Stocks and Flows in the Performance Economy
The performance economy is a concept which goes beyond most interpretations of a “circular economy”: the focus is on the maintenance and exploitation of stock (mainly manufactured capital) rather than linear or circular flows of materials or energy. The performance economy represents a full shift to servicisation, with revenue obtained from providing services rather than selling goods. While the form of industrial economy which has dominated the industrialised countries since the industrial revolution is arguably appropriate to overcome scarcities in a developing economy, the performance model is applicable in economies close to saturation, when the quantities of new goods entering use are similar to the quantities of goods being scrapped at the end of life.
Key elements of the performance economy are re-use and re-manufacturing, to maintain the quality of stock and extend its service life by reducing material intensity, i.e. the material flow required to create and maintain the stock. Because material flows represent costs which reduce the revenue from service provision, business models inherent in the performance economy support the macro-level objective of extending service life and thereby minimising material intensity. Product life in the performance economy is limited by technological improvements in the efficiency of manufactured capital rather than by damage, wear or fashion.
Re-use and re-manufacturing tend to be more labour-intensive and less capital-intensive than virgin material production or primary manufacturing. This enables re-use and remanufacturing to be economically viable at smaller scales. It also enables these activities to substitute labour for energy, reversing the trend which has characterised industrial economies and offering ways to alleviate current environmental, economic and global challenges; i.e. to make the economy more sustainable. However, there are significant barriers to adoption of the performance economy model, partly because economic and business models generally focus on flows (GDP or added value) rather than prioritising the quality, value and use of stock. Promoting the performance model may require a complete re-think of public policy, away from subsiding to taxing use of non-renewable resources and away from taxing the use of renewable resources, of which labour is possibly the most important. Recent analyses of the social costs of unemployment and potential social benefits of a more resource efficient performance economy provide some of the evidence supporting a shift from flow to stock management.
KeywordsCircular economy Flows Goods as services Manufactured capital Molecules as services Performance economy Re-use Recycling Remanufacturing Reprocessing Service life Stocks
Economic activities, particularly trade, are usually characterised in terms of flows of goods, energy and services. Many areas of industrial ecology focus on flows, and concepts such as the “circular economy” are framed in terms of recycling and re-use flows. However, wealth itself is a stock, not a flow: the wealth of societies is based on their stocks of goods and capital. Arguably, the quality of life in a developed society depends more on the quantity and quality (Q&Q) of its stock than on the flows through the economy. Stocks represent accumulated flows. Therefore, the flows needed to develop and maintain capital stocks are important, particularly in developing economies; the relationship between flows and stocks is explored in Chap. 6. But this chapter explores some of the insights revealed by focussing on managing and using the stocks themselves rather than flows. This is one of the central principles in the concept of the “performance economy” (Stahel 2010).
Natural capital can be treated as a Global Commons, using a stock management approach, such as sustainable fishing and forestry. If a flow maximisation approach is applied instead, natural capital will inevitably be degraded, repeating the “Tragedy of the Commons”; obvious examples are over-fishing, loss of biodiversity and accumulation of foreign substances such as toxins, salts and plastic debris.
Maintaining quality with its associated tensions is also a widespread concern for Cultural capital; the UNESCO world heritage programme is regularly faced with the dilemma of balancing protecting sites against their economic exploitation. Cultural capital includes immaterial stocks such as music and local traditions; these can be shared but commercialised sharing may lead to loss of quality through dilution.
Human capital is intrinsically linked with intangible acquired capital; i.e. skills and capabilities. Human capital is the only resource whose quality can be improved through education and training. Developing and maintaining human capital as a renewable resource is one of the issues explored in this chapter.
The Role of Incentives in Flow Versus Stock Management – The Case of Reforestation
If the wealth of societies is based on the quantity and quality (Q&Q) of capital or stocks, a delicate balance is necessary to maintain stock quantity without compromising stock quality. Growth can be defined as increase in Q&Q of stock rather than flow. To achieve this, policy measures need to shift from a flow to a stock approach: witness reforestation programmes in countries like Nepal, which are directed and financed by Western organisations.
