Advancing circular business models: Anticipating rebound effects and fostering regeneration

Climate change threatens the ecological systems essential for human survival, driven by our unsustainable “take-make-waste” production and consumption. We consume resources faster than the planet can replenish. While policies and consumer behavior changes are necessary, businesses must also play a key role in addressing this crisis. Circular business models offer a potential solution by transforming production and consumption patterns to slow, close, and regenerate material loops. However, their true environmental impact remains uncertain, with rebound effects and unintended consequences undermining their effectiveness. Further, given the damage done to the planet, businesses must also focus on doing ‘more good’ rather than just ‘less harm’. This thesis explored how businesses can be aided in transitioning to a more circular economy. It examined how businesses measure their impact, how innovators can be guided towards more circular design choices, and how circular strategies can rebound, eroding environmental gains. Additionally, it explored new emerging regenerative business models that aim to have a net positive restorative impact on nature and society.