Identifying rebound mechanisms triggered by circular economy business models: demonstration of a practical tool for the early design phases

Despite the potential of circular business models (CEBM) in enabling the transition to Absolute Sustainability, their potential sustainability gains are often offset by rebound effects (RE).
To support the identification of potential RE in the early CEBM design, this work provides a practical tool that conceptually associates the dynamics between CEBM patterns and rebound mechanisms. The rebound mechanisms identification tool is implemented in Excel and intended for use in a workshop setting. It involves three main steps:

1. Analyse an existing CEBM or a CEBM concept: a) Identify the relevant CEBM patterns (i.e., BM configuration options a given company may employ when engaging in the circular economy); b) Determine the relevant involved actors across the selected CEBM patterns (incl. business-to-business (B2B) and business-to-consumer (B2C) setups)
2. Determine the consumption factors (i.e., factors that lead to consumption and production activities) potentially stimulated by the selected CEBM patterns
3. Determine rebound mechanisms that are potentially activated, following the catalogue of 26 archetypical structures that explain rebound mechanisms (i.e., the underlying economic and behavioural causal chains that lead to RE)

The tool is demonstrated in a case study within household appliances, which resulted in the identification of 10 CEBM patterns, 21 instances of consumption factor stimulation and 18 potential rebound mechanisms, indicating design areas for the prevention and/or mitigation of the RE.

By enabling the visualisation of the causal chains from the CEBM to RE via the stimulation of consumption factors and activation of rebound mechanisms, this research demonstrated the potential to enable the anticipation and prevention of potential RE. Future research should expand the risk analysis of identified rebound mechanisms. Also, there is room to further integrate socio-behavioural mechanisms, secondary benefits, leverage points, and interventions beyond CEBM.