Local people are paid to grow seedlings, plant them on barren slopes, water them regularly and protect them by fences - a typical production-driven flow approach. Local people respond in a flow-focused way by minimising their work load, which means reforesting slopes near villages rather than the slopes presenting the biggest hazards (the stock approach). As villagers have conflicting priorities, such as feeding their goats and cattle and working as tourist guides, they will often neglect the maintenance of the fences, and goats will eat the young trees. A new reforestation programme will follow, financed by well-meaning sponsors.
In a stock management approach, the villagers are instead paid a modest fee for each tree on the village property. The driver for reforestation is then villagers looking for a higher donor income by increasing their stock of trees, which includes protecting young trees from being eaten by animals as much as planting new trees. The barrier is that donors, including the World Bank, generally do not pay for stock management but only for flow. The same applies to preventive measures versus post-disaster repairs.
The focus in this chapter is on manufactured capital: i.e. material goods and fixed assets. This includes infrastructure (for energy distribution, communications, transport, and water and other services), buildings (industrial, commercial, institutional and domestic), equipment (both “productive” and appliances used by “consumers”) and durable consumer goods (including, for example, furniture and garments). Focussing on the stock brings out the importance of something which is often overlooked: durability or service life of manufactured capital. This is explored later in this chapter.
2 The Circular Economy – “Loop”, “Lake” and “Performance” Models
Distinguishing between capital stock and flows opens up useful perspectives on the idea of a “circular economy” which aspires to replace the linear “once through” industrial economy which has dominated business in the industrialised countries since the industrial revolution. In the linear economy, the focus is on management of throughput flows. On the macro-economic level, the performance of the industrial economy is judged by measuring the sum of all flows (GDP); on the micro-economic level, by calculating the value added to the flows. Its optimisation stops at the point of sale where the responsibility for operating and disposing of the goods is passed to the buyer.
Arguably, the industrial economy is the best strategy to increase stock and expand economic activity to overcome scarcities of food, housing, infrastructure and/or equipment, as they exist in many developing countries. However, in markets near saturation, so that the number of new goods is similar to the number of scrapped goods, the relevance of the paradigm of economic growth has been questioned (e.g. Jackson 2009); in the absence of quantum leap innovation, the circular economy is a more viable business model than the industrial economy with regard to environmental, economic and social factors. Even where technology quantum leaps do take place through rapid innovation, the circular economy will complement the industrial economy.
Different interpretations of the circular economy place different emphasis on the elements in Fig. 7.1. At its simplest (but also least profitable and materially efficient), the circular economy takes the form of the Loop economy, focussed on recycling (loop 2 in Fig. 7.1) in which the material of the product is not lost as waste but is reprocessed for return to the same use. This is the interpretation embodied in China’s “Circular Economy” laws, for example. In the Loop Economy, ownership changes with each loop, each owner aiming to achieve the highest profit when passing on material goods.
The “Loop” or “cradle-to-cradle” concept is still framed in terms of flows and therefore overlooks ways to optimise the physical and economic performance of the economy based on optimising the use of the stock. An example of good stock management is provided by the 2008 EU Waste Directive, which appropriately calls for the reuse and service-life extension of goods as priorities, putting waste prevention before waste management. The Lake economy uses the same loops as the Loop economy, but with a focus on value preservation through stewardship and without changes in ownership: The main economic actors in such an economy are here termed “fleet managers”: they operate a fleet of similar goods, such as the vehicles of haulage or transport companies, and maintain their components (e.g. engines and tyres in the case of road vehicles). These owners may have their goods repaired or remanufactured by independent service companies. The focus is on managing the stock rather than the flows: “fleet managers” maintain ownership of their stock and therefore profit from the economic advantages of re-use and remanufacturing strategies.
If economic actors are selling performance, through business models such as “goods as services” or “molecules as services”, which means earning revenue and profits from stocks instead of flows, they shift from the Lake Economy, with its focus on maintaining the stock, to the Performance Economy which focuses on maximising the value obtained from using the stock. The Performance Economy demands an internalisation of the costs of waste and of risk over the full service-life of goods, which in turn are substantial financial incentives to include waste prevention and loss prevention at all stages in the product cycle from design to decommissioning.
