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Achieving a Sustainable Circular Economy through Product/Service-Systems

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A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (15 October 2019) | Viewed by 86815

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Special Issue Editors

Prof. Dr. Tim C. McAloone

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Guest Editor

Department of Mechanical Engineering, Technical University of Denmark, Kongens Lyngby, Denmark
Interests: product–service systems (PSS); eco-design; sustainable development; eco-innovation; circular economy; product development; design and innovation
Special Issues, Collections and Topics in MDPI journals

Prof. Daniela C. A. Pigosso

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Guest Editor

Department of Mechanical Engineering, Technical University of Denmark, Kongens Lyngby, Denmark
Interests: circular economy; sustainable design; eco-design; eco-innovation; innovation processes; product–service systems (PSS); change management and business process management; rebound effects
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Circular Economy (CE) is increasingly regarded as a promising approach to operationalising goals and supporting the transition towards a more sustainable society, by enhancing competitiveness, economic growth and environmental performance in many parts of modern society. Achieving CE will require fundamental changes throughout the value chain, from innovation, product design and production processes all the way to end of use, and through the fostering of new business models and consumption patterns.

By focusing on the development, provision and operation of product/service-systems (PSS), rather than merely on the product, the opportunity arises to decouple the creation of value and wealth from resource and energy consumption, through elimination of waste and maximisation of value delivered. PSS is thus one promising means to achieving improved flows of value and materials, moving from traditional linear value creation models, towards circular product/service offerings, where value delivery is the object of transaction, rather than artefacts.

In this Special Issue we invite articles reporting on research, where PSS is being studied as a means to CE, where the transition to CE is studied from the perspective of a number of business processes (incl. business models, design and innovation, value chain and closing the loop), and where the sustainability potential or actual performance of CE solutions is evaluated.

Prof. Tim C. McAloone
Assoc. Prof. Daniela C. A. Pigosso
Guest Editors

Manuscript Submission Information

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Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

Product/Service-Systems (PSS)
IoT and digitalisation
circular economy
sustainable product design
business models
value chain
closing the loops
sustainability assessment
servitisation
eco-innovation

Published Papers (14 papers)

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Research

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30 pages, 5421 KiB

Open AccessArticle

PSS Strategic Alignment: Linking Service Transition Strategy with PSS Business Model

by Mar’atus Sholihah, Tatsuru Maezono, Yuya Mitake and Yoshiki Shimomura

Sustainability 2019, 11(22), 6245; https://doi.org/10.3390/su11226245 - 07 Nov 2019

Cited by 8 | Viewed by 5754

Abstract

One of the most promising business models towards economic circularity is product-service system (PSS). Despite its great potential benefits, shifting the traditional business model of a manufacturer into PSS business model commonly refers to service transition and triggers inconsistencies between strategic direction and organization arrangement at an operational level. The absence of alignment between the service transition strategy and the PSS business model is greatly emphasized as a crucial enabler, risk factor and key success factor of the service transition. However, limited academic works have concretely contributed to the strategic alignment. Through a systematic literature review, this paper proposes a PSS business alignment that enables the manufacturer to identify the strategic objective of its service transition strategy and align it with PSS business model. The theoretical version of the proposed framework is redefined and redeveloped through two cycles of action research involving 11 Japanese companies. Full article

(This article belongs to the Special Issue Achieving a Sustainable Circular Economy through Product/Service-Systems)

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21 pages, 1449 KiB

Open AccessArticle

Evaluating the Environmental Performance of a Product/Service-System Business Model for Merino Wool Next-to-Skin Garments: The Case of Armadillo Merino^®

by Nynne Marie Bech, Morten Birkved, Fiona Charnley, Louise Laumann Kjaer, Daniela C. A. Pigosso, Michael Z. Hauschild, Tim C. McAloone and Mariale Moreno

Sustainability 2019, 11(20), 5854; https://doi.org/10.3390/su11205854 - 22 Oct 2019

