Circular Economy as a Strategic Paradigm: Integrating Policy, Technology, and Social Systems

Abstract

The Circular Economy (CE) is a transformative model that decouples growth from resource depletion and pollution by designing waste out of the economic system. This revised study deepens the Policy–Technology–Social (PTS) framework to reconceptualize CE as an adaptive, socio-technical regime co-evolving across multiple levels. Drawing on extensive literature (2017–2025) and recent empirical findings, it highlights how robust governance, Industry 4.0 technologies, and inclusive social innovations must align to accelerate sustainable transitions (Garg et al., 2025; Carreño-Ortiz et al., 2025). We emphasize that emerging “CE 5.0” models leverage digitalization (AI, IoT, blockchain) for transparency and resource optimization[1][2]. However, risks of technocracy and equity gaps persist without community engagement (Dhayal et al., 2025; Carreño-Ortiz et al., 2025). This paper refines the PTS model by incorporating these insights and linking CE to the SDGs and systems theory, providing a holistic roadmap. It outlines actionable policy measures (e.g. EU Circular Economy Act, China’s CE targets) and organizational strategies (circular business models, skills development) for enabling circular innovation. By advancing a multi-disciplinary lens, the study contributes to theory and practice, guiding researchers and practitioners in designing regenerative, inclusive, and technology-enabled economies.

Keywords: Strategic Paradigm, Circular Economy, Global Challenges

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