University of Melbourne · FACULTY OF MARKETING

MKTG90049 · Marketing, Society and Sustainability

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Chapter 8 of 11 · MKTG90049

Green Growth, Degrowth and the Circular Economy

Week 8 explores the macro debate about growth itself. It teaches the linear economy, the three circular-economy principles (Esposito, Tse & Soufani 2018), the waste hierarchy, marketing's role in creating circular value, and the green-growth-versus-degrowth debate (Hickel 2021), including the limits of decoupling and alternatives to GDP.

In assessment this is a frequent short- and long-answer topic: define circular-economy principles and give three ways an industry can create circular value, and take a position in the green-growth/degrowth debate — the group report's recommendations often draw on circular-value strategies.

In this chapter

What this chapter covers

  • 01Linear economy (take-make-dispose) vs circular economy; the waste hierarchy (avoid → reuse → recycle → recover → treat → dispose)
  • 02Three circular-economy principles (Ellen MacArthur / Esposito et al. 2018): design out waste, keep materials in use, regenerate nature
  • 03Marketing's role: identify circular value (circular inputs, product-life extension, resource recovery); promote circular lifestyles
  • 04Ownership → access-based consumption; the consumer circular-action loop (make-do, borrow, second-hand, built-to-last, repair, pass-on)
  • 05Economic growth and GDP; the problems with GDP; alternatives (GPI, Green Growth Index)
  • 06Green growth (OECD 2011) and the decoupling assumption; is it happening? (Vogel & Hickel 2023)
  • 07Degrowth (Hickel 2021): intentional, socially sustainable decrease; the growth-steady-state-recession-degrowth spectrum
Worked example · free

Short answer: circular-economy principles and three ways furniture can create circular value

Q [15 marks]. A Section 1 item: “What are the key principles of a circular economy, why should businesses pursue one, and using examples identify three ways the furniture industry can create circular value? (15 marks)” Show the model structure. (Use fresh examples — do not reproduce the lecturer's fashion case.)
  • +4Define the three principles (about 4 marks). In your own words: design out waste and pollution, keep products and materials in use, and regenerate natural systems — contrasted with the linear take-make-dispose model and its end-of-pipe waste.
  • +3Justify (about 3 marks). Two or three reasons: lower material cost and supply-chain risk, reduced environmental impact and regulatory exposure, and alignment with SDG 12. Frame it as business value, not only ethics.
  • +6Apply three distinct furniture mechanisms (about 6 marks, ~2 each). (1) Product-life extension: modular, repairable furniture with a repair/spare-parts service; (2) resource recovery: a take-back scheme feeding reclaimed timber and foam back as circular inputs; (3) ownership → access: a furniture rental/subscription model for renters and students. Each names a distinct circular-value strategy.
  • +2Position on the growth debate + close (about 2 marks). One line placing the strategy on the value hierarchy (circular > linear; degrowth/green-growth) — e.g. rental reduces total throughput, nodding to degrowth. Keep to ~300 words.
Structure: define the three CE principles → justify (cost, risk, regulation, SDG 12) → three distinct furniture mechanisms (product-life extension; resource recovery; ownership-to-access) → one line on the growth debate. Marks reward correctly named principles and three genuinely different circular-value strategies.
Sia tip — As with any circular-economy answer, the three examples must be different mechanisms, not one idea reworded — product-life extension, resource recovery and ownership-to-access are three genuinely distinct levers. Use a fresh industry (not fashion). Ask Sia to give you another sector (electronics, food) and check your three mechanisms are distinct and each maps to a named circular-value strategy.
Glossary