The Performance Economy is primarily driven by competitiveness, the Lake Economy by long-term operation and maintenance cost optimisation and the Loop Economy by (environmental) legislation. Some of the business implications of the shift to the Performance model are explored by Stahel (2010) and in Sect. 4 of this chapter.
The stock perspective is routine for infrastructure and buildings but less familiar for other forms of manufactured capital. The shift from a flow to a stock perspective is enabled when economic actors (companies, consumers and public entities) assume longer-term ownership or stewardship of, for example, fleets of vehicles or goods, changing their business approach from the bigger-better-faster-safer model of an industrial flow economy to the functional view of goods of a Lake Economy. The motivation for commercial actors is usually to reduce operating costs (for example, retreading truck tyres by haulage companies, remanufacturing diesel engines), whereas public actors (armed forces and public administrations like railways, NASA) seek to reduce long-term system costs (mothballing of warships, “cemeteries” of aircraft for access to spare parts). For consumers, the motivation may be a personal relationship with goods (the “teddy bear” effect which leads individuals to keep personal souvenirs such as watches or pens, or family heritage objects such as paintings or vintage cars). By retaining the ownership of the goods and their embodied resources, fleet managers gain a resource security with regard to both future availability of resources and commodity prices. Expected scarcity of some critical materials therefore provides another driver to take the stock perspective.
If loops involve professional services, transaction costs occur, adding to the costs and often influencing the choice of the next owner: for example, sales such as buildings, domestic premises and artworks require fees to individuals or specialist dealers. However, some OEMs take back their own goods, disassemble them and reuse components as service parts, a strategy pursued by many IT manufacturers, or remanufacture and remarket them in exchange for faulty products. Such service exchange systems are used by some European car manufacturers: damaged car engines and gearboxes which cannot be repaired locally are returned to the OEM in exchange for an OEM-remanufactured product1; Sony Computer Entertainment Europe offers a remanufactured exchanged product when customers return a faulty product for repair, in order to reduce the time a customer is without the product. Further illustrative examples are discussed in later sections.
3 Remanufacturing, Reprocessing and Product Life
3.1 Material Intensity and Product-Service Intensity
(g/e) is the emission intensity of the sector expressed as a ratio of GHG emissions to energy used. The emissions arise largely from energy use (directly from combusting fossil fuels, and indirectly through purchasing electricity and steam) and therefore depend most critically on the emission intensity of the background energy system of the economy where the goods in question are made. However, emissions also arise from industrial chemical reactions; in particular, producing cement, chemicals and non-ferrous metals leads to release of significant “process emissions” regardless of background energy sources.
(e/p) is the energy intensity of production . Approximately three quarters of industrial energy use worldwide is required to create materials from ores, oil or biomass, with the remaining quarter used in the downstream manufacturing and construction sectors that convert materials to products (IPCC 2014). In some cases, particularly for metals, e/p can be reduced by production from reused components or recycled material (see below) and can be further reduced by exchange of waste heat and/or by-products between sectors through industrial symbiosis.
(p/S) is the material intensity of the sector: the material flow required to create and maintain the stock.
(S/d) is the product-service intensity; i.e. the quantity of stock required to deliver the required service.
Equation 7.1 has a number of important implications, underpinning the specific business strategies explored in Sect. 4. The emission intensity term, (g/e), depends primarily on the fuel mix used in the extractive, processing and manufacturing operations and the background economies in which they are located. The energy intensity of production, (e/p), which is the usual target of industrial improvement and innovation, is also obviously important. These terms underlie concerns over the “carbon leakage” resulting from the potential migration of primary manufacturing to economies with high carbon intensity and possibly lax environmental standards (see for example Clift et al. 2013) but the scope for reducing (e/p) is limited by technological and thermodynamic constraints (Allwood et al. 2012). We therefore concentrate here on the other terms in Eq. 7.1 which are key for the circular and performance economies: material intensity, (p/S), and product-service intensity, (S/d). These parameters are measures of the efficiency and quality of the stock: low values indicate good system performance. Reducing the product-service intensity means using capital goods more intensively, for example through “pooled” use of vehicles or appliances. Material intensity can be reduced by design measures such as “lightweighting” and, importantly but less obviously, is also dependent on product life, re-use, remanufacturing and recycling.
