Digitalisation for the transition to a resource efficient and circular economy
Digital transformation is increasingly recognised as a means to help unlocking the
benefits of more inclusive and sustainable growth and enhanced social well-being.
In the environmental context, digitalisation can contribute to decoupling economic
activity from natural resource use and their environmental impacts. This paper takes
stock of the implications of digitalisation for the transition to a resource efficient
and circular economy. Particularly, the paper provides insights into how digitalisation
may fuel circular business models in the private sector, and discusses the role of
digital technologies in addressing some important market failures that stand in the
way to scaling up circular activities. It also offers a public sector perspective,
by exploring how digital technologies support effective delivery of circular economy
policies, enabling better policy design, reshaping government-citizen interaction
and improving implementation of policies. Additionally, the paper maps potential unintended
consequences of the digital circular transition, including general risks related to
data, security, privacy and transparency, as well as rebound effects and unexpected
regulatory interventions.
Published on March 28, 2022
In series:OECD Environment Working Papersview more titles