Cited by 46 | Viewed by 5205

Abstract

Circular business models are often enabled by means of product/service-systems (PSS). The common perception is that such business models have enhanced environmental performance when compared to conventional business models rooted in the linear economy. This article investigates the environmental potential of developing a use-oriented PSS business model for Merino wool t-shirts intended for use by the British Ministry of Defence as an alternative to the present supply system based on synthetic t-shirts purchased from sportswear clothing companies. To conduct the assessment, we apply the life cycle assessment (LCA) methodology to quantify and compare the climate change impacts and impact potentials of the proposed PSS business model and of a reference business model. Results showed that there could be significant contribution of quantifying environmental potential for PSS business models when justifying the transition to a circular economy. However, when adopting LCA methodology for this purpose, the design of the PSS needs to be well thought to overcome some of the identified challenges. The article concludes by making the case that LCA studies can support the definition, design and value creation of the product/service-systems in early development stages. Full article

(This article belongs to the Special Issue Achieving a Sustainable Circular Economy through Product/Service-Systems)

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22 pages, 2894 KiB

Open AccessArticle

Research Series Review for Transdisciplinarity Assessment—Validation with Sustainable Consumption and Production Research

by Tomohiko Sakao

Sustainability 2019, 11(19), 5250; https://doi.org/10.3390/su11195250 - 25 Sep 2019

Cited by 6 | Viewed by 3286

Abstract

In light of the escalating challenges for the sustainability of our societies, the need for improving the research of sustainable consumption and production (SCP) aiming to make real changes on the societies towards sustainability is evident. Transdisciplinary (TD) research is a promising way to enhance SCP research; however, insights to operationalize the concept of TD research are needed for both funders and researchers. Therefore, this article proposes an innovative way to capture and analyse a research series for transdisciplinarity assessment in qualitative and quantitative terms. This new way is termed research series review (RSR). This article adopted literature analysis and partly reflexive retrospective reasoning. In particular, citation content analysis was carried out in relation to two research series selected as the cases. The results show that RSR has advantages such as clearer traceability with cause-and-effect relationships. Furthermore, a successful SCP research series is hypothesised to form an iterative process between practical and theoretical fields as well as finding opportunities and proposing solutions. Full article

(This article belongs to the Special Issue Achieving a Sustainable Circular Economy through Product/Service-Systems)

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Graphical abstract

22 pages, 2267 KiB

Open AccessArticle

Is Prolonging the Lifetime of Passive Durable Products a Low-Hanging Fruit of a Circular Economy? A Multiple Case Study

by Mohamad Kaddoura, Marianna Lena Kambanou, Anne-Marie Tillman and Tomohiko Sakao

Sustainability 2019, 11(18), 4819; https://doi.org/10.3390/su11184819 - 04 Sep 2019

Cited by 42 | Viewed by 6878

Abstract

Extending the lifetime of passive products, i.e., products that do not consume materials or energy during the use phase, by implementing product-service systems (PSS) has a potential to reduce the environmental impact while being an attractive and straightforward measure for companies to implement. This research assesses the viability of introducing PSS for passive products, by documenting five real product cases of prolonging the lifetime through repair or refurbishment and by quantifying, through life cycle assessment (LCA) and life cycle costing (LCC), the change in environmental and economic outcome. The environmental impact (measured as global warming potential over the life cycle) was reduced for all cases because extraction and production dominated the impact. This reduction was 45–72% for most cases and mainly influenced by the number of reuses and the relative environmental burden of the components whose lifetime was prolonged. The costs for the company (measured as LCC from the manufacturer’s perspective) decreased too by 8–37%. The main reason that costs reduced less than the environmental impact is that some costs have no equivalent in LCA, e.g., administration and labor costs for services. The decreases in both LCA and LCC results, as well as the willingness of the companies to implement the changes, demonstrate that this measure can be financially attractive for companies to implement and effectively contribute to a circular economy. Full article

(This article belongs to the Special Issue Achieving a Sustainable Circular Economy through Product/Service-Systems)