3.2 Remanufacturing and Reprocessing
To reveal the significance of material and product-service intensities and product life, we explore the flows needed to maintain the stock of manufactured capital, S, as shown in Fig. 7.2. The “Re-use” loop (see Fig. 7.1) is treated here as an activity needed to keep the stock in use; it is therefore not shown in Fig. 7.2 because inputs to and losses from re-use are included in iS (see below). Of the flow of goods into stock, p (as in Eqs. 7.1 and 7.2), a fraction r 1 is remanufactured and the balance is newly manufactured goods incorporating a fraction r 2 of recycled material. The input of primary material to the product system is therefore (1−r2)(1−r1)p. Unsurprisingly, increase in r1 or r2 reduces the need for primary material.
3.3 Product Life
Extend service life, T, to reduce throughput, p
Intensify use to reduce stock needed, S
Increase the proportion of post-use products remanufactured, f1
Increase the proportion of post-use products reprocessed, f2
Reduce the inputs required for manufacturing, i M
Reduce the inputs required for reprocessing, i P
Reduce the inputs required for remanufacturing, i R
Reduce the inputs required for primary material production, i X .
4 Economic and Social Implications
The principal of stock management is caring (stewardship) to maintain the quantity and quality of stock. This applies to most stocks, including natural, human and manufactured capital, and is radically different from the bigger-better-faster-safer (fashion) thinking underpinning the industrial economy. The throughput (flow) optimisation of production in global supply chains is replaced by asset (stock) management in the circular economy; the economic concept of value added is replaced by the objective of value preservation. What is of interest to investors is the fact that the return on investment (ROI) of a remanufacturing plant is usually many times that of a plant manufacturing the same goods from scratch, due to lower capital cost. On the other hand, the operating costs, notably labour, are typically much higher. These differences have a number of important implications.
4.1 Business Models in the Performance Economy
Retained ownership of goods and their embodied resources by a manufacturer or fleet manager; this supports objectives (1) and (2) of the priority list developed in Sect. 3;
The skills and powers of an original equipment manufacturer (OEM), to support objectives (3) to (8);
The skills of an economic actor responsible for the operation and maintenance (O & M) of a fleet of goods, to support objectives (3) and (7).
Successful operation in the performance economy incorporates all three components. Selling performance (or “servicisation”) entails internalising the costs of risk and waste over the full service life of the manufactured capital. As a result, different ways have emerged to combine the roles of the three different types of actor to increase stock life, quality and performance and reduce transaction costs. They are illustrated by the specific examples shown in Fig. 7.4 and itemised in the text box. Manufacturers exercising the O & M of their goods through service contracts give their customers a function guarantee; this provides reassurance of quality and encourages users to retain the stock. This also encourages modular design to facilitate upgrading rather than complete replacement; for example, some lift manufacturers adapt existing elevators by replacing single doors with modern double door sets; devices with electric motors can be equipped with electronic speed control to improve energy efficiency; office equipment companies (e.g. Xerox) use modular system design with standardised components across different product lines. Retaining ownership encourages management of end-of-life goods. Performance monitoring of stock in use and preventive maintenance to guarantee uninterrupted performance are essential, where possible using maintenance strategies which minimise or eliminate the need to stock spares.
