The Dark Side of Circularity Transformation

While the transformation towards circularity is widely perceived as a sustainable alternative to linear systems, it also presents new challenges. Creating awareness of the possible negative (and unintended) consequences of circularity is crucial to overcome them and ensure the dark side does not overshadow the positive effects. In this study, we first dive into the space of potential negative outcomes on various levels. A narrative screening of literature from various sources points to a variety of challenges, including rebound effects in which resource efficiency leads to increased consumption, negative environmental impacts of reuse, unintended ecological effects of digital technologies and data, as well as changes in power asymmetries and dependencies in networks established for implementing the circular economy. By consolidating these critical perspectives, this paper contributes to a more nuanced understanding of the circularity discourse and paves the ground for building approaches capable of managing such situations.