitions involve long-term fundamental changes, and are associated with new situations and uncertainties. 2.4.2 Sustainable transition

Sustainability transitions are unique, complex, challenging, and long-term processes, which involve multiple actors (Rotmans, Kemp & van Asselt, 2001; Geels, 2011; Murphy, 2015). Studying sustainable transitions boosts the ecological and social benefits through increased actions (Rees & Wackernagel, 1996; Kemp & Loorbach, 2003). Transition management is a meth-od to guide successful sustainable transitions. This strategy integrates long-term reflection to facilitate short-term policies (Rotmans, Kemp & van Asselt, 2001). Transition management is based on an iterative method, with a constant reflect on the process and adjustments to new situations and knowledge, in order to prevent undesirable lock-ins (Rotmans, Kemp & van Asselt, 2001; Kemp & Loorbach, 2003).

Generally, transitions are prevented from taking off by three key challenges: lock-in, path dependency, and the fear of stranded assets. A lock-in implies that a country, city or civilizations is encountering difficulties to reverse decisions because of high costs and passivity (Gupta, 2014, p. 3). Path dependency is based on the historic structures of systems through de-cision-making and institutions (Trouvé et al., 2010). Stranded assets occur when a company or country has acquired assets, which will be worth nothing if the transition takes off on the short term (Caldecott, Tilbury & Carey, 2014). There are four additional challenges in achieving a successful sustainable transition. These include: 1) collective goods and the resulting free rider problem (Geels, 2011); 2) the difficulty to locate user benefits and create business models with direct investment returns (Sarasini & Linder, 2017); 3) vested interest in unsustainable practices and products (i.e. oil, gas and rare minerals) that obstruct a short term acceleration phase (Geels, 2011); and 4) conflicting interest of different institutional scales (i.e. municipality, province, national), influencing the decision making process (Geels, 2011; Hansen & Coenen, 2015).

Thus, past decisions for a linear system can make it difficult to implement circular practices, because the whole economic model (from institutional bodies, companies to consumers) is adjusted to this system, causing a linear lock-in. If this lock-in is breached, it might cause stranded assets and the loss of machinery and jobs accustomed to linear practices, displaying the reason why vested interests might hold back the transition. The city level has to deal with the linear lock-in and correspond-ing decisions made on higher scale levels, such as national and EU laws. However, if the decision is made to transit (see change within path) to a sustainable or circular model, this causes a circular lock-in, which might hold back future transitions (see figure 2).

(14)

Figure 2: Visualization of Path dependency and Lock-in, showing the change within path and potential of a new lock-in once a new path is chosen.

Source: https://www.omicsonline.org/open-access. Text has been adjusted to be visibly improve it.

2.5 The circular economy

2.5.1 The concept of the CE

It is argued that lowering the EF of the developed world is an effective way to reduce global environmental damage (Rees, 1992). Therefore, economic growth needs to stimulate dematerialization instead of growing consumption rates, because it inserts pressure on natural resources and thereby the risk of environmental damage (WCED, 1987). A way to manage resources more sustainably is through redesigning products, leading to reduced material input and improved reusing and recycling (Ghisellini et al., 2016). Since 2014 the CE has emerged as a potential solution to SD, given the universal challenges of environmental degradation and resource exhaustion (Franco, 2017; Geissdoerfer et al., 2016). Arguably, it functions as a practical framework that shapes a more sustainable model of production and consumption (Bocken et al. 2017; Jurgilevich et al., 2015). SDGs 11.6 and 12.5 therefore stress the importance of waste management as a means to reduce the EF, through the principles of the CE (see 1.2).

The CE finds its origins in various conceptualizations of general systems theory, environmental economics, ecological eco-nomics, industrial metabolism, and industrial ecology (Ghisellini et al., 2016; D’Amato et al., 2017; Franco, 2017). The CE is an incorporation of different theories that all favour an economy with a closed loop, such as cradle-to-cradle and the Blue Economy (Geisdoefer et al., 2016; Pauli, 2017). Boulding (1966) argued that the present economy operates in a ‘open’ for-mat. Herein, virgin materials are extracted, produced, consumed, and discarded (Lazarevic & Valve, 2017). The practice of ‘take-make-waste’ is undermining the natural resource base (O’Connor, 1997; Franco, 2017). A more ideal closed economy is preferred. This addresses the initial extraction and the final waste dumping processes; in order to minimize the in- and out-put, and a longer durativity of materials within the system. Pearce and Turner (1990) were the first to introduce the CE as an addition to the current economic system and an alternative to the linear economy. Since the discussions have become more mainstreamed, the definition of the CE has seen a diversification within the different theories (Murray, Skene & Haynes, 2017) (see table 3). What nevertheless connects all the conceptual discussions is that they strive for an economic system that resembles a natural ecosystem, which is in balance with the environmental and ecological limits of the planet (Bonviu, 2014; Dong et al., 2017; Rockstrom et al., 2009).

