I'm afraid that the most popular term today is "circular economy." In theory, the circular economy is based 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 approach of "mass production, mass consumption, and mass disposal." Also known as a closed-loop resource-based economy, it creates a clean and efficient cycle: "resources → production → products → consumption → recycling." By establishing ecological industrial chains, it promotes a recycling-oriented system.
For example, in China, the large-scale eco-industrial chain involving a sulfuric acid plant, a phosphate fertilizer plant, and a cement plant has been successfully implemented. The sulfuric acid from the first plant is used to produce phosphate fertilizers, while the by-product gypsum is decomposed into sulfur dioxide and quicklime. These materials are then used in the cement plant, and the sulfur dioxide is sent back to the sulfuric acid plant to produce more acid. This not only solves the pollution problem caused by excess gypsum but also ensures the recycling of sulfur, achieving real material circulation.
However, some chemical companies misunderstand the concept of a circular economy, treating it merely as a way to create a loop between upstream and downstream products. This results in a cycle that appears to be circular but lacks true economic value. A coking enterprise in a county in Shanxi Province once tried to integrate coal mines and steel production, believing this was a major cycle. Unfortunately, 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 and reduce external transaction costs. But without sufficient market competition, internal transaction costs can become higher than external ones.
According to the theory of division of labor in a market economy, businesses should focus on their strengths and collaborate with others. Specialization allows each company to concentrate on producing what they do best, then exchange goods with others to meet their needs. This greatly increases productivity and benefits all parties involved.
Therefore, implementing a circular economy should be done in a way that suits local conditions, taking into account both environmental and economic factors. It's not just about creating loops, but about building smart, efficient, and sustainable systems that benefit everyone involved.
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