PlumX Metrics
Embed PlumX Metrics

COSTS AND FINANCIAL DECISIONS ASSOCIATED WITH THE TRANSITION FROM A LINEAR ECONOMY TO A CIRCULAR ECONOMY IN PACKAGING PRODUCTION: THE CASE OF ECUADOR

Innovar, ISSN: 2248-6968, Vol: 34, Issue: 94
2024
  • 1
    Citations
  • 0
    Usage
  • 7
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

Article Description

Businesses play a critical role in development, production, and consumption. However, their production model generates enormous amounts of plastic waste that are growing exponentially, surpassing the global capacity for waste management and recycling. This traditional model, based on the principles of extraction, production, and disposal, involves unlimited resource use, thus leading to economic and environmental problems. This research focuses on the Ecuadorian context and aims to analyze and compare the costs associated with transitioning from a linear economy to a circular economy in two manufacturing scenarios: (i) flexible polyethylene packaging with virgin material and (ii) a mix of materials, as well as their relationship with financial decisions. Additionally, the study evaluates circularity and eco-efficiency indicators and projects data to assess the impact at the national level. The methodology employed was life cycle costing. The results show that production costs in the linear model exceed those in the circular model by 18%. From an environmental perspective, there is a 46% increase in energy consumption and greater water use resulting from the recycling process. In summary, production using a circular system proves to be more economically and environmentally viable compared to the linear approach.

Bibliographic Details

Maribel Rosero-Rosero; Carlos Clemente Rosero-Rosero; Maribel Pinargote-Yépez

Universidad Nacional de Colombia

Business, Management and Accounting; Social Sciences

Provide Feedback

Have ideas for a new metric? Would you like to see something else here?Let us know