Various articles have given attention to reviewing the CE and summarizing the contextualization of it (Ghisellini et al., 2016; Lieder and Rashid, 2016; Korhonen et al., 2018a). This has resulted in overlapping, but also clear conceptual ambiguity and disputes on the CE, which makes it more an umbrella of ideas and concepts on a closed economic system (see Table 3) (Korhonen et al., 2018a). The application of the CE to real life situation is a section that only recently saw a surge in publi-cations (see 2.5.3).

(15)

Table 3: Definitions of the CE.

Source: produced by Campbell-Johnston (2018).

CE has three goals: 1) economic efficiency and optimal use of resources (Geissoerfer et al., 2016); 2) eliminating waste, as informed by the EU 2020 Zero Waste Goals (Ghisellini et al., 2016); and 3) the most cited goal is decoupling economic growth from resource consumption and ecosystem depletion by keeping materials and energy in a continuous cycle of reuse (Gregson et al., 2015; Ghisellini et al., 2016; Murray et al., 2017). This marks the difference between the CE, and the linear and reuse economy, because it discourages the increasing demand of raw resources (Dutch Government, 2016) (see figure 3).

Figure 3: The linear, reuse, and circular economy.

(16)

2.5.2 The core principles of the CE

CE has six core principles (see figure 4). The Reduction principle intents to minimize the input of energy, raw materials, emissions, and the output of waste, through the improvement of consumption and production processes (Ghisellini et al., 2016: Jawahir & Bradly, 2016; Kirchherr et al., 2017). Redesigning is the activity of remodelling the commodity of products in order to easily recover materials from previous generations (Jawahir & Bradly, 2016). Recovering refers to the collection of products which have reached the end of their life-cycle, and disassemble, sort, and clean them for usage in subsequent life-cycles (Jawahir & Bradly, 2016). Remanufacturing involves “the re-processing of already used products for restoration to their original state or a like-new form through the reuse of as many parts as possible without loss of functionality’’ (Jawahir & Bradly, 2016, page 105). Through Reusing, the entire product or its parts are reused after its first life-cycle, which results in lower new production rates and virgin material use (Ghisellini et al., 2016; Jawahir & Bradly, 2016). The activity of Recycling aims to convert materials or products, that would otherwise be treated as waste (Ghisellini et al., 2016).

Figure 4: The principles of the CE.

Source: Own creation. Based on: Ghisellini et al., 2016; Jawahir & Bradly, 2016; Kirchherr et al., 2017. 2.5.3 CE criticism

Even though the CE received attention regarding its potential, it has received its fair share of critique. This section presents six criticisms and recapitulates the limits and barriers of the CE, before moving to the practical application.

1) The CE lacks a discussion of its social benefits, which are crucial when it is explored as part of the SD programme (Mur-ray, Skene & Haynes, 2017; UN, 2015). On the other hand, the Blue Economy considers the societal benefits of a circular approach. It poses that multiple benefits should be created through reuse and recycling. The local population profits from the newly produced economic activity in the form of jobs, land protection, and by solving environmental and public issue (Pauli, 2017).

2) The CE does not inspire consumers to change their role in this system and does not state how this role can be changed (Lazarevic & Valve, 2017). The hesitant company culture and accompanying uncertainties to invest in circular practices is stimulated by the lack of consumer awareness and interests (De Jesus & Medonca, 2017; Kirchherr et al., 2017). Cultural and social behaviour marks the first CE barrier.

3) Recycling products and materials may not fully reduce raw materials input and residual waste (Fellner et al., 2017). It might be impossible to purely produce new products on recyclables, whilst not all materials can be utilized indefinitely (Gregson et al., 2015; Fellner et al., 2017; Bocken et al., 2017). Therefore, it can be a technical barrier or even a limit for different products and sectors. Technical barriers are those that prevent further implementation of CE because current technologies are unable to circularly produce (De Jesus & Medonca, 2017; Kirchherr et al., 2017).

4) The Rebound Effect – the reduction in anticipated (environmental) benefits from new technologies that raise resource efficiency – can undermine the exclusion of primary extraction through closing loops, due to behavioural or other systemic reactions (Grubb, 1990). The increase of efficiency in production processes may cancel out previous benefits because they stimulate more production, which requires more materials (Zink & Geyer, 2017).

