Can a Circular Economy Lead to Resource Conservation? A Case Study of Long-Term Resource Efficiency Measures in the Small Manufacturing Company

The circular economy is often seen as a solution to waste and overconsumption and a way to achieve sustainable living. When discussing the implementation of the circular economy, manufacturers tend to be perceived as gatekeepers to more sustainable and circular products and as the main polluters. They also are identified as the primary beneficiaries of new circular business models. However, many circular activities result in the growth of the secondary products market without affecting the primary product market and lead to an increase in overall consumption, production, and environmental impact. This unintended increase in consumption is referred to as the circular economy rebound effect and has parallels with energy efficiency measures. This chapter analyses an energy efficiency campaign at the level of a middle-sized manufacturing company in the middle of the supply chain. This chapter discusses the drivers and challenges manufacturers face while implementing efficiency measures. A brief review of the business model impact is also presented. The limitation in manufacturers’ power to change the design of the products is highlighted. The chapter concludes with recommendations for designers and a warning that the proposed solutions may not be suitable for profit-making manufacturers in the growth economy.