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Graphical abstract

22 pages, 9742 KiB

Open AccessArticle

Configuring New Business Models for Circular Economy through Product–Service Systems

by Marina P. P. Pieroni, Tim C. McAloone and Daniela C. A. Pigosso

Sustainability 2019, 11(13), 3727; https://doi.org/10.3390/su11133727 - 08 Jul 2019

Cited by 83 | Viewed by 11095

Abstract

Product—service systems (PSSs) are often outlined as potential enablers of new business models for circular economy. However, not all business models based on product-service systems have superior circularity potential. This research demonstrates how the application of a previously developed business model configurator for circular economy can support the design and assessment of customer value, economic and resource decoupling potential for product-service system business models in practice. By applying action research in two Nordic manufacturing companies from the furniture sector, different business model concepts based on product-service systems were proposed and assessed. Results indicate positive uptake by companies regarding the usefulness of the obtained outcomes. This research identified two key findings about ‘product-service system business models for circular economy’: (i) their configuration should fulfil certain simultaneous conditions—i.e. superior customer value, economic growth, and resource decoupling potential—to contribute to circular economy; and (ii) they are often ‘niche solutions’, fulfilling specific needs and customer segments, and more likely to flourish with certain types/characteristic of products, segments or geographical locations. Lastly, a framework outlining the conditions and trade-offs for assessing the circularity potential of business models based on product-service systems is introduced as one of the key contributions. Full article

(This article belongs to the Special Issue Achieving a Sustainable Circular Economy through Product/Service-Systems)

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36 pages, 2560 KiB

Open AccessArticle

Leveraging Circular Economy through a Methodology for Smart Service Systems Engineering

by Friedrich A. Halstenberg, Kai Lindow and Rainer Stark

Sustainability 2019, 11(13), 3517; https://doi.org/10.3390/su11133517 - 27 Jun 2019

Cited by 26 | Viewed by 5343

Abstract

Product Service Systems (PSS) and Smart Services are powerful means for deploying Circular Economy (CE) goals in industrial practices, through dematerialization, extension of product lifetime and efficiency increase by digitization. Within this article, approaches from PSS design, Smart Service design and Model-based Systems Engineering (MBSE) are combined to form a Methodology for Smart Service Architecture Definition (MESSIAH). First, analyses of present system modelling procedures and systems modelling notations in terms of their suitability for Smart Service development are presented. The results indicate that current notations and tools do not entirely fit the requirements of Smart Service development, but that they can be adapted in order to do so. The developed methodology includes a modelling language system, the MESSIAH Blueprinting framework, a systematic procedure and MESSIAH CE, which is specifically designed for addressing CE strategies and practices. The methodology was validated on the example of a Smart Sustainable Street Light System for Cycling Security (SHEILA). MESSIAH proved useful to help Smart Service design teams develop service-driven and robust Smart Services. By applying MESSIAH CE, a sustainable Smart Service, which addresses CE goals, has been developed. Full article

(This article belongs to the Special Issue Achieving a Sustainable Circular Economy through Product/Service-Systems)

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29 pages, 2254 KiB

Open AccessArticle

Circular Innovation Framework: Verifying Conceptual to Practical Decisions in Sustainability-Oriented Product-Service System Cases

by Daniel Guzzo, Adriana Hofmann Trevisan, Marcia Echeveste and Janaina Mascarenhas Hornos Costa

Sustainability 2019, 11(12), 3248; https://doi.org/10.3390/su11123248 - 12 Jun 2019

Cited by 49 | Viewed by 6241

Abstract

Product–service systems (PSSs) have significant sustainability potential. However, limited knowledge is available on the choices to develop circular PSS solutions. The goal of this paper is to provide a circular innovation framework containing circular strategies to facilitate the decision-making in PSS circular innovation. A systematic literature review in combination with content analysis underpinned this research. The strategies were investigated in 45 PSS cases from the literature. A coding system was designed and employed to identify and organize the circular strategies and practices. The statistics techniques employed were frequency and co-occurrence analysis, which aimed to describe the synergies among strategies. The framework proposed contains twenty-one circular strategies. The practical perspective comprises the seventy-seven practices used for the operationalization of strategies. The framework can assist organizations in making strategic to tactical decisions when developing circular PSS solutions. The paper provides a panorama of the strategy applications among the PSS types. Finally, the research approach can be employed to continuously develop an understanding of the application of circular strategies in PSS and other fields. Full article

