Creating Circular Value Ecosystems: A Regenerative Conceptual Framework Moving from Products to Systems Based on Internalizing Externalitie

This dissertation develops a regenerative conceptual framework that internalizes externalities from design. Previous research has offered diverse externality valuation methods. However, these have temporal, spatial, and scope limitations. Therefore, this study is motivated by two research questions: (1) how to internalize externalities by inserting environmental impacts and resource remediation costs into the cost analysis of the traditional life-cycle product; and (2) how current linear value chains can be redesigned into a closed-loop, circular value ecosystem regenerative by design and able to create sustainable increasing returns business models.;In order to answer these research questions, it is hypothesized that current value chains can be redesigned into a closed-loop value system. Within these systems, all the residue produced along the traditional linear production chain can be transformed into valuable products or become feedstock for other processes in the region. This is done through the creation of non-usual business ventures, which eventually create more sustainable wealth than traditional linear process business models.;In order to test the hypothesis, the study developed a conceptual framework, based on circular economy, industrial ecology, and systems thinking. This conceptual framework enables the valorization (create more value) of residue and, consequently, the circularization of diverse regional linear value chains. Moreover, the framework was tested on a case study. Using system dynamic modeling, the proposed circular value chains from the case study were simulated in order to test validity of the framework as well as its overall economic, social, and environmental impacts.;The study found that it is feasible to create a harmonic connection between diverse systems, therefore providing support in which, indeed, regional linear value chains can harness the potential for becoming circular value ecosystems. This means that, by transforming potential negative externalities derived from residue and waste into valorized products, positive externalities can be generated in the form of new business ventures, more economic revenue streams, more jobs, and ecological regeneration. The case study illustrates the actual creation of a circular value ecosystem, showing the redesign process of local linear value chains. Despite the usefulness of the proposed framework and its technical viability, it was found that trust, reciprocity, and collaboration among stakeholders (thus, the presence of systemic entrepreneurs, thinking in systems, and the context) are factors ultimately determining the success of the circularization and internalization process.;The most important contribution of the present research is the development of a conceptual framework focused on moving from creating products to designing regenerative systems through the circularization of linear value chains. This study advances our understanding regarding the inherently iterative and complex systems of residue valorization.