Triguero, Á., Moreno‐Mondéjar, L., & Sáez‐Martínez, F. J. (2023). Circular economy and firm performance: The influence of product life cycle analysis, upcycling, and redesign. Sustainable Development.

https://doi.org/10.1002/sd.2509

Resumen:

The transition toward a circular economy (CE) implies the introduction of innovative practices at the firm level. Nevertheless, an important question is under discussion: What are the consequences of these practices on firm performance? Using a survey approach, this article analyzes the effect of CE practices related to product design on economic and environmental performance: life cycle assessment (LCA), product upgradability, and design for disassembly, reuse, and recycling in a sample of 300 firms. Our findings show that, although most of the companies are carrying out some eco-innovation (innovations aimed to reduce the environmental damage of their activity), only process eco-innovations new to the market improve economic performance but not environmental performance. However, LCA is a tool for implementing CE principles, helping to improve both. Eco-design is positively associated with economic performance. The results provide managers and policy makers new insights on the long road to achieving this transition.