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Development and application of a composite circularity index.

Susana Garrido1, José Rodríguez-Antón2, Carla A F Amado3

  • 1Univ Coimbra, CeBER, Faculty of Economics, Av Dias da Silva 165, 3004-512, Coimbra, Portugal.

Journal of Environmental Management
|March 26, 2023
PubMed
Summary
This summary is machine-generated.

This study introduces a composite circularity index (CI) to measure circular economy (CE) practices. The index helps identify best practices and targets for improvement in sectors like the hotel industry.

Keywords:
Benefit of the doubtCircular economyData envelopment analysisHotelsSurvey

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Area of Science:

  • Environmental Science
  • Economics
  • Industrial Engineering

Background:

  • Resource depletion and pollution necessitate sustainable practices like the Circular Economy (CE).
  • Assessing CE implementation requires robust, multi-indicator frameworks.
  • The hotel industry faces unique challenges in adopting circular economy principles.

Approach:

  • Proposes a novel composite circularity index (CI) using a 'Benefit of the Doubt' model.
  • Integrates multiple circularity indicators for diverse operational units within a sector.
  • Employs mathematical programming and Data Envelopment Analysis (DEA) concepts for index computation.

Key Points:

  • The CI effectively combines ordinal and cardinal performance measures, considering both relative and absolute performance.
  • Indicator selection is grounded in the Circular Economy Action Plan and a comprehensive literature review.
  • The model is applied to analyze CE practices in Portuguese and Spanish hotels.

Conclusions:

  • The CI identifies high and low performers in CE implementation within the hotel sector.
  • It provides specific benchmarks and actionable targets for improving circularity levels.
  • This framework offers a valuable tool for advancing sustainable business practices across industries.