A circular business model for material reuse in buildings: implications on value creation

Julia Nussholz, Freja Nygaard Rasmussen, Katherine Whalen, Andrius Plepys

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Resumé

Buildings are responsible for a third of global greenhouse gas emissions. A large share of their life cycle impacts is from emissions embedded in materials. Material reuse has the potential to reduce the embedded impacts, since reused materials often have lower environmental footprints than primary materials. Institutional settings and the structure of the building sector pose multiple barriers for businesses developing and commercialising products with reused materials. Although material reuse is claimed to create multidimensional values for several stakeholders, the implications on value creation are still insufficiently understood and taken into account in decision-making.
This study presents a business model by a pioneering Scandinavian company offering three building products with reused materials (i.e. windows, wood cladding, and concrete). Through a multi methods approach, it investigates and discusses the business models’ implications on value creation for the firm, value chain partners, customers, and the environment. Findings point to a significant potential for reuse to be price-competitive with linear production practices, to offer value for customers and partners in the value chain network, and to provide significant reductions in environmental impacts. Implications on value creation at industry and macro-economic level, if the business model would be upscaled, should be further investigated.
OriginalsprogEngelsk
TidsskriftJournal of Cleaner Production
ISSN0959-6526
DOI
StatusAccepteret/In press - 1 okt. 2019

Citer dette

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title = "A circular business model for material reuse in buildings: implications on value creation",
abstract = "Buildings are responsible for a third of global greenhouse gas emissions. A large share of their life cycle impacts is from emissions embedded in materials. Material reuse has the potential to reduce the embedded impacts, since reused materials often have lower environmental footprints than primary materials. Institutional settings and the structure of the building sector pose multiple barriers for businesses developing and commercialising products with reused materials. Although material reuse is claimed to create multidimensional values for several stakeholders, the implications on value creation are still insufficiently understood and taken into account in decision-making.This study presents a business model by a pioneering Scandinavian company offering three building products with reused materials (i.e. windows, wood cladding, and concrete). Through a multi methods approach, it investigates and discusses the business models’ implications on value creation for the firm, value chain partners, customers, and the environment. Findings point to a significant potential for reuse to be price-competitive with linear production practices, to offer value for customers and partners in the value chain network, and to provide significant reductions in environmental impacts. Implications on value creation at industry and macro-economic level, if the business model would be upscaled, should be further investigated.",
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A circular business model for material reuse in buildings: implications on value creation. / Nussholz, Julia; Rasmussen, Freja Nygaard; Whalen, Katherine; Plepys, Andrius.

I: Journal of Cleaner Production, 01.10.2019.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

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AB - Buildings are responsible for a third of global greenhouse gas emissions. A large share of their life cycle impacts is from emissions embedded in materials. Material reuse has the potential to reduce the embedded impacts, since reused materials often have lower environmental footprints than primary materials. Institutional settings and the structure of the building sector pose multiple barriers for businesses developing and commercialising products with reused materials. Although material reuse is claimed to create multidimensional values for several stakeholders, the implications on value creation are still insufficiently understood and taken into account in decision-making.This study presents a business model by a pioneering Scandinavian company offering three building products with reused materials (i.e. windows, wood cladding, and concrete). Through a multi methods approach, it investigates and discusses the business models’ implications on value creation for the firm, value chain partners, customers, and the environment. Findings point to a significant potential for reuse to be price-competitive with linear production practices, to offer value for customers and partners in the value chain network, and to provide significant reductions in environmental impacts. Implications on value creation at industry and macro-economic level, if the business model would be upscaled, should be further investigated.

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