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Exploiting the Potential of Public Procurement: Opportunities for Circular Economy
Abstract
Summary: The objective of a circular economy (CE) is to maintain the value of products, materials, and resources in the economy by closing material loops and minimizing waste generation. In recent years, the role of public procurement has been recognized as an important, but as yet not fully exploited, opportunity by cities and municipalities in their transition toward circular societies. This study analyzed public procurement opportunities to promote CE. Different approaches and examples of circular public procurement were identified using case studies. In addition, opportunities to promote CE through sustainable and green public procurement policy were identified analyzing predefined sustainable or green public procurement criteria. The study concludes that public procurement can promote CE and related business models by setting criteria and requirements for the extension of product life spans, efficiency and/or intensity of use, and efficient cycling of biological or technical materials, as well as for the securing of clean and nonrisky cycles. Circular procurement can occur through the procurement of better‐quality products in circular terms, the procurement of new circular products, the use of business concepts that support the CE, and investments in circular ecosystems. Several sectors and product groups were identified as having potential for circular procurement, such as construction, waste, and wastewater management, transportation, food, and catering, furniture, and textiles. The study also suggests that the use of certain tools, such as performance‐based procurement, life cycle approach, and life cycle costing, as well as criteria concerning reuse and recycling of materials, could promote circular procurement. Market dialogue and cooperation between procurers and actors in the supply chains are important for the future development of circular procurement.
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In the citing paper
“public authorities are essential to implementing the circular economy and achieving national sustainability goals, and thus can lead this transition process (European Commission, 2017b;Alhola et al., 2019;Ntsondé and Aggeri, 2021;Government Offices of Sweden, 2022).”
From Implementation and management of a circular public procurement contract for furniture (2023) · cites this paper as Alhola et al., 2019
In the citing paper
“procurement is stated to be strategically important for circular solutions (Alhola et al., 2019;Farooque et al., 2019).”
From Implementation and management of a circular public procurement contract for furniture (2023) · cites this paper as Alhola et al., 2019
In the citing paper
“There are a few studies on the potential of CPP for furniture (Alhola et al., 2019;Öhgren et al., 2019;Kristensen et al., 2021)”
From Implementation and management of a circular public procurement contract for furniture (2023) · cites this paper as Alhola et al., 2019
In the citing paper
“Studies of CPP often focus on the drivers of, and barriers to, the implementation of this policy tool (Alhola et al., 2019;Kristensen et al., 2021;Lingegård et al., 2021a).”
From Implementation and management of a circular public procurement contract for furniture (2023) · cites this paper as Alhola et al., 2019
In the citing paper
“Previous CPP studies on furniture include conceptual studies of CPP's potential (Öhgren et al., 2019), analyses of the tendering process (Ntsondé and Aggeri, 2021), and overviews of CPP implemented on a smaller scale (Alhola et al., 2019;Kristensen et al., 2021).”
From Implementation and management of a circular public procurement contract for furniture (2023) · cites this paper as Alhola et al., 2019
In the citing paper
“Public procurement is a policy tool for promoting more socially and ecologically sound production and consumption (Commission of the European Communities, 2008; UNEP, 2014; Alhola et al., 2019), and CPP has in recent years gained more attention.”
From Implementation and management of a circular public procurement contract for furniture (2023) · cites this paper as Alhola et al., 2019
In the citing paper
“Public organizations are thought to lead sustainability and circularity by example (Commission of the European Communities, 2008;Alhola et al., 2019)”
From Implementation and management of a circular public procurement contract for furniture (2023) · cites this paper as Alhola et al., 2019
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Metadata
- Authors
- Alhola, K., Ryding, S. O., Salmenperä, H., & Busch, N. J.
- Affiliations
- Finnish Environment Institute (FI)
- IVL Swedish Environmental Research Institute (CN)
- Copenhagen Resource Institute (NIRAS) Copenhagen Denmark
- Corresponding author
- Alhola, Katriina
- Venue
- Journal of Industrial Ecology
- Published
- 2018-05-15
- Volume
- 23
- Issue
- 1
- Pages
- 96-109
- ISSN
- 1088-1980 (ISSN-L)
- 1530-9290
- OpenAlex
- W2804613968
- Cited by
- 284
- References
- 51
- Citations by year
- 2026: 41 · 2025: 45 · 2024: 53 · 2023: 39 · 2022: 48 · 2021: 35 · 2020: 18 · 2019: 5
- FWCI
- 24.23
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Industrial Ecology (publishedVersion)
- Funders
- Nordisk Ministerråd (1)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Public Procurement and Policy
- Social Sciences › Business, Management and Accounting › Strategy and Management › Sustainable Supply Chain Management
- Physical Sciences › Engineering › Building and Construction › Sustainable Design and Development
- Keywords
- circular economy, circular public procurement, green public procurement, sustainable public procurement, procurement criteria, product life extension, material reuse and recycling, performance-based procurement, life cycle cost analysis, life cycle approach, circular business models, circular ecosystems, municipal procurement, construction industry, waste management, wastewater management, transportation, supply chain collaboration
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