<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Circular economy (CE) is an interesting approach by many countries to address global environmental problems while gaining economic benefits. The implementation of CE is expected to minimize the use of resources and materials, thus contributing to sustainable development. Much literature has discussed CE assessment indicators and their evaluation, however to date, no single indicator has been proposed that can comprehensively measure the macro level of CE implementation. This study aims to develop a CE index to measure CE implementation at macro levels. In addition, it provides an overview of the impact of CE implementation on the financial, social, and environmental aspects of the economy. To this end, first, an in-depth literature review and descriptive analysis is conducted to identify existing global CE indicators and classify them into financial, social, and environmental categories based on available primary and secondary data. Then, the CE index is constructed using a mathematical equation by considering the CE framework, a single indicator of each aspect as a variable, and the variable’s weighting. Finally, the CE index is applied to evaluate the level of CE implementation of CE in Indonesia at macro level. This index is expected to be a valuable tool for measuring CE implementation and therefore improving CE performance.</p>
</abstract>

Circular economy (CE) is an interesting approach by many countries to address global environmental problems while gaining economic benefits. The implementation of CE is expected to minimize the use of resources and materials, thus contributing to sustainable development. Much literature has discussed CE assessment indicators and their evaluation, however to date, no single indicator has been proposed that can comprehensively measure the macro level of CE implementation. This study aims to develop a CE index to measure CE implementation at macro levels. In addition, it provides an overview of the impact of CE implementation on the financial, social, and environmental aspects of the economy. To this end, first, an in-depth literature review and descriptive analysis is conducted to identify existing global CE indicators and classify them into financial, social, and environmental categories based on available primary and secondary data. Then, the CE index is constructed using a mathematical equation by considering the CE framework, a single indicator of each aspect as a variable, and the variable’s weighting. Finally, the CE index is applied to evaluate the level of CE implementation of CE in Indonesia at macro level. This index is expected to be a valuable tool for measuring CE implementation and therefore improving CE performance.

Developing a Circular Economy Index to Measure the Macro Level of Circular Economy Implementation in Indonesia

Management Systems in Production Engineering

This work is licensed under the Creative Commons Attribution 4.0 International License.

Circular economy (CE) is an interesting approach by many countries to address global environmental problems while gaining economic benefits. The implementation...

Developing a Circular Economy Index to Measure the Macro Level of Circular Economy Implementation in Indonesia

Data publikacji: 03 maj 2023

Zakres stron: 208 - 215

Otrzymano: 01 lis 2022

Przyjęty: 01 kwi 2023

DOI: https://doi.org/10.2478/mspe-2023-0022

© 2023 Siti Afiani Musyarofah et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.