Study On The Input-Output Problem Of Circular Economy

Circular economy is a creative path and an operational mode for human to achieve sustainable development. Currently, circular economy of our country is going into an important stage of comprehensive and profound development. To achieve the requirements of forming a more large-scale of circular economy and drawing up regional circular economy development planning, which was respectively proposed in the party’s seventeenth conference and the "Circular Economy Promotion Law", are important task for circular economy development currently. This means that circular economy needs to be implemented on a larger scale, or circular economy needs to expand to a larger region. In this context, it is essential to deepen the understanding of circular economy and refine common theoretical issues combined with circular economy experience and task of our country. Input-output is an objective phenomenon of circular economy development, which reflects the openness of circular econonmy and the course of going beyond system boundaries and expanding to a larger system scope of circular economy practice. Circular economy practice both at home and abroad demonstrates that the essence of circular economy development is a couse of continuously going beyond system boundaries. Circular economy development is not confined to effective and cyclic use of resource in the system. Furthermore, it reflects input-output on system boundaries, which is the principal contradiction that circular economy development is facing. Input-output problem directly reflects the essence of circular economy and is closely related to the main task of our country’s circular economy development. Studying on this problem is of theoretical and practical significance.Based on the comprehensive literature searching and aiming at the task of our country’s circular economy development, this paper extracts the common issue from phenomenon of circular economy practice, i.e., the input-out problem of circular economy. From the multidisciplinary perspective, this paper conducts in-depth research on the aspects of theory basis, theory meaning, driving mechanism, boundary and input-output, which eatablishes the theoretical framework of input-output problem of circular economy. This theoretical framework is also applied to improve a circular economy system, which is an important issue of this research field. Combined with case study, the established framework and method is tested. The research of this paper tries to provide theoretical and methodological reference for the extensive development of circular economy of our country. The research results of this paper are as follows:Through the systemic analysis on domestic and international documents, this paper finds that circular economy research involves multi-disciplinary, the theoretical research is mostly in a exploratory stage and does not become a complete theoretical system. Developing theory building of circular economy is of great significance. Currently, input-output problem of circular economy has not been raised in research literatures.The theoretical basis of input-output problem of circular economy is discussed. It is composed of the related contents of philosophy, ecology, economy, system theory and thermodynamics, which provides theoretical support for researching input-output problem of circular economy.The input-output problem of circular economy is systematically analyzied. Based on literature review, this paper analyses the system characteristic of circular economy and defines circular economy system, regional circular economy and regional circular economy system. From two perspectives, circular economy system is classified into generalized circular economy system and concrete classification of circular economy system. Through analysing and summing up the basic structure of natural ecosystem, the basic structure of circular economy system is put forward and the connotation of input-output problem of circular economy is analysed. Key elements of input-output of circular economy are classified.Driving mechanism of input-output of circular economy is studied. This paper puts forwards three driving mechanism of input-output of circular economy, i.e., nature driving, market driving, and government driving. From the perspective of ecosystem function, the nature driving mechanism of input-output of circular economy is analysed. Based on economic globalization and economies of scale theory, the driving role of market on input-output of circular economy is analysed. Applying the institutional isomorphism theory of organizational sociology, coercive isomorphism mechanism, which reflects the role of government, is studied. Also, typical cases are combined to study the three driving mechanism. The actual input-output of circular economy is realized under the role combined of these three driving mechanisms. At the same time, driving function input-output of circular economy corresponding to the three driving mechanisms are established, which could be applied to optimize the objective of input-output of circular economy.From system boundary perspective, the relationship and influencing factors of circular economy system boundary and input-output are studied. Based on analyzing and summarizing literatures related to system boundary and organiztion boundary, this paper defines circular economy system boundary from two perspectives. The relationship of circular economy system boundary and input-output is analyzed. Influencing factors on circular economy system boundary and input-output is analyzed and summarized mainly from three aspects, i.e., institutional factor, technical factor, and psychological factor. A new system engineering theory, Jieke theory, is introduced to research and establish a model, i.e., degree of circular economy system openness model, which is used to represent the openness of circular economy system.The theoretical framework established through above research, is applied to resolve an important issue, i.e., breaking the "lock-in" status and improving a circular economy system, in circular economy and international industrial ecology field. This issue is attached great importance in academia. However, it still lacks relevant idea and method. Based on input-output problem of circular economy, this paper presents a three-levle method for improving a circular economy system, which is composed of individual firm level, inter-firm level and regional level. Three phases of implementing the three-level is analysed, which involve reginal training and investigation (phase one), implementing individual firm cleaner production audit (phase two), and developing a regional circular economy development plan (phase three). Prerequisites, benefits and challenges of implementing the three-level approach are also analysed.Finally, the theoretical framework and method established is applied to an empirical study, i.e., Hai Hua circular economy system (HHCES) of our country. Based on research on driving mechanism of input-output of circular economy and relationship of system boundary and input-output of circular economy, a case study of going beyond the sectoral boundary during HHCES development is developed. Applying the three-level method, a case study of improving water cycle in HHCES is also developed.