Elsevier

Waste Management

Volume 29, Issue 2, February 2009, Pages 996-1002
Waste Management

Country Report
Implementing China’s circular economy concept at the regional level: A review of progress in Dalian, China

https://doi.org/10.1016/j.wasman.2008.06.036Get rights and content

Abstract

The circular economy (CE) concept was introduced in China to address environmental degradation and resource scarcity associated with rapid economic development. Chosen as a demonstration city, Dalian has implemented the CE strategy as a means of conserving water, materials, energy and land. This paper outlines some of the regional CE initiatives that have been successful to date in Dalian, including those focusing on conserving energy and water resources and others focusing on reduced industrial emissions. The paper details the approach used in implementing the CE concept in Dalian, tracing the foci and goals of the program, and the sectoral approach used to implement a CE. Although Dalian municipality has achieved many successes in implementing a CE, our paper identifies several challenges that, until recently, have held back complete implementation. These include: the lack of incentives for older industries to ‘green’ their operations, the lack of financial support to expand the CE concept, and a broad-based need for heightened public awareness and participation in CE initiatives. Our paper then identifies several responses by Dalian municipality to overcome these challenges, including pricing and tax reforms that serve as conservation incentives, the provision of financial support for CE promotion through budget reorganization, and the organization of CE training programs. Our paper concludes that, although CE initiatives have been successful in Dalian, more is possible and more is needed before Dalian can be designated a true ‘eco-city’. The approach used by Dalian can provide guidance for other Chinese cities, although it is recognized that each city must tailor its own approach for differing contexts and conditions.

Introduction

Industrial ecology uses an ecosystem metaphor and natural analogy to study resource productivity and environmental burdens of industrial and consumer products and their production and consumption systems (Van Berkel, 2007). It offers an invitingly concrete way to integrate environmental management and meet environmental, economic, and community development goals (Chertow, 2000). Industrial ecology provides strategies to achieve greater efficiency through economies of systems integration, whereby partnerships between businesses meet common service, transportation, and infrastructure needs, and the concept adds value to businesses and communities by optimizing the use of energy, materials, and community resources (Ayres, 1994). It is more urgently needed and effectively applied in developing countries, many of which are facing severe constraints on the availability of resources (Erkman, 2001). China, as the largest developing country, is facing severe resource and environmental issues due to rapid industrialization. The traditional industrialization, which typically produced negative industrial byproducts such as pollution and environmental degradation, should be reformed and replaced, applying the principles of industrial ecology. With the promise of industrial ecology understood, and with a significant array of conceptual and theoretical guidance already available, the Chinese government has decided to adopt the circular economy (CE) as the national eco-industrial development model, being piloted across the country. The concept of CE has the same essence as industrial ecology, implying a closed-loop of materials, energy and waste flows (Geng and Doberstein, 2008). This concept was first proposed in China in 1998 and formally accepted by the central government in 2002 (Yuan et al., 2006). It presents a new concept of more sustainable urban economic and industrial development. Through adequate policies, flexible organizational structures, and effective tools for integrated resources management (IRM), CE aims for simultaneous positive outcomes for the Chinese economy, society, and the environment. Circular economy also aims to contribute towards higher regional competitiveness and an equal distribution of economic growth and wealth. At a theoretical level, the CE model fits closely with ecological modernization theory, which is “centrally concerned with the relationship between industrial development and the environment” (Murphy and Gouldson, 2000). These aspects are all important factors in the triple bottom line achievement that is essential in the delivery of high environmental standards and quality of life.

To date, a number of economic and informational instruments have been used to implement a CE. These include: pollution levies, environmental taxes and eco-labeling; environmental management tools such as cleaner production, energy and water cascading (such as co-generation and wastewater recycling and reuse); life cycle assessments (LCAs) and the “3Rs” (reduction, reuse and recycling) of waste reduction. Additionally, environmental management systems such as ISO 14001 (Ren et al., 2005) have been used. These tools have been implemented in China through favorable policies developed by organizational structures, such as powerful stakeholder networks using system-wide integrated resource management systems (Mao and Kang, 2005).

The central government in China has now had almost a decade of experience in developing and implementing a circular economy. In 2002, the State Environmental Protection Administration (SEPA) promoted the CE concept by providing guidelines for developing a CE, particularly for the planning and operation of eco-industrial parks (EIPs) (Wang, 2004). As CE promotion intensified in China, the concept was gradually recognized as a viable economic strategy, as well as an environmental strategy. As a result, in 2004 the National Development and Reform Commission (NDRC) was appointed by the State Council to take over the duty of promoting and implementing a CE (Yuan et al., 2006). However, even with these efforts by Chinese government agencies, the knowledge of existing CE best practices in China is inadequate, especially with regard to the effectiveness, efficiency and appropriateness of these CE best practices for the differing contexts of Chinese cities.

