Rebound effects in circular business models: A review of cases and mitigation strategies

Circular business models are typically designed with the intent to meet customer demands, while resolving environmental issues related to resource usage, product lifetimes and waste reduction. Yet, rebound effects might hinder their positive impacts. Through a systematic literature review of 76 articles, the rebound effects of different circular business model archetypes and suggestions for their mitigation were investigated. The resulting overview unveils the direct, indirect and economy-wide rebound effects of different circular business model archetypes. This is coupled with rebound mitigation suggestions from literature from a business and policy perspective. The findings also revealed an apparent lack of quantitative research on mitigation strategies. The results can be used by researchers to guide research efforts, and by practitioners who want to find ways to mitigate the rebound effects of their circular business models. Future research should focus on creating standardized assessment methods for rebounds and their mitigation strategies.