(This article belongs to the Special Issue Achieving a Sustainable Circular Economy through Product/Service-Systems)

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27 pages, 1509 KiB

Open AccessArticle

Unintended Circularity?—Assessing a Product-Service System for its Potential Contribution to a Circular Economy

by Johannes Matschewsky

Sustainability 2019, 11(10), 2725; https://doi.org/10.3390/su11102725 - 14 May 2019

Cited by 37 | Viewed by 5792

Abstract

Product-service systems (PSSs) are seen as valuable facilitators of a circular economy (CE) on a business level. However, that PSSs contribute to a CE is not a given and is determined by the chosen PSS business model and strategy applied throughout the entire lifecycle. Thus, in order to support companies in implementing circular business models such as PSSs, an increasing number of frameworks and methods have been proposed in prior research. This article hypothesizes that many industrial companies are expanding to become PSS providers with neither such support nor a strong sustainability focus. There is a gap in the literature regarding the potential contribution of such PSSs to a CE. Thus, the research reported aims to provide initial insight regarding whether unintended circularity, i.e., an unintended contribution to a CE, may occur when becoming a PSS provider. Applying and adapting an existing framework for the assessment of PSSs’ potential contribution to a CE, the use-oriented PSS of an industrial company was assessed in-depth. Results regarding the relative resource reduction and the prospect of achieving absolute resource decoupling are reported and discussed. While relative improvements over product sales are identified, e.g., resulting from end-of-life efforts on reuse and remanufacturing, opportunities for additional enhancement are found, e.g., in adjustments of the PSS design process. Concerning absolute resource decoupling, a fundamental challenge lies in the use-oriented PSS’s dependency on an increasing number of physical components as the company’s business expands. This article advances the discussion on PSSs’ potential contributions to a CE with an in-depth empirical study. For practitioners, the results reported expand on important aspects of efficient and effective PSS provision throughout the lifecycle. Full article

(This article belongs to the Special Issue Achieving a Sustainable Circular Economy through Product/Service-Systems)

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27 pages, 2505 KiB

Open AccessArticle

Multi-Criteria Decision Making for Sustainability and Value Assessment in Early PSS Design

by Marco Bertoni

Sustainability 2019, 11(7), 1952; https://doi.org/10.3390/su11071952 - 02 Apr 2019

Cited by 56 | Viewed by 9819

Abstract

Sustainability is increasingly recognized as a key innovation capability in the organization. However, it is not always evident for manufacturers how sustainability targets shall be “mixed and matched” with more traditional objectives—such as quality, time, cost, and performances—when designing and developing solutions. The emergence of “servitization” and product-service systems (PSS) further emphasizes the need for making thoughtful trade-offs between technical aspects, business strategies, and environmental benefits of a design. The objective of this paper is to investigate how multi-criteria decision making (MCDM) models shall be applied to down-select PSS concepts from a value perspective, by considering sustainability as one of the attributes of a design contributing to the overall value of a solution. Emerging from the findings of a multiple case study in the aerospace and construction sector, the paper presents a five-step iterative process to support decision making for sustainable PSS design, which was further applied to design an electrical load carrier. The findings show that the proposed approach creates a “hub” where argumentations related to “value” and “sustainability” of PSS solution concepts can be systematically captured in a way that supports the discussion on the appropriate quantification strategy. Full article

(This article belongs to the Special Issue Achieving a Sustainable Circular Economy through Product/Service-Systems)

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11 pages, 822 KiB

Open AccessArticle

Making Ours Mine: Increasing Consumer Acceptance of Access-Based PSS through Temporary Product Customisation

by Vivian S. C. Tunn, Richard Fokker, Koen A. Luijkx, Silke A. M. De Jong and Jan P. L. Schoormans

