Exploring the spatial dynamics of circular economy transitions: Insights and lessons from Chile's mining territories

Abstract

This paper investigates the spatial dynamics of Circular Economy (CE) transitions in mineral resource-dependent regions. The research addresses a gap in the CE literature’s understanding of the influence of spatial factors in CE transitions, which is dominated by empirical studies of industrialised regions with mature industrial ecosystems. As a result, our current understanding of CE transitions arguably relies heavily on cases with spatial configurations of economic activities characterised by high levels of territorial development and existing industrial agglomerations that exhibit strong linkages. Using Chile’s mining territories as a case study, the paper explores how the unique spatial configurations of resource-dependent regions influence their ability to transition to more circular modes of production. These regions are often characterised by economic enclavism and weak local linkages, which shape their ability to transition to more circular modes of production. Through semi-structured and focus group interviews with industry leaders, policymakers, and academics, the study identifies three distinct spatial dimensions that impact regions’ ability to adopt CE strategies and practices: (1) the configuration of physical infrastructure and production locations; (2) the prevalent value system and patterns of cooperation; (3) the diversity of regional industrial capabilities and production networks. The study concludes that overcoming spatial and institutional barriers in enclave economies is essential to fostering sustainable industrial ecosystems and accelerating CE transitions. It contributes to the literature on the spatial dimensions of sustainability transitions and advocates for targeted regional development strategies to promote circular practices in resource-dependent areas.