5) There are economic and financial barriers to closing loops because of market failures, unviable business models, high investment costs, and difficulties of overcoming the linear economic lock-ins (De Jesus & Medonca, 2017; Franco, 2017). Regulatory strategies can stimulate further circularity approaches, but these are hindered by policy measures in place, legal frameworks, taxations, incentives, and infrastructural development (De Jesus & Medonca, 2017). Thus, policies ought to stimulate and support a CE transition (Kirchherr et al., 2017).

(17)

6) It is not self-evident that all circular activities have positive environmental impacts. As said before, it is impossible to recover all material components, whilst residual waste is still present (Korhonen et al., 2018 A). There are also spatial and temporal boundary limitations. The world economy has become globalized and dependencies on elsewheres have been cre-ated, therefore a clear demarcation of the CE’s spatial parameters is needed. As mentioned, CE can still lead to an increase of virgin resource extraction, whilst not stimulating de-consumption and setting goals to keep within ecological limits. It is therefore an ‘alternative growth’ discourse and not an alternative to growth (Ghisellini et al., 2016, page 6).

Thus, limits indicate the extent to which CE can be implemented and which components are feasible on different scaler lev-els (Ghisellini et al., 2016). Barriers on the other hand, are factors that delay and obstruct transitions and are here categorized into technical, financial, regulatory, and cultural (De Jesus & Medonca, 2017; Kirchherr et al., 2017). These barriers can be seen as the vested interests or are subjected to past decisions, causing a linear lock-in. These critique points mark the incom-pleteness of CE discussions and the room for theoretical improvement. The next step is to analyse the practical applications on the city level, to see whether the CE is applicable in order to transit to a sustainable urban form.

2.5.4 Application of the CE in cities

Affluent cities remain a primary driver of “altered biogeochemical cycles globally’’, through their excessive waste accumu-lation (Grimm et al., 2008; Bulkeley & Bestill, 2005). Additionally, in order for a city to grow, it relies on large quantities of energy and materials, whilst discharging an equivalent amount of waste (Rees & Wackernagel, 1996). A CE could inevitably reduce the usage of virgin materials, and dumping of usable end products (Andersen, 2007). On the theoretical and macro level there is an excessive amount of literature available (Ghisellini, 2016; Gregson et al., 2015), whereas it is lacking at the micro level.

Studies on metabolism have looked at the resource distribution of the city-level. These analyse the flows of materials and energy within cities, providing a metaphorical framework to examine the relations between human and natural systems in specific contexts (Barles, 2009; Decker et al., 2000; Warren-Rhodes & Koenig, 2001; Shaley, Dudding & Kennedy, 2003; Kennedy, Pincetl & Bunje, 2011). This shows resemblance with the CE, even though the goal is different, and the CE has a more societal and practical contribution.

Concerning CE at the city level, researchers have investigated its application in the Chinese city context. Liu et al. (2009) and Su, Heshmati and Yu (2012) have looked at the application of the national strategy of China in the cities of respectively Tianjin and Dalian. Additionally, Ma et al. (2013) have studied the circular economy applied to China’s iron and steel industry in Wu’an city. Another article presents the current situation of the waste management system of the megacity Ho Chi Minh in Vietnam, and the options for waste and land recycling in low income countries (Schneider et al., 2017). These studies are all based in developing nations, whilst the CE in China is based from a top-down, planned, development strategy consider-ing the rapid industrialisation in this country (Ghisellini et al., 2016). The articles argue that obtainconsider-ing the right technology is the most pressing issue, whilst the right funding for CE from the Chinese government is lacking. In the EU context, CE activities are pursued by civil society initiatives and cooperation between distinctive stakeholders (Geissdoefer et al., 2016). Ribica, Vocab and Ilakovac (2016) have adopted the circular approach to the city of Zagreb, Croatia, but in order to evaluate the waste management system. These studies give an indication of the limits, accentuating that improving waste management is within the reach of a city’s capability, whilst giving little to no attention to reducing material inputs.

As proven with the EF of cities and their dependency on elsewheres, it is questionable when and under what conditions cities are able to apply the CE accordingly. The presumption that a sustainable city should minimize in- and outputs, through which the environmental impact is reduced, show resemblance with the components of the CE and the ultimate goal of closing the production loops. Therefore, it is assumed that the CE falls within the sustainable city, for which the former can be seen as a means to realize the latter. The next section produces a conceptual model that captures and summarizes the line of thought throughout this theoretical framework and shows the units of analysis.

