Companies must assess both the financial and environmental feasibility of remanufacturing before jumping into the circular economy.
The concept of the circular economy, most recently popularised by the Ellen MacArthur Foundation, was first raised by David Pearce and Kerry Turner, two British environmental economists. They pointed out in their book, Economics of Natural Resources and the Environment, that the open-ended economy had no built-in tendency to recycle and effectively treated the environment as a waste “reservoir”. The “take, make, dispose” economic model, explains the Ellen MacArthur Foundation, is reaching its limits.
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