As indicated in Fig. 7.1, the performance economy entails intelligent decentralisation, with generally more localisation of economic activity than in the industrial economy. This provides further opportunities for the development of industrial symbioses (see Chap. 5). Re-use is inherently local. The geographic scale of Loop 1 activities (remanufacturing) is determined by the mobility of goods, the extent of standardisation of goods and the batch size necessary to reach a competitive remanufacturing volume. For immobile goods, such as infrastructure and buildings, service-life extension activities require mobile labour and mobile workshops. For stand-alone goods, such as engines of tractors, buses, ambulances and vintage vehicles, local remanufacturing workshops may be optimal because the remanufacturing costs are secondary to the clients’ wish to continue operating the vehicle. In textile leasing (hotel or hospital textiles, which have to be washed or sterilised daily), the optimal transport distance is about 100 km (Stahel 1995: 249); franchising can therefore be a better business model than centralised treatment. The geographic scale of Loop 2 activities (reprocessing) is determined by the technology used; many metallurgical processes, associated with high capital cost, need to be operated at large scale to be competitive with primary production. However, the dominance of labour and logistic costs, rather than capital, in re-use and remanufacturing reduce the economies of scale and are therefore consistent with smaller scale, decentralised operations.
Examples of Business Activities in the Performance Economy (Figure 7.4)
(1) RETAINED OWNERSHIP + (2) OEM + (3) O&M
tyre use by the mile (e.g. Michelin)
power by the hour (e.g. Rolls-Royce turbines)
illumination: “pay per lux” ( e.g. Philips)
office equipment: “pay per copy” (e.g. Xerox)
(1) RETAINED OWNERSHIP + (2) OEM
Molecules as Services
chemical leasing: “rent a molecule” (e.g. lubricants, cleaning solvents)
mining: nation state grants “licence to operate” but retains ownership of the output (WEF 2015)
(2) OEM + (3) O&M
commercial and service equipment (e.g. freezers, elevators)
chemical management systems
integrated crop management
(3) O&M + (1) RETAINED OWNERSHIP
Goods as Services
transport (e.g. shipping, buses, containers)
“wet” leasing of aircraft: aircraft plus crew plus fuel
real estate (e.g. hotels, time-shares)
short-term equipment rental (e.g. vehicles, tools)
What was probably the first research report to articulate the idea of a circular economy set out to identify the potential for substituting manpower for energy (Stahel and Reday 1976). It found that on a macro-economic level, three quarters of energy is used in mining activities and basic material production, while one quarter is used in manufacturing goods from basic material; the same estimates are reported by IPCC (2014). For manpower, the proportions are reversed: three quarters of the labour input into finished products is in the manufacturing of goods, with only one quarter in resource exploitation and primary production. Service-life extension focuses on activities which are kin to manufacturing before automation and are the most labour intensive. As noted in Sects. 2 and 3, end-of-life goods must be collected using non-destructive and non-diluting collection processes (rather than compactor lorries); the collected goods must be disassembled into components and materials (instead of being shredded); the components and materials must be screened to separate parts to preserve value (using skills and experience) so that components can be repaired or remanufactured and materials can be sorted to be recycled in the purest form and kept separate to minimise contamination. Each of these steps is more labour-intensive and resource saving than in the linear make-use-waste approach.
Examples of the Manpower Intensity of Re-use, Repair and Remanufacture (Stahel 2010)
An analysis of the running costs of a 30-year-old automobile (Toyota Corona Mk II of 1969) reveals that the share of labour costs as a percentage of accumulated total costs increases from 18 % after 10 years to 34 % after 20 years to reach 48 % after 30 years (Buhrow et al. 1999).
The remanufacture of a Jaguar XJ6 engine necessitated 120 h of labour and new parts of a total weight of 20 kg; the labour-input per weight ratio of 6 man-hour/kg material input is 240 times that of manufacturing a new car engine (pp. 198/9).
The Eiffel Tower in Paris is completely repainted every 7 years; 25 painters spend more than 12 months to apply 60 tonnes of paint on 250,000 m2 of iron elements; the labour input per weight ratio is 0.7 man-hours per kg (p. 191).
The remanufacture of the gearbox of a Lorry needs 59 h of manpower if parts are individually repaired, at a cost of CHF 10,400; or 23.5 h at a cost of CHF 16,000 if damaged parts are replaced by new ones. (p. 220).
