Advancing environmental assessment of the circular economy: Challenges and opportunities

Abstract

The lifecycle assessment (LCA) framework is widely applied to comprehensively evaluate and improve the environmental performance of a circular economy (CE). The advances and application of LCA has been primarily restricted to evaluate the environmental performance of the CE at a micro-level, wherein the CE is implemented for a single product system.

However, the CE can be operationalized at two broader levels: the meso–level (for eco-industrial parks) and the macro-level (for a city, state, or nation). Six methodological challenges emerge when applying LCA to a meso‑ or macro-level CE and remain unaddressed in the existing literature. This includes: selecting a relevant system boundary and functional unit, addressing data paucity and uncertainty, accounting for stakeholder behavior, assessing the trade-offs from renewable energy (RE) use, accounting for manufacturing and technology evolution, and quantifying displacement and rebound. This article proposes potential solutions and research priorities to address the above challenges.