It is more important now than ever that we strive to reduce negative human impact on the earth. One way in which we can do so is to adopt an economic system that manages (and reduces) waste. One such model, first proposed in 1991, is called the Circular Economy (CE).
The idea of the Circular Economy was first proposed by British environmental economists Pearce and Turner in Economics of Natural Resources and the Environment. You can read more on their concept here.
Basically, the CE is a regenerative and sustainable economic system that is a viable alternative to the current, throwaway linear economy. While the linear economy is a “make, use and dispose” model that treats the environment as a waste reservoir, the CE is a system that reduces waste and environmental degradation. How? By narrowing material and energy loops through design, maintenance, repair and reuse.
This video by CNBC explains the model perfectly, as well as how businesses are using this economic model today: