Keywords
institutional economics
circular economy
circular transition
consumer behaviour
How to Cite
Abstract
The paper adopts a perspective of institutional economics rarely used in environmental issues and aims to identify and evaluate informal institutions determining the transition towards the circular economy. Without informal institutions supporting changes, formal regulations will not serve their purpose well and will not achieve the intended objectives. The identified informal institutions comprise recognition of environmental problems, belief in the environmental impact of one's actions, willingness to make an effort to close cycles, and trust in the reliability of other actors’ environmental commitment. Consumers are the ultimate product and service users, and their attitudes significantly determine the circular transition, so the CAWI survey was conducted among them. The results indicate that the identified informal institutions do not support circular transitions sufficiently. Significant changes in informal institutions are required to support the transition.
References
Aoki, M. (2001). Toward a comparative institutional analysis. The MIT Press.
ARC Rynek i Opinia. (2019). Raport z badania: Konsumenci a gospodarka obiegu zamkniętego. https://odpowiedzialnybiznes.pl/publikacje/raport-z-badania-konsumenci-a-gospodarka-obiegu-zamknietego/ (in Polish).
Aron, J. (2000). Growth and Institutions: A Review of the Evidence. World Bank Research Observer, 15(1), 99-135. https://doi.org/10.1093/wbro/15.1.99
Arranz, C. F. A., Sena, V., & Kwong, C. (2022). Institutional pressures as drivers of circular economy in firms: A machine learning approach. Journal of Cleaner Production, 355, 1-13. https://doi.org/10.1016/j.jclepro.2022.131738
Bartoszczuk, P. (2023). Circular economy and its restriction. Economics and Environment, 86(3), 469-482. http://dx.doi.org/10.34659/eis.2023.86.3.650
Bentkowska, K. (2021). Response to governmental COVID-19 restrictions: the role of informal institutions. Journal of Institutional Economics, 17(5), 729-745. https://doi.org/10.1017/S174413742100028X
Bocken, N. M. P., de Pauw, I., Bakker, C., & van der Grinten, B. (2016). Product Design and Business Model Strategies for a Circular Economy. Journal of Industrial and Production Engineering, 33(5), 308-320. https://doi.org/10.1080/21681015.2016.1172124
Boettke, P. J., Coyne, Ch., & Leeson, P. T. (2008). Institutional Stickiness and the New Development Economics. American Journal of Economics and Sociology, 67(2), 331-358. https://doi.org/10.1111/j.1536-7150.2008.00573.x
Arranz, C. F. A., Sena, V., & Kwong, C. (2022). Institutional pressures as drivers of circular economy in firms: A machine learning approach. Journal of Cleaner Production, 355, 1-13. https://doi.org/10.1016/j.jclepro.2022.131738
Casson, M. C., Della Giusta, M., & Kambhampati, U. S. (2010). Formal and Informal Institutions and Development. World Development, 38(2), 137-141. https://doi.org/10.1016/j.worlddev.2009.10.008
CBOS. (2020). Świadomość ekologiczna Polaków. Komunikat z badań nr 163. https://www.cbos.pl/SPISKOM.POL/2020/K_163_20.PDF
Chavance, B. (2008). Formal and Informal Institutional Change: The Experience of Post socialist Transformation. European Journal of Comparative Economics, 5(1), 57-71. https://ejce.liuc.it/18242979200801/182429792008050103.pdf
Chong, A., & Gradstein, M. (2019). Institutional Persistence, Income Inequality, and Individual Attitudes. Journal of Economic Inequality, 17(3), 401-413. https://doi.org/10.1007/s10888-019-09414-w
Chung, K. H., & Kim, D. (2021). Explaining Asian growth paradox through interaction between informal and formal institutions. Asian Education and Development Studies, 10(4), 600-614. https://doi.org/10.1108/AEDS-10-2020-0235
Ciechelska, A., Kusterka-Jefmańska, M., & Zaremba-Warnke, S. (2022). Municipal waste management as a polycentric system –the example of Poland. Economics and Environment, 83(4), 76-90. https://doi.org/10.34659/eis.2022.83.4.541
Cruz-García, P., & Peiró-Palomino, J. (2019). Informal, Formal Institutions and Credit: Complements or Substitutes? Journal of Institutional Economics, 15(4), 649-671. https://doi.org/10.1017/s1744137419000018
Cunningham, C., & Dibooglu, S. (2020). Engines of Growth in China: The Limits of Informal Institutions. Journal of Economic Issues, 54(1), 252-275. https://doi.org/10.1080/00213624.2020.1721978
Deloitte. (2021). Climate Sentiment Index Deloitte. https://www2.deloitte.com/pl/pl/pages/press-releases/articles/ponad-polowa-polakow-poparlaby-regulacje-majace-wplyw-na-zlagodzenie-skutkow-zmian-klimatu.html (in Polish).
Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting, Pub. L. No. 32022L2464, 322 OJ L (2022). https://eur-lex.europa.eu/legal-content/PL/TXT/?uri=CELEX%3A32022L2464 (in Polish).
Eggertsson, T. (2006). On the Survival of Imperfect Institutions. Revista de Analisis Economico, 21(2), 13-24. https://ideas.repec.org/a/ila/anaeco/v21y2006i2p13-24.html
Ellen MacArthur Foundation. (2012). Towards a Circular Economy. https://www.ellenmacarthurfoundation.org/towards-the-circular-economy-vol-1-an-economic-and-business-rationale-for-an
ELOPAK. (2023). Research White Paper: The role of packaging and brands in consumer’s environmental journey. https://www.elopak.com/app/uploads/2023/12/Consumer-research-2023-white-paper.pdf
European Commission. (2014). Communication from European Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, Towards a circular economy: A zero waste programme for Europe, Pub. L. No. 52014DC0398. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A52014DC0398
European Commission. (2018). Behavioural Study on Consumers’ Engagement in the Circular Economy. Final Report. https://commission.europa.eu/system/files/2018-10/ec_circular_economy_final_report_annex.pdf
European Commission. (2019). Communication from European Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, The European Green Deal, Pub. L. No. 52019DC0640. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2019%3A640%3AFIN
European Commission. (2020a). Communication from European Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, A new Circular Economy Action Plan For a cleaner and more competitive Europe, Pub. L. No. 52020DC0098. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2020%3A98%3AFIN
European Commission. (2020b). Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, A New Industrial Strategy For Europe, Pub. L. No. 52020DC0102. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52020DC0102
European Commission. (2023). Special Eurobarometer Climate Change 538. Report. https://europa.eu/eurobarometer/surveys/detail/2954
European Parliament. (2023). Circular economy: definition, importance and benefits. https://www.europarl.europa.eu/news/en/headlines/economy/20151201STO05603/circular-economy-definition-importance-and-benefits
Forum Odpowiedzialnego Biznesu. (2019). Raport z badania Konsumenci a gospodarka obiegu zamkniętego. https://odpowiedzialnybiznes.pl/wp-content/uploads/2019/10/Raport_CSR_ARC-FOB.pdf (in Polish).
Frølund, C. (2021). Institutions, uncertainty, and entrepreneurial judgment. Journal of Institutional Economics, 17(6), 913-923. https://doi.org/10.1017/S1744137421000485
Fundacja Circular Poland. (2021). Raport GO!Z 2021. Polska droga do cyrkularności. http://circularpoland.org/badanie-goz (in Polish).
Geissdoerfer, M. P., Savaget, N., Bocken, M. P., & Hultink, E. J. (2017). The Circular Economy – A new sustainability paradigm? Journal of Cleaner Production, 143, 757-768. https://doi.org/10.1016/j.jclepro.2016.12.048
Glaeser, E. L., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2004). Do Institutions Cause Growth? Journal of Economic Growth, 9(3), 271-303. https://doi.org/10.1023/B:JOEG.0000038933.16398.ed
Helmke, G., & Levitsky, S. (2004). Informal Institutions and Comparative Politics: A Research Agenda. Perspectives on Politics, 2(4), 725-740. https://doi.org/10.1017/S1537592704040472
Homrich, A. S., Galvao, G., Abadia, L. G., & Carvalho, M. M. (2018). The circular economy umbrella: Trends and gaps on integrating pathways. Journal of Cleaner Production, 175, 525-543. https://doi.org/10.1016/j.jclepro.2017.11.064
Interzo. (2024). Między plusem a minusem. Raport z badania - Co Polacy wiedzą o bateriach i jak sobie radzą z ich segregacją. https://interzero.pl/blog/nowy-raport-miedzy-plusem-a-minusem/ (in Polish).