Key terms

Circular economy (three principles)
An economy that designs out waste and pollution, keeps products and materials in use, and regenerates natural systems (Ellen MacArthur Foundation; Esposito, Tse & Soufani 2018) — replacing the linear take-make-dispose model.
Waste hierarchy
The order of preference for handling materials, most to least preferable: avoid and reduce → reuse → recycle → recover energy → treat → dispose. Inner loops (maintain, reuse, refurbish) are preferred over recycling.
Circular value strategies (marketing's role)
Ways marketing creates circular value: using circular inputs (renewable or recycled materials), product-life extension (durability, repair, refurbish), and resource recovery (reclaiming materials at end of use) — plus shifting consumers from ownership to access and promoting circular lifestyles.
Green growth (OECD 2011)
Fostering economic growth while ensuring natural assets keep providing resources and environmental services — it assumes the decoupling of growth from emissions. Critics (Vogel & Hickel 2023) argue achieved decoupling in rich countries is far too slow to be Paris-compliant.
Degrowth (Hickel 2021)
A smooth, intentional and socially sustainable selective decrease in production and consumption — deliberately 'simply different' rather than a recession ('less of the same'). Associated proposals include universal basic services, shorter working hours and community currencies.
Decoupling
Separating economic growth from resource use and emissions. Relative decoupling (impact grows slower than GDP) is common; absolute decoupling (impact falls while GDP rises) fast enough for climate targets is the contested claim at the heart of the green-growth debate.
FAQ

Green Growth, Degrowth and the Circular Economy FAQ

What are the three principles of a circular economy?

Design out waste and pollution; keep products and materials in use; and regenerate natural systems (Ellen MacArthur Foundation; Esposito, Tse & Soufani 2018). They replace the linear take-make-dispose model, in which waste and externalities pile up at the end. In the exam you define these three, justify pursuing them (cost, risk, regulation, SDG 12), and then give distinct ways an industry creates circular value — via circular inputs, product-life extension and resource recovery, plus shifting from ownership to access.

What is the difference between green growth and degrowth?

Green growth (OECD 2011) aims to keep the economy growing while protecting natural assets, and it relies on decoupling growth from emissions. Degrowth (Hickel 2021) argues that in rich countries this decoupling is not happening fast enough, and calls instead for an intentional, socially just reduction in production and consumption — 'simply different', not a recession. The debate sits on a spectrum from growth ('more of the same') through steady-state to degrowth, and the exam often asks you to take and defend a position.

What is marketing's role in the circular economy?

Marketing helps identify and promote circular value. Concretely it can design for circular inputs (renewable or recycled materials), enable product-life extension (durability, repair, refurbish, resale), and support resource recovery (take-back and reclaiming materials at end of use). It also drives the cultural shift from ownership to access-based consumption (rental, sharing) and promotes circular lifestyles through the consumer action loop — make-do, borrow, buy second-hand, buy built-to-last, keep reusing, repair and pass on.

Can AI help me with the circular economy in MKTG90049?

Yes, as a study aid. Sia can drill the three CE principles, the waste hierarchy and the green-growth/degrowth spectrum, and check that your circular-value examples are genuinely distinct mechanisms. Give it an industry and ask it to structure the define-justify-apply answer step by step. It does not write your graded answer, and University of Melbourne academic-integrity rules apply.

Study strategy

Exam move

Week 8 is a high-frequency exam topic, so make the circular-economy answer automatic. Memorise the three CE principles, the waste hierarchy, the three circular-value strategies (circular inputs, product-life extension, resource recovery), and the green-growth-versus-degrowth spectrum. Drill the define-justify-apply move on a rotating industry (furniture, electronics, food), always giving three genuinely distinct value strategies and a one-line stance on the growth debate. Because the group report's recommendations often lean on circular-value strategies, this rehearsal pays off twice. Be ready to argue either side of the green-growth/degrowth debate using the decoupling evidence and GDP critiques. When two examples start to overlap, ask Sia to force one onto a different strategy and set a fresh industry; it teaches the method and never does your graded work. Confirm assessment details on Canvas.

Working through Green Growth, Degrowth and the Circular Economy in MKTG90049? Sia is AskSia’s AI Marketing tutor — ask any MKTG90049 Green Growth, Degrowth and the Circular Economy question and get a clear, step-by-step explanation grounded in how MKTG90049 is taught and assessed. Read this chapter free, then take your hardest questions to Sia.

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