Government Policy and Incentives are Key to Overcoming Circular Economy Adoption Barriers in Food Supply Chains

Why It Matters

Addressing these systemic challenges is crucial for reducing food loss and waste, which have profound environmental, economic, and social consequences. Designers and businesses can leverage this understanding to advocate for and integrate supportive policy frameworks into their sustainability strategies.

Key Finding

The study found that government-backed policies, financial incentives, and strict environmental enforcement are the most significant hurdles to implementing circular economy practices in the food industry.

Key Findings

• Government policy creation is a primary driver for circular economy adoption.
• Providing incentives and enforcing environmental regulations are critical challenges.
• Addressing these core challenges facilitates the broader adoption of circular economy principles.

Research Evidence

Aim: What are the critical challenges to adopting a circular economy in the food supply chain, and how can they be prioritized for effective implementation towards sustainable development?

Method: Expert panel discussion and interpretive structural modeling (ISM) combined with grey decision-making trial and evaluation laboratory (DEMATEL).

Procedure: Researchers identified 15 critical challenges from existing literature and expert discussions. They then used ISM to map the relationships between these challenges and DEMATEL to characterize them based on their cause-effect relationships, using grey theory to manage uncertainty in expert judgments.

Context: Food supply chain operations and sustainable development initiatives.

Design Principle

Systemic barriers, particularly policy and regulatory gaps, must be addressed to enable the widespread adoption of sustainable design strategies.

How to Apply

When designing circular systems for food, research and engage with relevant government bodies and industry associations to understand and influence policy and incentive frameworks.

Limitations

The study relies on expert judgment, which can introduce subjectivity, and the application of grey theory aims to mitigate but not entirely eliminate uncertainty.

Student Guide (IB Design Technology)

Simple Explanation: To make the food industry more circular (less waste, more reuse), the biggest help needed is for governments to make clear rules, offer money incentives, and enforce environmental laws.

Why This Matters: Understanding policy and incentive challenges helps you design solutions that are more likely to be adopted and successful in the real world, especially in complex systems like food supply chains.

Critical Thinking: To what extent can a designer or business overcome significant government policy and incentive challenges independently, or does it require broader industry and societal shifts?

IA-Ready Paragraph: This research highlights that the successful adoption of circular economy principles within the food supply chain is significantly influenced by external systemic factors, particularly the presence and enforcement of government policies and the availability of financial incentives. These elements were identified as critical barriers, suggesting that design interventions must consider and potentially aim to influence these broader contextual aspects for greater impact and feasibility.

Project Tips

• When researching challenges for your design project, consider the role of external factors like government policy.
• If your design aims for sustainability, investigate existing regulations and incentives that could support or hinder its adoption.

How to Use in IA

• Reference this study when discussing the external factors and systemic challenges that influence the feasibility of your sustainable design solutions.

Examiner Tips

• Demonstrate an understanding of how external policy and economic factors can impact the success of a design, not just the technical feasibility.

Independent Variable: Government policy, incentives, environmental regulations.

Dependent Variable: Circular economy adoption in the food supply chain.

Controlled Variables: Expert judgment, relational intensity between challenges.

Strengths

• Utilizes a robust methodology (ISM-DEMATEL) to analyze complex interdependencies between challenges.
• Addresses a critical gap in research regarding CE adoption barriers in the food sector.

Critical Questions

• How can design solutions proactively address or mitigate the identified policy and incentive challenges?
• What are the potential unintended consequences of poorly designed government policies or incentives for CE adoption?

Extended Essay Application

• An Extended Essay could explore the development of a policy proposal or an incentive model designed to facilitate CE adoption in a specific food supply chain context, using this research as a foundational understanding of the barriers.

Source

Circular economy adoption challenges in the food supply chain for sustainable development · Business Strategy and the Environment · 2022 · 10.1002/bse.3191