(18)

2.6 Conceptual model

Figure 5 illustrates the conceptual model for this research and thereby captures the storyline of the theoretical framework. Firstly, an explanation further clarifies the conceptual model, and finalize this chapter with the gaps in knowledge and inten-tion of this research.

The conceptual model shows a timeline of a perfect transition towards a sustainable city and an optimal CE. It captures the stages of TT, as indicators of reaching a complete CE. In the first phase, predevelopment takes place in which no specific change can be detected, but the necessities to set-off the change are developing. In the second phase, the take-off, the transi-tion starts and the actors begin to interact and collaborate. At this point, stakeholders can stumble upon financial, technical, institutional or cultural barriers that delay the CE transition until actively dealt with. During the acceleration/breakthrough phase, the changes are clearly visible and the transition is in full flight. Amid these phases, the six components are executed and honed to eventually close material loops within a city. However, at a certain point it encounters the limits of the CE in their sector or scaler level, from which the transition stabilizes. Through reducing, redesigning, recovering, remanufacturing, reusing, and recycling products and materials, it is possible to achieve minimal in- and outputs and thus lowering the EF of cities. However, it is unknown how and under what conditions a CE is possible within the boundaries of a city.

Figure 5: Conceptual model.

Source: Co-created with Campbell-Johnston and Elfering-Petrovic.

2.7 Research intention

This research investigates the feasibility, limits, and barriers of CE implementation at the city level. As established, reduc-ing the material in- and output is an objective to reach a sustainable city, which intends to minimize its EF (see 2.2-3). The section on TT (see 2.4) has established that there are four phases to a CE transition. Furthermore, there are three different forces to drive a transition: 1) formation forces; 2) supportive forces; and 3) triggers (Frantzeskaki & de Haan, 2009). The discussion of the CE has appointed to the more general definition in table, consisting of six components (see 2.5.2). The transition towards the CE and the implementation of these circular practices, face certain barriers that have created a lock-in through path dependency and vested lock-interests. Section 2.5.3 has determlock-ined that there are four barriers that mark this lock-in situation: 1) Technological; 2) Financial; 3) Institutional; and 4) Cultural. The limits characterizes the maximum of CE implementation and which methods can be applied within a city. These units of analysis have been subjected to different qualitative methods, which are explained and justified in Chapter 3. Considering the found literature and analysing the overall discussions on TT, sustainable cities and CE in the previous sections, the following gaps in knowledge have been established and correspond with those introduced in section 1.2.3:

1. The practical implications of CE implementation, especially at the city level.

2. The barriers that are met whilst transitioning towards a CE at the city-level and the limits of circular implementation at this level.

The intention of this research is resolve these gaps and to be able to synthesize whether the city is the appropriate level for CE implementation, through a set of research methods and units of analysis that are explained in the next chapter (see Chapter 3).

(19)

3 Methodology

3.1 Introduction

This chapter explains the steps and methods that were used to execute this research. It sets the approach to data collection and answers the question: How has CE been examined in the context of a city? The methodical approach corresponds to the research question and the goals of this study. A recall of the research question: What circular activities are currently feasible within a

city whilst transitioning to a sustainable form, and what are the limits and barriers to such a transition? First, justifications are given for the

specific methods used (see 3.2), next a reflection on the concerns related to research validity and replicability are presented (see 3.3), finalizing the chapter with the limits and scopes (see 3.4).

3.2 Data collection

This research establishes what the feasibility, limits, and barriers of a CE are within the urban context. Because a mature literature base is lacking on this subject this research intended to be of exploratory nature. Thus, an inductive and qualitative research design was pursued in order to study a novel phenomenon (Baarda et al., 2013; p. 220; Franco, 2017; Boeije, ‘t Hart & Hox, 2009; p. 83). Qualitative research aims to “understand the social world through an examination of the interpretation of that world by its participants’’ (Bryman, 2016, p. 366). It considers the context (Boeije, ‘t Hart & Hox, 2009, p. 249). As the types of barriers and limits are not established yet, it would not have been possible to apply a quantitative research that could find out which barriers or limits are most frequently experienced (Boeije, ‘t Hart & Hox, 2009). Qualitative research in this case had the advantage of allowing unexpected serendipitous findings to be uncovered, which could expand the under-standing of the CE within a city (Boeije, 2010). Hence, a qualitative research stays close to specific social reality and therefore proves to consist of a high ecological validity (Baarda et al., 2013; p. 35).