Medieval cathedrals have teams of masons spending a lifetime repairing the stonework to check decay and prevent the eventual collapse of the landmark buildings. A similar workshop exists for the Golden Gate Bridge in San Francisco. (p. 208).
The biggest potential for creating jobs and developing skills lies in repairing and remanufacturing standardised goods, such as infrastructure, buildings and stand-alone mobile and immobile goods, preferably in local workshops using and developing the human capital represented by skilled labour. They thus contribute to preserving the “industrial commons” – an industrial network of customers, skilled labour and subcontractors which is an essential knowledge base for innovation and the emergence of new industries (Pisano and Shih 2012). Some companies active in repair, maintenance and remanufacturing activities acquire sufficient knowledge to move upstream into manufacturing innovative new products in their field of activity (see box).
The Hidden Innovation Potential of Operation and Maintenance Services
Some companies active in repair, maintenance and remanufacturing activities acquire sufficient knowledge to move upstream into manufacturing innovative new products in their field of activity. Witness Israeli Aircraft Industries (IAI), which started as maintenance service provider before assembling fighter planes and today is a leading manufacturer of drones (pilot-less remotely controlled aircraft); and Stadler Rail in Switzerland, moving from a local maintenance service provider for rolling stock (railways) to become a major European manufacturer of regional trains.
4.3 Fiscal Policy
By reducing dependence on primary resources and energy and providing skilled employment, the performance economy has the potential to alleviate many current economic, environmental and social problems, i.e. to contribute to improved sustainability. However, promoting and developing this economic model requires a comprehensive re-examination of public policies, moving away from the fragmented policies of most public administrations. The “whole system” approach of industrial ecology, which provides the background to the idea of the performance economy, reveals the inconsistencies between policies to preserve stocks (natural and cultural capital, for example), to tax flows (levies like Value Added Tax) and stocks (human and financial capital) and to subsidise consumption of stock (such as fossil fuels).
These inconsistencies are exemplified by the 2012 “cash for clunkers” policy followed in 22 countries, which had the ambitions of stimulating national economies by increasing the demand for new cars (i.e. the flow of new goods) and simultaneously reducing GHG emissions from vehicles in use. The policy ignored the GHG emissions resulting from recycling old cars (i.e. the ‘clunkers’) and manufacturing their replacements. In many countries, the cars bought were imports; in some cases, “clunkers” were not destroyed but exported and sold abroad (Ashok et al. 2012; Antoniades 2013). In a circular economy perspective, the same payments could have been offered to remanufacture/retrofit stock, e.g. to remanufacture the car engines and convert them to compressed natural gas. As this job is best done in local workshops, it would have created local jobs. It would have avoided the GHG emissions from recycling the clunkers and manufacturing their replacements, and substantially reduced emissions in use.
OECD Guidance (2015b): due diligence guidance for responsible supply chains of minerals from conflict-affected and high-risk areas (“Guidance”);
Rules of the U.S. Securities and Exchange Commission on Disclosure of Payments by Resource Extraction Issuers (US SEC 2012);
UN (2013) Mercury agreement, designed to reduce emissions and ensure an efficient utilisation of stocks of resources;
Do not tax renewable resources, noting that human labour is renewable, but exclusively tax non-renewable resources, wastes and emissions;
Do not levy value added tax (VAT) on the value preservation of stock (such as reuse and service-life extension activities);
Give carbon credits to carbon emission prevention (smart stock management) at the same rate as to carbon emission reductions (cleaner flow).
It must be emphasised that the proposal here is for a shift in the tax base rather than an increase in tax levels. A fiscal policy of sustainable taxation could make many subsidy policies redundant; taxing non-renewable resources instead of labour would give clear incentives to economic actors to shift from flow to stock business models. In addition, it would make all stock management activities (looking after people’s health, looking after natural and cultural capital) more competitive. In the USA, eleven States do not tax labour (human capital) but flow of non-renewable resources (for example, the construction industry in Florida, the oil and gas industry in Texas). In Canada, the move in British Columbia towards taxing GHG emissions (B.C. 2013) appears to be having effects which are both environmentally and economically beneficial (Elgie and Clay 2013). Not levying value-added tax (VAT) on value preservation activities would give goods in the circular economy a substantial cost advantage over new goods (around 20 % in most EU countries), again giving economic actors a clear incentive to change from flow to stock management.
