The paradox of the circular economy in the raw materials industry

Abstract

Circular economy has, in the case of some raw materials, its own drawbacks. The principle states that reuse is basic to reduce primary production, thus in a healthy circular economy we should recycle as many elaborated raw materials as possible (in the case of aluminium i.e., tins, window frames, etc). The new products from these sources will then cost less and it appears as if growth could be unlimited as we recycle residues and produce new resources. And statistics should then show that thanks to the new supply from recycling, we will need less raw materials. We are now confronted with the facts that were anticipated by Jevons paradox: an improved efficiency will lower the price of the commodity and because of this; instead of a reduction we see a clear increase in the use of the resource.