The data collection was executed in multiple phases (see figure 6). Firstly, a summation of three literature reviews formed the theoretical foundation of the research (see 3.2.1). Second, a case study approach was determined based on a specific city (see 3.2.2). Third, a content analysis was performed (see 3.2.3). Finally, semi-structured interviews were conducted with relevant stakeholders within the city of The Hague, henceforth the data was analysed, with the pursued intention of triangulation (see 3.2.4 & 3.2.5).

Figure 6: summation of the different research phases.

3.2.1 First phase: Literature reviews

The reviewing of literature is a part of the data collection, but is indubitably more than that. It is the foundation of the analysis, the attempt to structure what has been prior to this research, and the practice of identifying the gaps in knowledge (see 2.7). The literature reviews have critically examined the current literature on three concepts: sustainable cities, TT, and CE theory (see 2.1). The execution of each literature search was done in a similar fashion. First, a search for the most cited articles was performed, because of their theoretical acceptance and review character, pertaining to the respective research topic (see appendix A). A provisional analysis of these articles informed more specific searches regarding significant themes within each topic. For example wider searches on sustainable cities led to articles on compact cities and eco/green cities. This was required to comprehend the full story of the concept from general understanding to its application relating to CE and the city level. The combined outcome of these reviews established the noticeable gaps in knowledge, but also an in-depth understanding of the concepts. Through combining the three literature reviews, a conceptual framework was produced which outlined the units of analysis (see 2.7).

3.2.2 Second phase: Case study approach

This research takes a singular case study approach. This entails a detailed and intensive analysis of a single case, associated with a specific location, and is favoured in qualitative research (Gerring, 2011; Bryman, 2016). The characteristics of a case are that it ;1) ought to have identifiable boundaries; 2) is a single point in or over a period of time; 3) is holistic and thick; 4)

(20)

The chosen case has met the three criteria. First, the case is sited in an developed nation: the Netherlands has a Human Development Index of 0.924, which ranks them seventh in the world regarding health, education and income (HDR, 2015). Furthermore, their EF is recorded to be 5.9 per person, ranking them 22nd_{in the world (GFN, 2014). The Hague is the} capital of the province of South-Holland, the third largest municipality of the Netherlands, with 526,439 inhabitants (CBS, 2017) (see map 1). Most employees work at governmental institutions or international organisations. Industry is but a small part of the city’s economy, whilst business services and health care make up their fair share. This shows that the economic focus of the city is on the service sector, indicating its affluent character. Second, the city is located in a country that has a national strategy regarding CE, aiming to be fully circular by 2050 (Dutch government, 2016) (see 4.2). Lastly, the city itself has documented plans and strategies towards circularity (see 4.3). The city in general is in an exploratory stage where it mapped the different initiatives that include a circular approach (Wijsmuller, 2017).

Map 1: The location of the case study The Hague.

3.2.3 Third phase: Directed content analysis

The third phase of this qualitative research approach was a directed content analysis. The analysis was based on pre-existing theory, to identify the key concepts and categories. This provides direction and context for the next stage of data collection and analysis (Hseih & Shannon, 2005). This analysis studied the national agenda and strategies of the Netherlands regarding the CE ‘A CE in the Netherlands by 2050’ (Dutch Government, 2016). Hereafter, the city strategy regarding the CE was examined to highlight which sector(s) it prioritizes, and what its similarity and difference are from the national strategy (see Chapter 4). This has established the existing strategy of the city, which actors are involved and the instruments used to en-courage circularity. Next, semi-structured interviewing have taken place with actors highlighted from the content analysis. The documents were analysed based on the principles of a circular approach (2.6.2). Thus, the city-specific strategies were inspected and coded according to the following questions: 1) What do they imply with a CE? 2) What are the goals? 3) Which sectors, stakeholders and circular components are included? and 4) Through which instruments (e.g. suasive, policy)? 3.2.4 Fourth phase: Qualitative, stakeholder interviewing

The fourth phase was qualitive, stakeholder interviewing. This technique is one of the most applied in qualitative based research (Bryman, 2016, p. 466). An interview’s purpose is to establish what people think, know, and feel regarding a spe-cific topic. They are conducted in either a structured, semi-structured or unstructured way based on the research’s inten-tions (Baarda et al., 2013, p. 145). The goal of interviewing is to reach saturation, which is attained when “a) no new or relevant data seem to be emerging regarding a category; b) the category is well developed in terms of its properties and dimensions demonstrating variation; and c) the relationships among categories are well established and validated’’ (Bryman, 2016, p. 421). This research used semi-structured interviews, with the interview guide being based on literature and content analysis of official documents, whilst the topic guides used were prepared following the outline given by Bryman (2016) (see Appendix C). The intention was to keep the interview format informal, to establish an environment in which the interviewee could contribute topics they in addition deemed relevant. Hence, this is an exploratory research, which implies that themes found are not defined and the context of reality can differ or be more dynamic.

