Unlocking a Circular Economy with Blockchain: Recommendations for Policymakers and Researchers

Authors

DOI:

https://doi.org/10.18096/TMP.2024.01.08

Keywords:

blockchain, circular economy, regulatory environment, carbon credit

Abstract

Blockchain technology can help to build a circular economy in many areas, promoting sustainability and more efficient use of resources. In this paper, we examine the areas where we can expect significant breakthroughs from this technological innovation in the circular economy and the state of the domestic regulatory environment. We then recommend improvements to legislators that can help blockchain and its ecosystems support sustainable development in Hungary.

Author Biographies

Ádám Bereczk, University of Miskolc

Institute of Business Sciences

Bettina Hódiné Hernádi, University of Miskolc

Institute of Business Sciences

Gábor Mélypataki, University of Miskolc

Institute of Civil Sciences

References

Ayan, B., Güner, E., & Son-Turan, S. (2022). Blockchain technology and sustainability in supply chains and a closer look at different industries: a mixed method approach. Logistics, 6(4), 85. https://doi.org/10.3390/logistics6040085

Baralla, G., Pinna, A., Tonelli, R., & Marchesi, M. (2023). Waste management: A comprehensive state of the art about the rise of blockchain technology. Computers in Industry, 145, 103812. https://doi.org/10.1016/j.compind.2022.103812

Brown, T. (2022). Blockchain and its dependent technology's ethical implications. SSRN, 2022, 4038545. Pre-print. https://doi.org/10.2139/ssrn.4038545

Bułkowska, K., Zielińska, M., & Bułkowski, M. (2023). Implementation of blockchain technology in waste management. Energies, 16(23), 7742. https://doi.org/10.3390/en16237742

Clamba, V. (2023). Itt a szén-dioxid kvóta adó (Here is the carbon dioxide quota tax). RSM. Retrieved October 30, 2023 from https://www.rsm.hu/blog/adotanacsadas/2023/07/itt-a-szen-dioxid-kvota-ado

Del Vecchio, L. (n.d.). The sharing economy: Shifting from ownership to a sharing paradigm. TechDetector. Retrieved June 14, 2024 from https://techdetector.de/stories/thesharingeconomy

Ellen MacArthur Foundation. (n.d.). What is the circular economy? EMF. Retrieved October 10, 2023 from https://www.ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview

EU Directive 2020/852. EUR-Lex. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32020R0852

European Commission (2023). Circular economy action plan. EC. Retrieved October 10, 2023 from https://environment.ec.europa.eu/strategy/circular-economy-action-plan_en

European Commission (n.d.). Shaping Europe’s digital future. EC. https://digital-strategy.ec.europa.eu/en/policies/blockchain-climate-action

European Parliament (2021a). How the EU would implement the circular economy by 2050? EP. Retrieved October 30, 2023 from https://www.europarl.europa.eu/news/hu/headlines/society/20210128STO96607/hogyan-valositana-meg-az-eu-a-korkoros-gazdasagot-2050-re

European Parliament (2021b). New Circular Economy Action Plan. EP. Retrieved October 10, 2023 from https://www.europarl.europa.eu/doceo/document/TA-9-2021-0040_EN.html

European Parliament (2023). Circular economy: what does it mean, why is it important and what are its benefits? EP. Retrieved October 30, 2023 from https://www.europarl.europa.eu/news/hu/headlines/priorities/society/20151201STO05603/korforgasos-gazdasag-mit-jelent-miert-fontos-es-mi-a-haszna

Jakab, N. (2022). Fair transition in theory and practice. Publicationes Universitatis Miskolcinensis Sectio Juridica et Politica, 40(2), 237-249.

Jiang, P., Zhang, L., You, S., Fan, Y. V., Tan, R. R., Klemeš, J. J., & You, F. (2023). Blockchain technology applications in waste management: Overview, challenges and opportunities. Journal of Cleaner Production, 421, 138466 https://doi.org/10.1016/j.jclepro.2023.138466

Joshi, P., Tewari, V., Kumar, S., & Singh, A. (2023). Blockchain technology for sustainable development: a systematic literature review. Journal of Global Operations and Strategic Sourcing, 16(3), 683-717. https://doi.org/10.1108/jgoss-06-2022-0054

Juhász, Á. (2020a). Intelligent Contracts – A new generation of contractual agreements? European Integration Studies, (16)1, 41–53.

