Implementing China’s circular economy concept at the regional level: A review of progress in Dalian, China

Abstract

The circular economy (CE) concept was introduced in China to address environmental degradation and resource scarcity associated with rapid economic development. Chosen as a demonstration city, Dalian has implemented the CE strategy as a means of conserving water, materials, energy and land. This paper outlines some of the regional CE initiatives that have been successful to date in Dalian, including those focusing on conserving energy and water resources and others focusing on reduced industrial emissions. The paper details the approach used in implementing the CE concept in Dalian, tracing the foci and goals of the program, and the sectoral approach used to implement a CE. Although Dalian municipality has achieved many successes in implementing a CE, our paper identifies several challenges that, until recently, have held back complete implementation. These include: the lack of incentives for older industries to 'green' their operations, the lack of financial support to expand the CE concept, and a broad-based need for heightened public awareness and participation in CE initiatives. Our paper then identifies several responses by Dalian municipality to overcome these challenges, including pricing and tax reforms that serve as conservation incentives, the provision of financial support for CE promotion through budget reorganization, and the organization of CE training programs. Our paper concludes that, although CE initiatives have been successful in Dalian, more is possible and more is needed before Dalian can be designated a true 'eco-city'. The approach used by Dalian can provide guidance for other Chinese cities, although it is recognized that each city must tailor its own approach for differing contexts and conditions.