5 Industrial Ecology and the Performance Economy
The idea of the performance economy has developed separately from developments in industrial ecology (Stahel 2010). One of the main objectives of this chapter is to show how thinking on the performance economy embodies the idea of an industrial ecosystem articulated by Frosch and Gallopoulos (1989), so that the performance economy is underpinned by and applies industrial ecology concepts and tools including life cycle management, accounting of material flows and stocks, resource efficiency, urban metabolism, servicisation and dematerialisation. Localisation of re-use, remanufacturing and some reprocessing can open up new opportunities for symbiosis between industrial activities. Although the drivers for the performance economy are primarily economic (or could be primarily economic under an appropriate fiscal regime), the model has the potential to alleviate the same environmental, economic and social challenges which industrial ecology seeks to address.
The performance economy represents industrial ecology in action.
Quantity of service delivered in specified time period (e.g. passenger-km per year for personal transport)
Energy use (e.g. GJ/year)
Energy input to a sector producing material products (e.g. GJ/year)
Energy input to using manufactured stock (e.g. GJ/year)
Fraction of q routed to remanufacturing
Fraction of q routed to recycling/reprocessing
GHG emissions from energy sector (e.g. tonnes CO2e per year)
GHG emissions associated with a sector producing material products (e.g. tonnes CO2e per year)
Interventions (i.e. exchanges across the system boundary) associated with operations and activities, per unit of output; i.e. inputs (e.g. energy or labour or financial costs) or outputs (e.g. emissions or wastes)
Flow of materials or products into use (e.g. tonnes/year)
Outflow of materials or products from use phase (e.g. tonnes/year)
Fraction remanufactured goods in flow p
Fraction recycled material in newly manufactured goods
Stock of manufactured capital (e.g. tonnes)
Subscripts Indicate Operation or Activity
Use of stock to deliver services
Extraction and primary processing
- Allenby, B. R. (1999). Industrial ecology: Policy framework and implementation. Upper Saddle River: Prentice Hall.Google Scholar
- Allwood, J. M. (2014). Squaring the circular economy: The role of recycling within a hierarchy of material management strategies. In E. Worrell & M. A. Reuter (Eds.), Handbook of recycling. Waltham: Elsevier.Google Scholar
- Allwood, J. M., Cullen, J. M., Carruth, M. A., Cooper, D. R., McBrien, M., Milford, R. L., Moynihan, M. C., & Patel, A. C. H. (2012). Sustainable materials with both eyes open. Cambridge: UIT.Google Scholar
- Antoniades, A. (2013). Whoops—‘Cash for Clunkers’ Actually Hurt the Environment. Yahoo News. Retrieved March. 15, 2015 from: http://news.yahoo.com/why-cash-clunkers-hurt-environment-more-helped-024848694.html.
