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Mapping the prevalence and size of the informal circular economy in an industrialised region

Year: 2025

Type: article

Abstract: As the circular economy (CE) gained significant attention over the past decade, most research focuses on activities in the formal economy, overlooking substantial contributions from the informal economy. The informal economy, encompassing unmeasured productive activities, involves 60 % of workers and 80 % of enterprises globally. While informal waste management in the Global South received substantial scholarly attention, the informal CE in industrialised nations, particularly in activities such as repair, reuse, sharing, and refurbishing, is underexplored. This paper is the first to estimate the encompassing prevalence and economic weight of these informal CE activities in an industrialised region, using administrative and survey data for Flanders (Belgium). Our findings reveal that the informal CE plays a significant role, especially regarding higher circularity strategies. The paper outlines a roadmap for mapping the informal CE in other industrialised regions and discusses perspectives on integrating informal activities into formal CE frameworks to foster a just transition .

Source: Resources Conservation and Recycling

DOI: 10.1016/j.resconrec.2025.108268

Authors: Wim Van Opstal, Emma Pals, Dani Sangers

Institutions: Flemish Institute for Technological Research, Vrije Universiteit Amsterdam

Language: English

Topic: Sustainable Supply Chain Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Responsible consumption and production, Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $5,270