(21)

order to merge theory with practice (See table 5). The respondents of this research might have had different interpretations of these concepts. To negate this issue a clear conceptual operationalization was needed, to grant an uniform and clear pre-sentation of the concepts, which improves mutual communication (Boeije, ‘t Hart and Hox, 2009).

(22)

3.2.5 Sample plan of stakeholder interviewing

In order to comprehensively understand how the CE is applied in a city, the relevant stakeholders involved were found via web and LinkedIn searches, and through snowballing during interviews (Boeije, ‘t Hart & Hox, 2009, p. 263). There was not a fixed number of cases needed (Small, 2009), but to reach saturation and to obtain a complete picture of the CE in an urban context, 18 in depth interviews were conducted between March and April 2018 (see appendix B). The interviews lasted between 30 and 45 minutes, with some exceptions of 60 or 70 minutes. The interviews were conducted at an agreed location and face to face (two via telephone). The interviews were recorded and transcribed afterwards, whilst the interview-ees remain anonymous.

To avoid impression management bias from the interviewees and ensure a representative case study (Eisenhardt & Graeb-ner, 2007), a balance between the different stakeholders had to be attained: five municipal representatives, six experts in a consultant or academic role, six entrepreneurs supporting or initiating circular activities and one delegate from the national government. This research utilized a polycentric model, in which interconnected and overlying horizontal spheres of au-thority participating within the CE are examined (Bulkeley & Betsill, 2005). Interviewing with the various CE stakeholders exposed the current application, limits, and barriers in the city as a whole.

3.2.6 Triangulation

The interviews were coded thematically using Atlas.ti. Each transcribed interview was examined line by line and given the appropriate codes, through an inductive open coding process, which corresponded with the units of analysis (see 2.7 & see appendix D) (Bryman, 2016, p. 543). Hereafter, a synthesized analysis has brought together the interview codes and those of the content analysis to produce a more comprehensive analysis and secure validity (see 3.3). For the purpose of validity examining the phenomenon of CE from different angles was imperative. This was done by triangulating the various data sources together in order to draw out the linkages and contradictions (Boeije, 2010). By employing a variety of qualitative methods, the data has been enriched and the quality of the research enhanced (Boeije, 2010). Additionally, triangulation tests whether the concepts used indicated the same description in every instance (Baarda et al., 2013, p. 75; Bryman, 2016, p. 386).

3.3 Validity and replicability

I examined the validity to ensure reliability of a qualitative research (Boeije, 2010). The essence of reaching a decent validity is to have a well prepared initial focus, interview guides, and having an interconnected, and consistent red line from the intro-duction to the conclusion. Validity refers to being specific about what is to be assessed and can be divided in face-, content-, external-, and ecological validity (Boeije, ‘t Hart & Hox, 2009). In face validity, the translation of the construct needs to be properly represented in the operationalization (Boeije, ‘t Hart & Hox, 2009, p. 157). The content validity covers the opera-tionalization and whether this is representative for the relevant content domain (Bryman, 2016). In order to reach the criteria of content domain, there needs to be a good detailed description and whether all the items are part of the instrument (i.e. the interview guide) (Boeije, ‘t Hart & Hox, 2009, p. 156-157). Part of the content validity is covered by approaching experts and ensuring member validation (Boeije, 2010). The external validity encompasses the extent to which the results of the study can be generalize to other situations. Whether the operationalisation stays close to reality is referred to as the ecolog-ical validity. If these validities are met, it ensures the replicability of the research for other contexts, such as different cities and sectors. This thesis has been reviewed by multiple peer reviewers in order to assure these forms of validity. To further guaranty the validation of the results, the respondents have been given the proposition to receive the provisional results, to verify whether their additions and quotes were interpreted and processed correctly.