- Ashok, K., Pfeifer, G., & Witte, S. (2012). The incidence of cash for clunkers: An analysis of the 2009 car scrappage scheme in Germany. Working Paper No. 68, University of Zurich, Department of Economics, Working Paper Series.Google Scholar
- B.C. (2013). Carbon tax report and plan. June budget update 2013/4 to 2015/6 (pp. 66–68). Tax Measure, British Columbia Legislature, Victoria.Google Scholar
- Buhrow, J., Bierter, W., & Stahel W. R. (1999, November). Lebenskostenanalysen von drei Fahrzeugen über 30/17 Jahre. Studie zu den Auswirkungen einer Nutzungsdauerverlängerung von Gütern auf die Kosten für Arbeit, Ersatzteile und Beschaffung. Retrieved March 15, 2015, from http://product-life.org/de/archive/case-studies/langzeit-kostenanalyse-von-fahrzeugen-pkw-und-lkw
- Clift, R. (2001). Clean technology and industrial ecology. In R. M. Harrison (Ed.), Pollution – Causes, effects and control (pp. 411–444). London: Royal Society of Chemistry.Google Scholar
- Clift, R., & Allwood, J. (2011, March). Rethinking the economy. The Chemical Engineer, pp. 30–31.Google Scholar
- Clift, R., Basson, L., & Cobbledick, D. (2009, September). Accounting for carbon. The Chemical Engineer, pp. 35–37.Google Scholar
- Club of Rome. (2015). Societal benefits of a more resource-efficient circular economy—The case of Sweden – What could be achieved until the year 2030? To be published.Google Scholar
- Coulmas, F. (2012). Lernen, nur nicht aufhören zu lernen. Neue Zürcher Zeitung. Retrieved March 15, 2015, from http://www.nzz.ch/aktuell/feuilleton/uebersicht/lernen-nur-nicht-aufhoeren-zu-lernen-1.16973270
- Elgie, S., & Clay, J. A. (2013). BC’s carbon tax shift after five years: Results. Ottawa: University of Ottawa.Google Scholar
- EU. (2008). Directive 2008/98/EC on waste (Waste Framework Directive). Retrieved March 15, 2015, from http://ec.europa.eu/environment/waste/framework
- Forum for the Future. (2015). The five capitals. Retrieved March 15, 2015, from http://www.forumforthefuture.org/project/five-capitals/overview
- Göttsching, L., & Pakarinen, H. (Eds.). (2000). Recycled fiber and deinking. Papermaking science and technology series, Book no. 7. Helsinki: Finnish Paper Engineers Association/TAPPI, Fapet Oy.Google Scholar
- IPCC (Intergovernmental Panel on Climate Change). (2014). 5th assessment report, Working Group III, Chapter 10, United Nations, p. 746.Google Scholar
- Jackson, T. (2009). Prosperity without growth: Economics for a finite planet. London: Earthscan/Routledge.Google Scholar
- Kaya, Y. (1990). Impact of carbon dioxide emission control on GNP growth: Interpretation of proposed scenarios. IPCC Energy and Industry Subgroup. Response Strategies Working Group, Paris.Google Scholar
- Levy, J. C., & Aurez, V. (2014). L’économie circulaire: un désir ardent des territoires. Paris: Transition écologique, Presses des Ponts.Google Scholar
- OECD. (2015b). Due diligence guidance for responsible supply chains of minerals from conflict-affected and high-risk areas. Retrieved March 15, 2015, from http://www.oecd.org/corporate/mne/mining.htm
- Pisano, G. P., & Shih, W. C. (2012). Producing prosperity: Why America needs a manufacturing renaissance. Boston: Harvard Business Review Press.Google Scholar
- Product-Life Institute. (2015). Performance sustainability rating of sectors. Retrieved March 15, 2015, from http://product-life.org/en/major-publications/performance-economy
- Stahel, W. R. (1995). Handbuch Abfall 1, Allgemeine Kreislauf- und Rückstandswirtschaft—intelligente Produktionsweisen und Nutzungskonzepte. Landesanstalt für Umweltschutz Baden-Württemberg.Google Scholar
- Stahel, W. R., & Reday-Mulvey, G. (1976). The potential for substituting manpower for energy: A report to the European Commission. Subsequently published as Jobs for tomorrow. New York: Vantage Press (1981).Google Scholar
- UN (2013). Minamata convention on mercury. Retrieved March 15, 2015, from http://www.cbc.ca/news/world/un-treaty-to-limit-mercury-emissions-signed-by-140-countries-1.1405350
- US SEC (2012). New rules and an amendment to a new form pursuant to Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act relating to disclosure of payments by resource extraction issuers. Retrieved March 15, 2015, from http://www.sec.gov/rules/final/2012/34-67717.pdf
- WEF. (2015). Licence to mine, making resource wealth work for those who need it most. World Economic Forum, to be published.Google Scholar
Open Access This chapter is distributed under the terms of the Creative Commons Attribution Noncommercial License, which permits any noncommercial use, distribution, and reproduction in any medium, provided the original author(s) and source are credited.