Kingston, C., & Caballero, G. (2009). Comparing theories of institutional change. Journal of Institutional Economics, 5(2), 151-180. https://doi.org/10.1017/S1744137409001283
Knack, S., & Keefer, P. (1997). Does Social Capital Have an Economic Payoff? A Cross-Country Investigation. Quarterly Journal of Economics, 112(4), 1251-1288. https://doi.org/10.1162/003355300555475
Korhonen, J., Nuur, C., Feldmann, A., & Birkie, S. E. (2018). Circular economy as an essentially contested concept. Journal of Cleaner Production, 175, 544-552. https://doi.org/10.1016/j.jclepro.2017.12.111
Leković, V. (2011). Interaction of Formal and Informal Institutions – Impact on Economic Success. Facta universitatis - series: Economics and Organization, 8(4), 357-370. http://scindeks.ceon.rs/article.aspx?query=ARTAK%26and%26Institucije%26FLTJOU%26and%260354-4699&page=7&sort=1&stype=0&backurl=%2FSearchResults.aspx%3Fquery%3DARTAK%2526and%2526Institucije%2526FLTJOU%2526and%25260354-4699%26lang%3Den&lang=en
Lieder, M., & Rashid, A. (2016). Towards circular economy implementation: a comprehensive review in context of manufacturing industry. Journal of Cleaner Production, 115, 36-51. https://doi.org/10.1016/j.jclepro.2015.12.042
Lipsey, R. (2009). Economic growth related to mutually interdependent institutions and technology. Journal of Institutional Economics, 5(3), 259-288. https://doi.org/10.1017/S1744137409990014
Lovins, L. H., Wallis, S., Wijkman, A., & Fullerton, J. (2018). A Finer Future: Creating an Economy in Service to Life. Canada: New Society Publishers.
Milios, L. (2018). Advancing to a Circular Economy: three essential ingredients for a comprehensive policy mix. Sustainability Science, 13, 861-878. https://doi.org/10.1007/s11625-017-0502-9
Ministerstwo Klimatu i Środowiska. (2022). Badanie świadomości ekologicznej mieszkańców Polski. https://www.gov.pl/web/edukacja-ekologiczna/badania-swiadomosci-ekologicznej (in Polish).
Mintel Consulting. (2022). Sustainability Barometer. Executive Summary. https://www.mintel.com/press-centre/mintel-consulting-2022-sustainability-barometer/
Mobile Institute. (2021). Green Generation. Wspólnie na rzecz ziemi. https://mobileinstitute.eu/green (in Polish).
Moraga, G., Huysveld, S., Mathieux, F., Blengini, G. A., Alaerts, L., van Acker, K., de Meester, S., & Dewulf, J. (2019). Circular economy indicators: What do they measure? Resources, Conservation and Recycling, 146, 452-146. https://doi.org/10.1016/j.resconrec.2019.03.045
Muringani, J. (2022). Trust as a catalyst for regional growth in a decentralised Europe: The interplay between informal and formal institutions in driving economic growth. Journal of Regional Science, 62(5), 1229-1249. https://doi.org/10.1111/jors.12594
Murray, A., Skene, K., & Haynes, K. (2017). The circular economy: an interdisciplinary exploration of the concept and application in a global context. Journal of Business Ethics, 140(3), 369-380. https://doi.org/10.1007/s10551-015-2693-2
Niekurzak, M., Brelik, A., & Lewicki, W. (2023). Economic potential of recovery and recycling of silicone photovoltaics cells and non-ferrous metals as part of the transition towards a circular economy. Economics and Environment, 86(3), 202-224. https://doi.org/10.34659/eis.2023.86.3.600
North, D. C. (1994). Institutions, institutional change and economic performance. Cambridge: Cambridge University Press.
Nowicka, K. (2022). Gospodarka o obiegu zamkniętym. In K. Nowicka (Ed.), Gospodarka o obiegu zamkniętym. Część I - przedsiębiorstwo, instytucje, miasto (pp. 15-51). Warszawa: Oficyna SGH. (in Polish).
Ostrom, E. (2010). Polycentric systems for coping with collective action and global environmental change. Global Environmental Change, 20(4), 550-557. https://doi.org/10.1016/j.gloenvcha.2010.07.004
Ostrom, E. (2014). A Polycentric Approach for Coping with Climate Change. Annals of Economics and Finance, 15(1), 97-134. http://aeconf.com/articles/may2014/aef150103.pdf
Paniagua, P., & Rayamajhee, V. (2022). A polycentric approach for pandemic governance: nested externalities and co-production challenges. Journal of Institutional Economics, 18(4), 537-552. https://doi.org/10.1017/S1744137421000795
Park, S. M. (2023). Domestic formal and informal institutions: their substitutability and comparative advantage. Review of World Economics, 159(4), 853-886. https://doi.org/10.1007/s10290-022-00483-0
PARP. (2020). Ocena zapotrzebowania na wsparcie przedsiębiorstw w zakresie gospodarki o obiegu zamkniętym (circular economy). Raport końcowy. https://www.parp.gov.pl/storage/publications/pdf/Raport-kocowy_Ocena-zapotrzebowania-na-wsparcie-przedsibiorstw-w-zakresie-gospodarki-o-obiegu-zamknitym-circular-economy_WCAG.pdf (in Polish).