3.4 Focus and limits

This thesis is written from a human geography perspective, with a qualitative approach. Therefore, it is not a technical, urban metabolism piece through a material flow analysis, limiting the conclusions made on closing loops. it is an analysis of the dynamic application barriers and limits of the CE at the urban level. It therefore focusses on the processes of CE imple-mentation and institutional actions within a unique case study, analysing it through a directed content analysis and in-depth stakeholder interviews. The outcome present whether the city-level is the appropriate level for CE implementation, if it can reach this goal of the sustainable city on its own. This research could help to identify barriers, setting reasonable goals con-sidering existing limits, and establishing the role of the municipality. Hence, the goal of a case study approach (see 3.2.2) is to generalize for a larger research population, given its correspondence with other cases in the Netherlands and Europe. The resemblance is thereby found in the criteria for selecting a case (see 3.2.2). The ultimate goal of the collaboration with my coresearchers is to give general insights on which barriers and limits are present in cities when implementing a CE.

The generalizability of this research is limited, because it only examines one city located in a EU country. Therefore, it is difficult to generalize the results for other cities, located in other country and on other continents, due to the socio-cultural differences. Furthermore, each city has its own dynamics, cultural influences and consumption patterns which could prove to stimulate or slow down CE implementation. The exploratory nature of this research excludes a detailed analysis of circu-lar activities within sectors or for products and is therefore not able to determine product and company specific measures. The research of CE is multi-disciplinary, because it touches upon various fields of study, such as economics, politics, social behaviour, and technology. This made the subject and research broad, and sometimes difficult to comprehend and compile from a human geography approach.

(23)

4 Content analysis of the national and city CE strategy

4.1 Introduction

This chapter describes the details of the case study through a content analysis of the national and city CE documents, which provides context for the barriers and limits of the CE implementation (see Chapter 5). Herein, the following questions are answered: How do the aforementioned strategies formulate the CE and its components? What are their goals, strategies, and which stakeholders do they include?

The chapter commences with the analysis of the national strategies including; their understanding of the CE concept and its components (see 4.2.1), their current phase and goals (see 4.2.2), their methods and focus (see 4.2.3), and finally their expectations (see 4.2.4). The following section, 4.3, evaluates The Hague’s; understanding of the CE and its components (see 4.3.1), their current phase and goals (see 4.3.2), their strategies and focus (see 4.3.3), and their expectations (see 4.3.4). The resolution of this chapter determines how the national and The Hague’s strategy are comparable, and how they resemble the theory (see 4.4).

4.2 CE strategy of the Netherlands

4.2.1 Understanding of CE and its components

The review of the strategy of the Netherlands regarding the CE is based on a document published in September 2016 “A circular economy in the Netherlands by 2050’’ (Dutch Government, 2016). This document was stimulated by an EU degree set forth by the European Commission on the 2nd_{of December, 2015, that action needed to be taken in order to get from} waste to resources and to stimulate the CE transition. Additionally, it takes into account the multiple ways in which the SDGs consider the importance of the CE and how the national strategy supports those goals.

The document commences with the necessity of transitioning towards a CE, stating three developments: 1) the explosive de-mand for resources; 2) the Netherlands’ dependency on resource imports; and 3) the coherence with emissions and climate change. The Dutch government (2016) formulates the CE as follows:

The preservation of natural capital will be taken as a starting point in the economic system, such that renewable and generally avail-able raw materials are used wherever possible. To that end, raw materials are optimally deployed and (re-)used without any risks for health and the environment, and primary raw materials, insofar as they are still needed, are extracted in a sustainable manner. (p. 13) They envision a transition from a “take, make and waste’’ system to one that uses a minimal amount of virgin materials. This is supported by redesigning products and production processes, as such that the materials can be reused and recycled. The life cycle of the products need to be extended, whilst also asserting more conscious usage by consumers, and reuse processes need to be improved and expanded. This formulation is partly based on the definition of the CE by the Ellen Macarthur Foundation (2013). Therefore, it is comparable with the theoretical definition of the literature discussed in chapter 2. How-ever, as seen in the conceptual model (see 2.6), the CE also entails recovering resources and remanufacturing products, which are scarcely discussed by the Dutch government (2016). They also formulate that in the CE waste disappears as it is presently perceived, whilst everything we use is reused in some way. However, they also stress that “the circle will never be entirely closed and absolute decoupling at the global level seems to be feasible only in the very long term’’ (Dutch government, 2016, p. 13). This is not compatible with their goal of being fully circular by 2050, so how do they interpret a complete CE? This is something that remains unclear from the study of the national agenda. Hence, the Dutch government (2016) stresses that the CE is a global affair and the Netherlands is dependent on other countries and regions in order to be fully circular (WECD, 1987; Rees & Wackernagel, 1996; Grimm et al., 2008). Even though this is realistic and complies with figures 3 and 4, in which the accretion of resources and residual waste is still present, the question remains whether in practice the CE only requires production efficiency and up-cycling.

