Circular Business Models and Economic Incentives

Circular economy principles are reshaping business models across sectors. Instead of selling products once, some companies are shifting to service-based models. For instance, a company might lease printers or lighting systems and retain ownership of the product, ensuring it is maintained and eventually refurbished or recycled.

Other businesses are implementing take-back programs, where customers return used goods for credit or responsible disposal. This creates a feedback loop that captures valuable materials and reduces environmental leakage.

Digital platforms also support sharing and resale, from tool libraries to peer-to-peer rental services. These models reduce underused assets and encourage collaborative consumption. Governments and policymakers can support these shifts through incentives such as tax reductions for repair services or penalties for excessive packaging.