The process of identifying the appropriateness of CE best practices for different Chinese cities requires both understanding and information exchange on background conditions, local policies and myriad other factors comprising the local context of Chinese cities. Thus, the objective of this paper is to review Dalian’s experience in implementing a CE and to trace the specific context that led to Dalian’s CE action plan. The data and information used to create this paper were derived from unpublished municipal government reports and published papers, as well as semi-structured interviews with key informants in the city. Interviewees were promised anonymity, and thus interviewee responses have been pooled and in some cases slightly reworded to obscure interviewee identities. The first two authors provided research leadership while a research team from Dalian University of Technology (DUT) collected many of the data on the city’s CE actions.

This paper first depicts the developmental context of the city of Dalian, paying particular attention to those issues that impede sustainable development or provide an advantageous foundation for CE implementation. The paper then presents the general CE approach and outlines regional CE actions taken at the municipal level in Dalian. The remaining focus of the paper is designed to detail the different components of CE planning and to identify challenges and potential solutions. The paper concludes that, although CE initiatives have been successful in Dalian, much more is needed before Dalian can be designated a true ‘eco-city’.4

Section snippets

An overview of Dalian

Dalian municipality is located in the southern tip of the Liaodong peninsula in northeast China Fig. 1. The city has a total administrative area of 12,573 km2. This administrative area includes urban and rural areas (248 km2 and 2450 km2, respectively), as well as protected ecological areas/nature preserves (9875 km2). In 2006, the population of the region was 5.72 million, making the city the 13th largest in China (Dalian city government, 2007). Dalian is a sub-provincial city, which means that it

Foci and goals

Dalian CE planning focuses on four key resources (land, water, materials and energy) and three industrial sectors (agriculture, construction and the service sector including tourism). To support the implementation of a CE, Dalian identifies key projects and develops relevant supportive polices. Since Dalian has developed largely as a result of its industrial base, industry is seen as a key area for CE implementation, and the concept of industrial ecology is central. Industrial ecology is an

Challenges

As reviewed earlier, Dalian Municipality has had several successes in implementing and promoting the CE concept. However, there are also several challenges holding back complete implementation of a CE. The first challenge is that there are few industry incentives for ‘greener’ activities. In terms of resource use efficiency, including waste reduction and reclamation, most newly established or relocated manufacturers in Dalian are pioneers relative to older industries, meeting all national and

Conclusions

To alleviate problems such as pollution, resource scarcity and climate change, cities have traditionally tried to reduce wastes and lessen environmental impacts. A circular economy, although a more ambitious approach, may be easier to implement (Greyson, 2006). By preventing waste at the source as well as turning waste into a resource, a CE can reduce both waste to be treated and levels of resource consumption.

The case of Dalian shows that there is a great potential in increasing resource use

Acknowledgements

This study is funded by the Natural Science Foundation of China (70772085), namely the Chinese Academy of Science, for their kind financial response, the Asian Research Group at the National Institute for Environmental Studies, Japan, Fok-Ying Tung Education Foundation (104001), Dalian City Government (2005J22JH015) and the Ministry of Education (2007-24).

References (27)

  • J. Murphy et al.

    Environmental policy and industrial innovation: Integrating environment and economy through ecological modernization

    GeoForum

    (2000)
  • R.U. Ayres

    Industrial metabolism: Theory and policy, in industrial metabolism: Restructuring for sustainable development

    (1994)
  • M. Brodkorb et al.

    Energy management: Consider supply and demand

    Chemical Engineering (NY)

    (2007)
  • M. Chertow

    Industrial symbiosis: Literature and taxonomy

    Annual Review of Energy and Environment

    (2000)
  • Dalian City Government, 2007. Dalian Year Book 2006. Dalian Press. (in...
  • Dalian Municipality, 2004. Guidelines for Developing Green Building in Dalian, Official Documents. (in...
  • Dalian Municipality, 2006. Dalian Circular Economy Development Planning. Unpublished Report, May 2006. (in...
  • Dalian Municipality, 2007. Dalian Action Plans for Energy Saving and Emission Reduction. Unpublished Report, August...
  • DEDZ, 2005. Eco-Industrial Park Planning Report, Official Document of Dalian Economic Development Zone. (in...
  • S. Erkman

    Industrial ecology: A new perspective on the future of the industrial system

    Swiss Medicine Weekly

    (2001)
  • G. Fryxell et al.

    The influence of environmental knowledge and values on managerial behaviours on behalf of the environment: An empirical examination of managers in China

    Journal of Business Ethics

    (2003)
  • Y. Geng et al.

    Environmental management system at the industrial park level

    Environmental Management

    (2003)
  • Y. Geng et al.

    Developing circular economy in China: Challenges and opportunities for achieving ‘leapfrog development’

    International Journal of Sustainable Development and World Ecology

    (2008)
  • Cited by (274)

    View all citing articles on Scopus
    1

    Tel.: +86 411 84706018; fax: +86 411 84707331.

    2

    Tel.: +1 519 888 4567x3384; fax: +1 519 746 0658.

    3

    Tel.: +81 29 8502119; fax: +81 29 8502584.

    View full text