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Conventional food and agricultural production systems employ a linear "take, make, waste" approach: taking natural resources from the Earth to make food and fuel, generating waste that contaminates the soil and water, and emitting harmful pollutants.

More recently, a new model of production is gaining traction in the scientific and business community: a "circular bioeconomy" that reduces and recycles waste, transitions away from fossil fuels to renewable bio-based alternatives, and regenerates natural systems. This approach is critical for feeding and fueling the world's growing population in environmentally sustainable ways.

But it's a complicated concept, and significant questions remain: How should waste reduction be implemented? How far should we go in being "circular," considering its costs and benefits? And how can a circular bioeconomy system get buy-in from farmers, industry, and consumers in a market economy?

A new paper by noted agricultural economists and scientists argues that the concept of a circular bioeconomy needs to expand beyond its technical focus on reducing waste and incorporate a values-based economic lens. The authors emphasize the need for the right policies, incentives, and market signals to persuade consumers and producers to make environmentally sound decisions—and to help ensure that the system is equitable.

"Zero waste is an appealing goal, but we also need to consider the economic consequences of achieving this goal—the cost, who bears it, and how we get people to implement it. This requires us to not just focus on the environmental benefits of reducing waste and fossil fuel use, but to think about what level of waste is acceptable considering economic and equity goals as well as how we make the transition by inducing consumers and producers to make the right choices," said lead author Madhu Khanna, ACES Distinguished Professor in Environmental Economics and Alvin H. Baum Family Chair & Director of the Institute for Sustainability, Energy, and Environment (iSEE) at the University of Illinois Urbana-Champaign.

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