The economics of circular bioeconomy supply chains: Theory and case studies

Circular bioeconomy employs advanced life science technologies to utilize renewable natural resources to produce goods and is a key part of the sustainable development strategy. Most circular-bioeconomy supply chains, however, are still in their infancy. We propose a conceptual model that characterizes the farm decision to adopt the circular use of agricultural residues such as animal waste and corn stover. The model highlights the complementarity between farm outputs and the residue and pins down key determinants of adoption. We illustrate how the economic forces work by examining two budding circular-bioeconomy supply chains—biochar and black soldier fly.