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Circular Economy and Industry 4.0

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[Boston, Massachusetts - Forbes]

 

 

- Circular Economy

A circular economy (often referred to simply as "circularity") is an economic system aimed at eliminating waste and the continual use of resources. Circular systems employ reuse, sharing, repair, refurbishment, remanufacturing and recycling to create a closed-loop system, minimising the use of resource inputs and the creation of waste, pollution and carbon emissions. 

The circular economy aims to keep products, equipment and infrastructure in use for longer, thus improving the productivity of these resources. All "waste" should become "food" for another process: either a by-product or recovered resource for another industrial process or as regenerative resources for nature (e.g., compost). This regenerative approach is in contrast to the traditional linear economy, which has a "take, make, dispose" model of production.

 

- Traditional Linear Economy

A linear economy traditionally follows the “take-make-dispose” step-by-step plan. This means that raw materials are collected, and then transformed into products that are used until they are finally discarded as waste. Value is created in this economic system by producing and selling as many products as possible.

A linear economy traditionally follows the “take-make-dispose” step-by-step plan. This means that raw materials are collected, and then transformed into products that are used until they are finally discarded as waste. Value is created in this economic system by producing and selling as many products as possible. 

Raw materials used to make product, after use, culminate in a landfill. In economies based on recycling, such waste materials are reused. An economic model based on the sequence take (raw material), make (products), use (consume), dispose (of non-recyclable waste), which has demonstrated to be unsustainable for both its resources consumption and its environmental impact. 

A traditional economic paradigm that consists of extracting raw materials; transforming them; producing and consuming goods and services; and discarding the resulting waste. The economy where the environment is as a simple natural free resource. The economy where the steps are always the same, collect materials, transform them and use them, without reusing anything. 

A linear economy traditionally follows the “take–make–dispose” step-by-step plan. This means that raw materials are collected and then transformed into products that are used until they are finally discarded as waste. An economy based on ‘take-make-dispose’ is called as linear economy. The approach of linear economy involves the process of collection of raw material for transformation of them into finished goods and distribution until the customer until they are accumulated as waste. Volume of products manufactured is very high in this economy. 

 

 

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