Does the circular economy really lead to a reduction in energy and material consumption?

The concept of rebound effects, and the estimation thereof, began in energy economics and referred to a situation wherein an energy efficiency improvement did not lead to reduced energy usage (and in some cases led to increased energy demand), due to a variety of consumer demand responses. More recently, this idea of rebound effects has been adopted in the field of the Circular Economy (CE) leading to questions about whether the CE will in fact precipitate a reduction in material, resource and energy use (Zink and Geyer, 2017). Indeed, whilst the tendency is to conceptualise the CE as a purely engineering system preoccupied with closing loops, this ignores the market dynamics linked to primary and secondary product interactions, which call this into question. Moreover, the fundamental question that underlies the environmental eminence of the CE is whether secondary production activities can “displace”, or in other words reduce, primary production (Zink and Geyer, 2017).

Adopting an economic view of CE as a system of interconnected markets, Zink and Geyer (2017) attribute the occurrence of rebound effects in a CE to two general mechanisms, namely the effect of secondary goods on prices and their insufficient substitutability for primary goods. Insufficient substitutability is linked to the perception of secondary goods being of inferior quality, making them less desirable to the end customer. Consequently, secondary goods are produced in addition to, rather than instead of primary goods, thus reducing (and potentially nullifying) the benefits of CE practices. According to the principles of supply and demand, the increase in supply of (cheaper) secondary goods will result also in a decrease in the price of substitutes (primary goods), since suppliers are competing to attract more buyers. The decrease in prices stimulates the demand (and production) for both goods (price effect) since consumers perceive themselves to have a comparatively higher income than before (income effect). Other research studies have discussed alternative CE rebound triggers and drivers at the micro, meso, macro and global levels (Figge and Thorpe, 2019; Lange et al., 2021).

Against this backdrop, the broad aim of the workshop is to provide students and Early Career Researchers (ECR) with an introduction to the CE and CE modelling and thus help address whether circularity can in fact reduce material, resource and energy consumption. The specific aims of the workshop are to:

1. Provide attendees with a short introduction to the CE and CE rebound effects;
2. Review methodologies for modelling the CE and CE rebound; and
3. Examine mitigation strategies to counteract rebound effects and identify gaps in current research that need to be addressed.

Speakers/rebound experts who will present their research include:

• Professor Andrea Genovese (confirmed)
• Dr David Font Vivanco (confirmed)
• Dr Juudit Ottelin (Confirmed)

Format:

In-person event with presentations from senior academics and opportunities for students and ECRs to present their work (research paper or research proposal depending on career stage) and obtain feedback and guidance.

The deadline for applications – using the link above – is the 28th of August 2024. Please note: financial support is available to help with accommodation and travel expenses. However, to make the project cost-effective, the majority of travel stipends will be allocated to participants from within the region i.e. within Europe.

Please direct any questions to: Ben (benjamin.lowe@sheffield.ac.uk) or Jose (j.fevereiro@sheffield.ac.uk).