Quantification of consumer-related rebound effects of circular business models

This research will develop a framework combining environmental, behavioural and innovation sciences to better estimate the impact of circular business models, with a focus on rebound effects. Such a framework can inform policy and business decision-making as comparisons between alternatives reflect reality more closely.

Society and policy-makers see the transition to a circular economy (CE) as a crucial step in achieving a sustainable economy. New circular business models are rising, hoping to facilitate a shift towards sustainable consumption patterns. This hope is fueled by the conception that circular resource use leads to a decreased and sustainable use of resources. However, recent research shows that the environmental benefits expected are not always achieved, because of unintended side-effects. These side-effects of circular business models are defined as rebound effects, i.e., behavioural responses that offset the benefits of measures taken to reduce environmental impacts. This research will identify and quantify consumer-related rebound effects of several circular business models and integrate these into environmental assessment tools such as Life Cycle Assessment (LCA). These tools are used for sustainable decision-making, but oversight of rebound effects is one of their main limitations.

This research can create an enormous impact by providing more realistic estimates of the environmental effect of circular business models. The developed framework framework can inform policy and business decision-making as comparisons between alternatives reflect reality more closely. In addition, new insights into the unintended behaviour of consumers will facilitate the design of sustainable circular business models and measures that minimise unsustainable behaviour.

The project is funded by Utrecht University and runs from 2022 to 2026.