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Last edited 24 Mar 2021
Circular Business Models
Uncommon to the business models typical of a linear economy, circular business models describe how, for example, offering services, leasing components and taking back materials are profitable activities. Therefore, the models should identify, in the idea of a circular economy, the cost of those activities and the (market) value of the involved components and materials.
Circular economy: an economic system wherein components are kept at their highest value along their service life and are returned as valuable resources afterwards. It therefore relies on circular business models and careful design (after MacArthur, 2012).
Residual value: the (market) value of a building, parts of a building, or an amount of material at the end of the period of analysis or considered service life. Circular business models allow keeping the residual value at the same level as the initial one.
Renswoude et al. (2015) Circular Business Models – Part 1: An introduction to IMSA’s circular business model scan. Amsterdam: Instituut voor Milieu- en Systeemanalyse Amsterdam.
--BAMB - Buildings As Material Banks 07:55, 15 Aug 2018 (BST)
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