Economy and Its Symbiosis with Circularity

Abstract

The risks of harming the future of humanity through the several negative impacts on the environment generated by the linear economy are already been verified, both academically and professionally. It is essential to convert the linear production into circular, providing the possibility of achieving net sustainability. The state of the art of Economy has been modeling itself into a sustainable umbrella concept, which must be used to generate wealth and protect the environment. Economy and Circularity are aspects of social relationship that have been together since the beginning on macro, meso and micro-levels. This study has created an analysis tool for the Circular Economy based on the economic analysis tool of the IS-LM curves. This tool makes it possible to identify the Sustainability Margin Point, from the intersection between the curves of Governmental Protective Measures and Protective Postures of Citizens and Governments. Such analysis allows a better understanding and planning of the actions of each of the economic agents: citizens, companies, and governments.