Pejovich, S. (1999). The Effects of the Interaction of Formal and Informal Institutions on Social Stability and Economic Development. Journal of Markets & Morality, 2(2), 164181. https://doi.org/10.4337/9781847200167.00012
Prieto-Sandoval, V., Jaca, C., & Ormazabal, M. (2018). Towards a Consensus on the Circular Economy. Journal of Cleaner Production, 179, 605-615. https://doi.org/10.1016/j.jclepro.2017.12.224
Rayamajhee, V., March, R. J., & Clark, C. C. T. (2024). Shock me like a Hurricane: how Hurricane Katrina changed Louisiana's formal and informal institutions. Journal of Institutional Economics, 20e2, 1-20. http://dx.doi.org/10.1017/S1744137423000267
Roggero, M., Villamayor-Tomas, S., Oberlack, C., Eisenack, K., Bisaro, A., Hinkel, J., & Thiel, A. (2018). Introduction to the special issue on adapting institutions to climate change. Journal of Institutional Economics, 14(3), 409-422. https://doi.org/10.1017/S1744137417000649
Roland, G. (2004). Understanding institutional change: Fast-moving and slow-moving institutions. Studies in Comparative International Development, 38(4), 109-131. https://doi.org/10.1007/BF02686330
Sadura, P., Bieńkowska, Z., & Drygas, P. (2021). Nie nasza wina, nie nasz problem. Warszawa: Fundacja im. Heinricha Bölla w Warszawie. (in Polish).
Seligson, D., & McCants, A. (2021). Coevolving institutions and the paradox of informal constraints. Journal of Institutional Economics, 17(3), 359-378. https://doi.org/10.1017/S1744137420000600
Smith, A., & Brownlow, G. (2022). Informal Institutions as Inhibitors of Rent-Seeking Entrepreneurship: Evidence From U.S. Legal History. Entrepreneurship Theory and Practice, 47(6), 2323-2346. https://doi.org/10.1177/10422587221134926
Stahel, W. R. (2019). Circular Economy: A User's Guide. New York: Routledge Taylor & Francis Group.
Storr, V. H., Haeffele, S., Grube, L. E., & Lofthouse, J. K. (2021). Crisis as a source of social capital: Adaptation and Formation of Social Capital during the COVID-19 Pandemic. Cosmos + Taxis, 9(5/6), 94-108. https://cosmosandtaxis.org/wp-content/uploads/2021/05/storr_et_al_ct_vol9_iss_5_6.pdf
Szilagyi, A., Cioca, L. I., Bacali, L., Lakatos, E. S., & Birgovan, A. L. (2022). Consumers in the Circular Economy: A Path Analysis of the Underlying Factors of Purchasing Behaviour. International Journal of Environmental Research and Public Health, 19(18), 11333. https://doi.org/10.3390/ijerph191811333
Tabellini, G. (2010). Culture and Institutions: Economic Development in the Regions of Europe. Journal of the European Economic Association, 8(4), 677-716. https://doi.org/10.2139/ssrn.754086
Tourlioti, P. N., Portman, E., Pantelakis, I., & Tzoraki, O. (2024). Awareness and willingness to engage in climate change adaptation and mitigation: Results from a survey of Mediterranean islanders (Lesvos, Greece). Climate Services, 33, 1-12. https://doi.org/10.1016/j.cliser.2023.100427
Webster, K. (2017). The Circular Economy: A Wealth of Flows - 2nd Edition. Ellen MacArthur Foundation Publishing.
Williamson, C. R. (2009). Informal Institutions Rule: Institutional Arrangements and Economic Performance. Public Choice, 139(3/4), 371-387. https://doi.org/10.1007/s11127-009-9399-x
Williamson, C. R., & Kerekes, C. B. (2011). Securing Private Property: Formal versus Informal Institutions. Journal of Law & Economics, 54(3), 537-572. https://doi.org/10.1086/658493
Williamson, O. E. (2000). The New Institutional Economics Taking Stock Looking Ahead. Journal of Economic Literature, 38(3), 595-613. https://doi.org/10.1257/jel.38.3.595
Wojtach, A. (2016). Ecosystem services in the circular economy. Economics and Environment, 59(4), 99-108. https://www.ekonomiaisrodowisko.pl/journal/article/view/203
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Copyright (c) 2024 Economics and Environment