Sustainability 2019, 11(1), 274; https://doi.org/10.3390/su11010274 - 08 Jan 2019

Cited by 21 | Viewed by 5046

Abstract

Access-based product-service systems (AB-PSS) have the potential to lower environmental impacts. Currently, a lack of consumer acceptance and, consequently, low adoption levels of AB-PSS are challenges preventing the realisation of their sustainability potential. This study proposes temporary product customisation to lower barriers for the acceptance of AB-PSS. We investigated whether customisation through modifying the appearance of an easily changeable attribute of a typical product, and thereby changing the product personality, could improve consumer acceptance while limiting the impact on sustainability. To explore this, a 3 × 1 between-group design experiment was conducted with consumers who are familiar with offerings similar to the AB-PSS we tested. The results indicate that respondents have a strong preference, as is widely recognised, for typical products in an AB-PSS. Infusing meaning and intangible value into accessed products through customisation can simultaneously lead to wider acceptance in the market and individual consumers’ satisfaction. Our findings confirm that consumer acceptance increases if a product fulfils intangible needs along with functionality needs. The results can be used to think about new ways in which product design can enhance the diffusion of AB-PSS in the consumer market. Full article

(This article belongs to the Special Issue Achieving a Sustainable Circular Economy through Product/Service-Systems)

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18 pages, 770 KiB

Open AccessArticle

Enabling Factors and Strategies for the Transition Toward a Circular Economy (CE)

by Claudia Aparecida De Mattos and Thiago Lourenço Meira De Albuquerque

Sustainability 2018, 10(12), 4628; https://doi.org/10.3390/su10124628 - 06 Dec 2018

Cited by 71 | Viewed by 8890

Abstract

This study aims to identify and analyze the enabling factors and strategies for the structuring and diffusion of a circular business model. Circular model structuring involves several actors, challenges, and barriers. In this context, the present study allows discussion of the business structure in line with the principles of circularity and can contribute by mapping the factors and strategies to be worked for business development in the circular context, providing an overview and guidance for academics, businesspeople, and professionals. Through a case study method, the research allowed identification of the factors and an in-depth understanding of the strategies and drivers of circular business models; from the empirical research, it will be possible to identify opportunities that align with what is already known, but also what may be specific to the context of emerging countries to enable the circular model. Full article

(This article belongs to the Special Issue Achieving a Sustainable Circular Economy through Product/Service-Systems)

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13 pages, 1023 KiB

Open AccessArticle

Influence of Reduced Ownership on the Environmental Benefits of the Circular Economy

by Seppo Junnila, Juudit Ottelin and Laura Leinikka

Sustainability 2018, 10(11), 4077; https://doi.org/10.3390/su10114077 - 07 Nov 2018

Cited by 24 | Viewed by 5125

Abstract

The circular economy has become a popular concept, suggesting economic growth with fewer emissions and reduced ownership as one of its key parameters. Based on the literature, however, it appears that the concept has not been sufficiently contested empirically. This study evaluates the carbon and material footprint implications of reduced ownership in the context of household consumption. We found that the reduced ownership does not automatically reduce the environmental impact of the production–consumption system in the context of households. Reduced ownership in the study did not have any noticeable influence on material footprint, and in the case of carbon footprint, it only had a mild positive influence in low-income households. The result is surprising, since both intuitively as well as based on the literature, moving from ownership to services should increase resource efficiency and reduce environmental impact. In the context of households, actual consumption and investment behavior seem to override the theoretical benefits of reduced ownership. In our study, the circular economy rebound and the willingness to invest in green products seems to explain quite well why the environmental impact of consumption is not reduced when households move from ownership to services. Households appear to spend the money saved from reduced ownership on carbon-intensive services; when they own the products themselves, they invest a more-than-average amount in the life cycle performance of the products. The paper’s implications for the circular economy as a concept for decoupling economic growth from environmental pressure is that one of its primary qualities, sharing and renting services instead of owning things, seems to offer only a partial solution for the dilemma. In order to fully benefit from reduced ownership, the circular economy should emphasize simultaneous change in both the production and consumption of services, as it seems that simply offering products for rent does not automatically reduce the environmental impact of the final demand. Full article

