DEA Models Effectively Measure Circular Economy Performance for R2, R8, and R9 Strategies

Why It Matters

Understanding how to quantitatively measure the impact of circular economy initiatives is crucial for designers and businesses aiming to implement sustainable practices. DEA provides a framework to assess efficiency and identify areas for improvement in resource utilization and waste reduction.

Key Finding

The review found that DEA is a useful method for measuring how well circular economy strategies like reducing, recycling, and recovering work, but most of the research comes from China and the EU, suggesting other regions are underrepresented.

Key Findings

• DEA models are valuable for assessing circular economy strategies, particularly R2 (Reduce), R8 (Recycling), and R9 (Recovering).
• A significant portion of the research (over 40%) originates from China, with the European Union also being a prominent region (nearly 20%), indicating a potential research gap in other geographical areas.
• There is a need for a critical evaluation of existing DEA approaches to highlight their strengths and weaknesses.

Research Evidence

Aim: To systematically review and categorize Data Envelopment Analysis (DEA) models used for evaluating circular economy (CE) practices, identifying their strengths, weaknesses, data sources, methodologies, and evaluation criteria.

Method: Systematic Literature Review

Procedure: The researchers conducted a systematic review of 151 peer-reviewed articles published between 2015 and 2024 that utilized Data Envelopment Analysis (DEA) to measure circular economy performance. They analyzed the types of DEA models, data sources, methodologies, and evaluation criteria employed, focusing on the application of DEA to specific circular economy strategies.

Sample Size: 151 peer-reviewed articles

Context: Circular Economy Measurement and Evaluation

Design Principle

Quantify and evaluate the efficiency of circular economy strategies using analytical models to drive continuous improvement.

How to Apply

When undertaking a design project focused on sustainability, consider how you will measure the effectiveness of your circular design strategies. Research existing DEA models or develop appropriate metrics to assess performance in areas like material reduction, recycling rates, and energy recovery.

Limitations

The review focuses exclusively on DEA models and may not capture other quantitative or qualitative evaluation methods for circular economy practices. The geographical distribution of studies might skew the perceived strengths and weaknesses of DEA models.

Student Guide (IB Design Technology)

Simple Explanation: This study shows that a math tool called DEA can help measure how good things like recycling and reducing waste are. Most studies using this tool are from China and Europe, so we need more research from other places.

Why This Matters: Understanding how to measure the success of sustainable design choices is vital for demonstrating their value and identifying areas for improvement in your design projects.

Critical Thinking: Given the geographical bias identified in the research, how might cultural or economic differences influence the applicability and interpretation of DEA findings for circular economy practices in different regions?

IA-Ready Paragraph: This systematic literature review by Ratner et al. (2025) highlights the utility of Data Envelopment Analysis (DEA) in quantitatively assessing circular economy (CE) performance, particularly for strategies focused on reduction (R2), recycling (R8), and recovery (R9). The research underscores the need for a critical evaluation of existing DEA models and points to a geographical bias in current studies, with a strong focus on China and the European Union. This work provides a valuable framework for designers seeking to measure the effectiveness of their sustainable design interventions.

Project Tips

• When evaluating your design's environmental impact, consider using quantitative methods like those discussed in this review.
• Be mindful of the geographical context of existing research when drawing conclusions about best practices.

How to Use in IA

• Reference this review when discussing the methods used to evaluate the environmental performance or circularity of your design solution.
• Use the findings on specific strategies (R2, R8, R9) to frame your own evaluation criteria.

Examiner Tips

• Demonstrate an understanding of how quantitative methods can be used to assess the sustainability claims of a design.
• Critically evaluate the scope and geographical focus of the research you cite.

Independent Variable: Types of DEA models, data sources, methodologies, evaluation criteria, circular economy strategies (R2, R8, R9).

Dependent Variable: Circular economy performance/efficiency.

Controlled Variables: Peer-reviewed articles published between 2015-2024, use of DEA models.

Strengths

• Comprehensive systematic review covering a decade of research.
• Categorization of DEA models and their applications provides a structured overview.

Critical Questions

• What are the limitations of DEA in capturing the full complexity of circular economy systems beyond simple efficiency metrics?
• How can the identified geographical research gap be addressed to foster more globally relevant insights into circular economy measurement?

Extended Essay Application

• An Extended Essay could explore the application of a specific DEA model to a local circular economy initiative, comparing its findings to the trends identified in this review.
• Investigate the development of new DEA models tailored to capture specific nuances of circular design not fully addressed by current methodologies.

Source

Measuring Circular Economy with Data Envelopment Analysis: A Systematic Literature Review · Mathematical and Computational Applications · 2025 · 10.3390/mca30050102