From Socio-technical Innovations to Ecological Transitions: A Multilevel Perspective on Circular Economy

This chapter promotes pluralism in the discussion of a circular economy, contrasting existing use and innovations with a systems perspective. The authors argue that the strength of a circular economy lies in changing perspectives on production, consumption, and exchange, enabling a participative economy based on capital management. It aims to resolve the tension between the circular economy as a ‘toolbox’ and a ‘framework for thinking’, subsuming the former under the latter. Evidence suggests that a circular economy offers three key insights: gathering principles from other schools of thought to inspire policy actions, evoking a socio-technical transition into multiple regimes, and contributing to environmental and economic sustainability through eco-effectiveness. The EU supports this through its Circular Economy Action Plan as part of the European Green Deal. The chapter emphasizes the deeper idea of using insights from living systems to design eco-effective systems, reflecting the perspectives of original circular economy writers. Implementing eco-effective approaches may be challenging due to the current linear system’s lock-in. The concept of eco-effectiveness shifts thinking towards positive footprints and rebuilding capitals, encouraging an ecological transition. However, this approach is still little discussed scientifically. The lack of economic discussion may stem from the existing economic system’s focus on creating and maintaining scarcity for economic rents. Moving towards eco-effectiveness requires a policy shift that engages participatory stakeholders. In conclusion, the circular economy is practical and engaging as a heuristic, but it also carries the potential for a new economy based upon feedback-rich complex systems. This aligns with the complexities of real-world systems, necessitating a focus on enduring participatory systems and expanding all capitals as solutions accessible to the majority.