Conceptualizing circular economy policy instruments: The case of recycled content standards

Abstract

Recycled content standards (RCSs) are an increasingly popular regulatory policy instrument requiring recycled materials in new products, thus aiming to close material loops. Public policy can boost the implementation of a circular economy (CE), but the relationship between individual policy instruments such as RCSs and CE needs more research. In this study, we reviewed 62 RCS policies in 30 jurisdictions and 19 scientific articles on RCSs. Our analysis has shown a new wave of increasingly stringent RCSs in multiple jurisdictions worldwide since 2018, primarily for packaging plastics and targeting CE goals. Based on our RCS study, we developed a conceptual framework for CE policy instruments with three main results. First, CE policy instruments have crucial characteristics, including feasibility, design, and administration. Second, they target the economic, environmental, and social pillars of sustainable development. Third, they have potential systemic effects at multiple abstraction levels. Our framework can be used by researchers, policymakers, and industry practitioners to understand how policy instruments contribute to CE but may have unforeseen consequences. Thus, our study guides effective CE policymaking and recommends investigating comprehensive CE policy mixes.