TY - JOUR
T1 - The Brussels and California Effects? Circular Economy Policy Influence Across Borders
AU - Bocken, Nancy
AU - Coffay, Matthew
AU - Dalhammar, Carl
N1 - Funding Information:
Nancy Bocken was funded by the European Union\u2019s Horizon 2020\u2019s European research Council (ERC) funding scheme under grant agreement No 850159. Matthew Coffay was funded by Research Council of Norway: OPPSIRK, Upcycling of Maritime Metal (grant number: 346840). Carl Dalhammar was funded by Swedish FORMAS Forskarr\u00E5d, through the project \u2018Mapping out and overcoming barriers for circular products: the policy context for corporations that want to \u201Cgo circular\u201D\u2019 (grant no. 2022\u201302045).
data source:
PY - 2025/1/1
Y1 - 2025/1/1
N2 - The influence of environmental policy has been known to move beyond the country or regional contexts in which they have been implemented. Examples in literature include the “California effect” and the “Brussels effect”, showing how the policies adopted in the EU and California influence other jurisdictions. In this paper we study the following: To what extent are companies operating in the United States influenced by circular economy policies outside their direct context? By interviewing companies operating in the United States, we find that firms are influenced by and actively work to influence circular economy policy, both as it originates from outside the United States (the Brussels effect, referring to policies in Europe) and from within the United States (such as the California effect). Key barriers to circular innovation include the lack of a comprehensive policy framework in the U.S., opposition from competitors, and making the business model work in the U.S. legal context. Strategies to overcome these include: getting legal support for circular business models, developing U.S. regulations, level the playing field for all U.S.-based companies, lobbying for supporting regulation, and collaboration. We find that EV battery recycling is a positive exception where U.S. policy provides clarity for circular innovation. Finally, we find that the characteristics of the ‘typical’ U.S. consumer may call for specific circular business models. We suggest future research to enhance our understanding on how policy might positively drive circular economy innovations in international companies.
AB - The influence of environmental policy has been known to move beyond the country or regional contexts in which they have been implemented. Examples in literature include the “California effect” and the “Brussels effect”, showing how the policies adopted in the EU and California influence other jurisdictions. In this paper we study the following: To what extent are companies operating in the United States influenced by circular economy policies outside their direct context? By interviewing companies operating in the United States, we find that firms are influenced by and actively work to influence circular economy policy, both as it originates from outside the United States (the Brussels effect, referring to policies in Europe) and from within the United States (such as the California effect). Key barriers to circular innovation include the lack of a comprehensive policy framework in the U.S., opposition from competitors, and making the business model work in the U.S. legal context. Strategies to overcome these include: getting legal support for circular business models, developing U.S. regulations, level the playing field for all U.S.-based companies, lobbying for supporting regulation, and collaboration. We find that EV battery recycling is a positive exception where U.S. policy provides clarity for circular innovation. Finally, we find that the characteristics of the ‘typical’ U.S. consumer may call for specific circular business models. We suggest future research to enhance our understanding on how policy might positively drive circular economy innovations in international companies.
KW - Brussels effect
KW - California effect
KW - Circular economy
KW - Circular economy policy
KW - Environmental policy
KW - Innovation
U2 - 10.1007/s43615-025-00516-4
DO - 10.1007/s43615-025-00516-4
M3 - Article
SN - 2730-597X
JO - Circular Economy and Sustainability
JF - Circular Economy and Sustainability
ER -