(This article belongs to the Special Issue Achieving a Sustainable Circular Economy through Product/Service-Systems)

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25 pages, 1901 KiB

Open AccessArticle

Trade-Old-for-Remanufactured Closed-Loop Supply Chains with Carbon Tax and Government Subsidies

by Tong Shu, Chunfen Huang, Shou Chen, Shouyang Wang and Kin Keung Lai

Sustainability 2018, 10(11), 3935; https://doi.org/10.3390/su10113935 - 29 Oct 2018

Cited by 34 | Viewed by 3548

Abstract

The constantly increasing CO₂ emissions are threatening the environment tremendously. Facing the pressure of environmental activists and public opinion, businesses and governments are taking action to reduce carbon emissions. Among these endeavors, carbon tax and subsidy policies proposed by governments are widely adopted. Remanufacturing is believed to save manufacturing costs and reduce carbon emissions from the process of enterprise operation, and it is increasingly being accepted by enterprises. However, different consumers’ willingness to pay for remanufactured products and the durability of new products will also affect consumers’ willingness to buy remanufactured products. Therefore, considering the discrepancy between consumer willingness to pay and product durability, we established the trade-old-for-remanufactured (TOR) model for a scenario of carbon tax and government subsidies. Through the analysis of the model, we obtained the optimal pricing and production decisions of manufacturers (remanufacturers) in the case of carbon tax and government subsidies. Our results show that, when there is no carbon tax constraint, the increase in consumer willingness to pay and the adjustment in product durability can stimulate consumers to participate in TOR projects and augment enterprises’ profits. However, it can also lead to a carbon rebound that increases corporate carbon emissions. When there is a carbon tax constraint, the introduction of carbon tax contributes to a reduction in carbon emissions, while enterprises tend to lose profits. In order to achieve a “win-win” between corporate profits and carbon emissions, we considered government subsidy policies. Our numerical examples illustrate that appropriate carbon tax and government subsidies can curb carbon emissions and also increase profits for enterprises. Full article

(This article belongs to the Special Issue Achieving a Sustainable Circular Economy through Product/Service-Systems)

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Review

Jump to: Research

22 pages, 3623 KiB

Open AccessReview

Unlocking the Linear Lock-In: Mapping Research on Barriers to Transition

by Liridona Sopjani, Johan Arekrans, Rafael Laurenti and Sofia Ritzén

Sustainability 2020, 12(3), 1034; https://doi.org/10.3390/su12031034 - 01 Feb 2020

Cited by 18 | Viewed by 3512

Abstract

The linear paradigm of take-make-dispose in production and consumption patterns impedes the achievement of global sustainability goals. Strategies for maintaining the added value of resources and circulating them have been discussed as promising for the future. There are, however, many barriers to be addressed to overcome the linear lock-in. The large body of literature on these barriers is notably diverse in terms of theory, methods, sectors, products, and settings. This demonstrates the complexity of delineating implications to the practice and research needs. Without a common framework to analyse barriers, knowledge does not accumulate, hindering the development and implementation of solutions and policies that could effectively address the barriers. In this article, we developed a systematic map of studies on barriers related to the circular transition. The purpose was twofold: (1) to classify published research on barriers; (2) to provide a searchable database for future more rigorous systematic literature reviews. We reviewed the abstract of 527 publications and classified the study according to a developed scheme. This classification scheme includes the research paradigms (circular economy, sharing economy, collaborative consumption and product-service systems), circular strategy (recycling, remanufacturing, component/product reuse, and access-based consumption), country, sector/industry/product, and research approach and method. The resulting research map is open source, serving also as an adaptive digital database for researchers alike to perform systematic reviews and contribute further to its collaborative development. Full article

(This article belongs to the Special Issue Achieving a Sustainable Circular Economy through Product/Service-Systems)

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