Juhász, Á. (2020b). Online szerződéskötés, digitális tartalom és szolgáltatás, intelligens szerződések – A szerződési jog új korszaka? Infokommunikáció és Jog, 75(E-klnsz.). https://infojog.hu/juhasz-agnes-online-szerzodeskotes-digitalis-tartalom-es-szolgaltatas-intelligens-szerzodessel-a-szerzodesi-jog-uj-korszaka-2020-2-75-e-kulonszam/

Kirchherr, J., Reike, D., & Hekkert, M. (2017). Conceptualising the circular economy: An analysis of 114 definitions. Resources, Conservation and Recycling, 127, 221-232. https://doi.org/10.1016/j.resconrec.2017.09.005

Mankar, A. (2022). Peer-to-peer trading will increase participation in carbon credit trading. Master’s Thesis. California State University, Long Beach. http://www.adityamankar.com/documents/Thesis.pdf

Mélypataki, G. (2022). Linking ecological and social responsibility - Is social plastic a possible solution? Zbornik Radova Pravni Fakultet (Novi Sad), LVI(2), 545-561. https://doi.org/10.5937/zrpfns56-39974

Mohamed, S. B., Haddad, S. S. G., Barakat, M., & Rosi, B. (2023). Blockchain technology adoption for improved environmental supply chain performance: the mediation effect of supply chain resilience, customer integration, and green customer information sharing. Sustainability, 15(10), 7909. https://doi.org/10.3390/su15107909

Mulligan, C., Morsfield, S., Cheikosman, E. (2024). Blockchain for sustainability: A systematic literature review for policy impact. Telecommunications Policy, 48(2), 102676. https://doi.org/10.1016/j.telpol.2023.102676

Munir, M. A., Habib, M. S., Hussain, A., Shahbaz, M., Qamar, A., Masood, T., Sultan, M., Mujtaba, M., Imran, S., Hasan, M., Akhtar, M. S., Ayub, H. M. U., & Salman, C. A. (2022). Blockchain adoption for sustainable supply chain management: economic, environmental, and social perspectives. Frontiers in Energy Research, 10, 899632. https://doi.org/10.3389/fenrg.2022.899632

Müller, G. (2023). Vision - we need to broaden the discussion on the circular economy. United Nations Industrial Development Organization. Retrieved October 10, 2023 from https://www.unido.org/stories/vision-we-need-broaden-discussion-circular-economy

Németh, K. (2021). The Basics of the Circular Economy. Veszprém: Pannon Egyetemi Kiadó.

Olajos, I. (2016). The legal problems related to the re-use of metallic wastes. Journal of Agricultural and Environmental Law, 11(1), 91–113. https://doi.org/10.21029/JAEL.2016.20.91

Sahoo, S., Kumar, S., Sivarajah, U., Lim, W. M., Westland, J. C., & Kumar, A. (2022). Blockchain for sustainable supply chain management: trends and ways forward. Electronic Commerce Research, 2022(May), 09569-1. https://doi.org/10.1007/s10660-022-09569-1

Steenmans, K., Taylor, P., & Steenmans, I. (2021). Regulatory opportunities and challenges for blockchain adoption for circular economies. In Y. Xiang, Z. Wang, H. Wang, & V. Niemi (Eds.), 2021 IEEE International Conference on Blockchain (Blockchain) (pp. 572-577), Melbourne, Australia. https://doi.org/10.1109/Blockchain53845.2021.00086

Upadhyay, A., Mukhuty, S., Kumar, V., & Kazançoğlu, Y. (2021). Blockchain technology and the circular economy: Implications for sustainability and social responsibility. Journal of Cleaner Production, 293, 126130. https://doi.org/10.1016/j.jclepro.2021.126130

Vilkov, A., & Tian, G. (2023). Blockchain’s scope and purpose in carbon markets: a systematic literature review. Sustainability, 15(11), 8495. https://doi.org/10.3390/su15118495

Woo, J., Fatima, R., Kibert, C. J., Newman, R. E., Tian, Y., & S. Srinivasan, R. S. (2021). Applying blockchain technology for building energy performance measurement, reporting, and verification (MRV) and the carbon credit market: A review of the literature. Building and Environment, 205, 108199. https://doi.org/10.1016/j.buildenv.2021.108199

World Economic Forum (2022). Circular economy: What is the circular economy, and why does it matter that it is shrinking? WEF. Retrieved October 10, 2023 from https://www.weforum.org/agenda/2022/06/what-is-the-circular-economy/

Zhang, T., Feng, T., & Cui, M. (2023). Smart contract design and process optimisation of blockchain-based carbon trading: The case of China's electric power sector. Journal of Cleaner Production, 397, 136509. https://doi.org/10.1016/j.jclepro.2023.136509

Downloads

Published

2024-07-18

How to Cite

Bereczk, Ádám, Hódiné Hernádi, B. ., & Mélypataki, G. (2024). Unlocking a Circular Economy with Blockchain: Recommendations for Policymakers and Researchers. Theory, Methodology, Practice – Review of Business and Management, 20(01), 77–89. https://doi.org/10.18096/TMP.2024.01.08