4.2.2 Current phase and goals

The goal of the Netherlands is to be fully circular by 2050, with an intermediate target of 50 per cent reduction in virgin ma-terial use by 2030. Currently, the Netherlands is one of the leading countries in reusing waste (CBS, 2018). The necessity of adopting CE is highlighted in the large quantities of virgin material imports and domestic extraction, which currently stand at 549 billion kilos in total over 2014 (Figure 7). The amount of recycling was only 9 per cent of the total material input of the Dutch economy, whilst comparing it with the domestic material consumption this was 22 per cent. This indicates that even though the Netherlands reuses 81 per cent of the waste produced, the amount of virgin materials used is still immense. The intention of the CE is to minimize virgin material input and to increase the reusing of material output (Ellen McArthur Foundation, 2013; Ghisellini et al., 2016; Jawahir & Bradly, 2016; Kirchherr et al., 2017). Figure 7 shows that the Netherlands are managing their waste output, but the focus should shift to material input if it is to meet its goal of a fully CE in 2050. However, 328 billion kilos of materials have been exported in the year 2014, of which 119 billion kilos was re-export and the rest was processed. This shows that the Netherlands is a trading nation and dependent on the international market for

(24)

Figure 7: Material flows in the Netherlands, in billion kilograms, 2014.

Source: https://www.cbs.nl/nl-nl/nieuws/2018/15/via-recycling-9-procent-van-materialen-weer-in-economie

The national circular strategy has been presented to the public, companies and municipalities in 2016. The national govern-ment is waiting for responses on the experiences of implegovern-menting during the take-off phase of the CE on the provincial and municipal level, before it can take supportive or triggering measures, such as adjusting the laws and regulations (Frantzeskaki & de Haan, 2009). However, the national government has to be aware of the fact that transitions are non-linear, complex processes, and only the direction can be influenced (Kemp & Loorbach, 2003; Geels, 2011).

4.2.3 Focus and strategies

The Dutch government has focused on specific sectors with the highest circular potential and resource usage. It has there-fore created transition agendas for the following sectors:

1. Biomass and food 2. Plastics

3. Manufacturing 4. Construction industry 5. Consumer goods

The reduction of materials accounts for minerals, fossils and metals. The strategic goal is three layered: 1) raw materials in existing chains need to be used with higher standards and efficiency, leading to a reduction of resource demand in the given production; 2) virgin materials that are fossil, scarce and unsustainable need to be subsided by those that are sustainable, re-generative and generally available; and 3) developing new production methods, redesigning products and areas, and promote new forms of consumption. The document signifies that for the goals to be accomplished, consumers, companies, and pub-lic institutions need to contribute to a more thoughtful use of resources, before, during and after the life cycle of products. It addresses that new and more intertwined collaborations are needed between the stakeholders, within the value-chains and on the different scaler levels.

The government sees its role as a stimulator of the CE and tries to clear the way for it to take-off and accelerate. Constrain-ing rules and laws are thereby to be adjusted or removed, whilst companies and entrepreneurs that intend to save resource are financially and institutionally supported. Thus, supportive measures are taken, e.g. stimulating laws and regulations, market incentives, subsidising, distribution of knowledge and innovation, international collaboration, and circular behaviour (Frantzeskaki & de Haan, 2009). However, details of these methods and how these are implemented are absent from the na-tional strategy. It is mentioned in the document that the benefits and costs for nature and the environment are not included in the prices of products, whilst including these social impacts could promote circular business cases. The first step towards a CE in the Netherlands is formulated in the Resource Agreement (2017), which marks the starting point of collaborate action. Herein, it is expressed that the bottlenecks need to be explored, which retain the realisation of the CE and that clear solutions need to be conceived. The Dutch Government claims the needed partnership with the municipalities and compa-nies to a higher degree achieve circular initiatives and is thus relying on formation forces (Frantzeskaki & de Haan, 2009). 4.2.4 Expectations

Based on a report by The Netherlands Organisation for Applied Scientific Research (TNO) (2013), the Dutch government (2016) predicts that the adoption of a complete CE in 2050 will annually generate additional profits of 7.3 billion euros for the involved sectors, leading to 54,000 jobs. The expectation is that resource use can be reduced by one fourth of the yearly usage, i.e. 100,000 kilotons. The redesigning of certain production process might also reduce water and energy usage. Anoth-er report, by the Rabobank (2015), suggests that in a business as usual scenario, a CE increases the gross national income by 1.5 billion euros, whilst in the case of full circularity it might grow up to 8.4 billion euros. However, it also leads to shrinking