In today's world, the term "circular economy" has become one of the most widely used concepts. In theory, a circular economy is built on the principles of resource efficiency, reuse, and recycling, emphasizing reduction, reuse, and recycling. It aims for low consumption, low emissions, and high efficiency, aligning with sustainable development. This model represents a fundamental shift from the traditional economic growth pattern of "mass production, mass consumption, and mass disposal." Also known as a closed-loop resource-based economy, it creates a clean and cyclical flow: "resources → production → products → consumption → recycling." Through ecological industrial chains, resources are reused in a recycling-oriented system.
An excellent example of this in practice is the large-scale eco-industrial chain in China, involving a sulfuric acid plant, a phosphate fertilizer plant, and a cement plant. The sulfuric acid produced by the sulfuric acid plant is used in the phosphate fertilizer plant to make fertilizers. The by-product gypsum is then heated to produce sulfur dioxide and quicklime, which are used in the cement plant. Meanwhile, the sulfur dioxide is sent back to the sulfuric acid plant to be recycled into sulfuric acid. This not only solves the problem of excessive gypsum waste but also enables the efficient recycling of sulfur, demonstrating real material recovery.
However, some chemical companies misunderstand the concept of a circular economy, treating it merely as a way to create internal loops between upstream and downstream products. While this may appear to form a cycle, it often lacks true economic efficiency. For instance, a coking company in a county in Shanxi Province tried to integrate coal mining upstream and steel production downstream, believing it was a major cycle. However, this led to inefficiencies and energy shortages. The lesson here is that if a company isolates itself and tries to control the entire industry chain internally, it may seem to have full control over resources, reducing external transaction costs. But without market competition, internal costs can actually rise, leading to inefficiency.
From the perspective of market economy and division of labor, businesses should focus on their core strengths and collaborate with others. By specializing in what they do best and exchanging goods and services, companies can boost productivity and maximize benefits. Therefore, implementing a circular economy should be done according to local conditions, taking into account both environmental and economic factors, rather than forcing a one-size-fits-all approach.
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