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Paper accepted in Journal of Environmental Planning and Management
1
The geography of circular
economy: job creation,
territorial embeddedness and
local public policies
Amadou NIANG, UMR SAD-APT, Université Paris-Saclay, INRAE, AgroParisTech
Sébastien BOURDIN, Normandy School of Management, Métis* Laboratory
André TORRE, UMR SAD-APT, Université Paris-Saclay, INRAE, AgroParisTech
*sbourdin@em-normandie.fr
Summary
To date, few studies have analysed the geography of the circular economy, especially its contribution to
economic activity on a sub-regional scale. In this context, our paper aims to analyse the evolution of
employment and activities in the circular economy at the local level in France. For this purpose, we use
a database on job creation and companies in the circular economy between 2008 and 2015 and we
propose for the first time a study measuring the creation of jobs and companies in the CE. We show
that the growth of employment in the circular economy is higher than the growth of total employment.
Moreover, we highlight that the number of companies in the circular economy is mainly concentrated
in metropolitan areas. We also point out the regional effect of the growth of the circular economy,
indicating the territorial embeddedness of this type of activity. Based on this observation, we assume
that regional public policies play a significant role in the deployment of a circular economy.
Keywords: Circular economy, local public policies, employment growth, territorial embeddedness,
spatial concentration.
Acknowledgement: The authors would like to thank the Agence de la Transition Ecologique (ADEME) for
the thesis grant.
Paper accepted in Journal of Environmental Planning and Management
2
INTRODUCTION
The circular economy (CE) has gained interest in recent years among the general public,
companies and local authorities (Urbinati et al., 2017), which consider it a key strategic
imperative for the operational implementation of sustainable development (Kirchherr et al.,
2017) or a way to locally anchor economic activities and implement new commercial strategies
and responsible consumption behaviours (Bourdin et al., 2022). At the European level, CE is
seen as a means to reindustrialise the continent (Bourdin and Torre, 2020). For the European
Union (EU), this is a strategic objective for ecological and energy transition and is considered
essential to ensuring the sustainable development of regions and cities (European Commission,
2015 and 2020). To curb the use and waste of resources and tackle pollution, CE should enable
sustainable economic growth by creating more wealth with either the same amount of material
or less material (Stahel, 2013, 2016; Haas et al., 2015; Gregson et al., 2015; Millar et al., 2019).
At the local level, CE is increasingly supported by public funding (da Silva, 2018; Kębłowski et
al., 2020) and mobilises numerous stakeholders in territorial development (Bourdin and Nadou,
2021; Jambou et al., 2021). For local authorities, it is increasingly being regarded as a strategic
objective because it allows for (i) improving productivity and resource efficiency, (ii) enhancing
local growth potential, (iii) implementing all types of innovations and (iv) creating new activities
that provide jobs and wealth (Stahel, 2016; Repp et al., 2020; Bourdin and Torre, 2020). In fact,
in France, as in more and more countries, it is developing at a rapid pace, as shown by the
interest in activities such as collaborative consumption solutions (carpooling, etc.), eco-
designed production, repair, second-hand sales, recycling and waste recovery. These new
circular activities represent important growth-enhancing business models for productive actors
(Preston, 2012; Urbinati et al., 2017). They increase the resilience of firms in the face of volatile
commodity prices and create value and wealth while preserving the environment as much as
possible (Lieder and Rashid, 2016; Garces-Ayerbe et al., 2019). Therefore, the commitment to
circularity reflects the desire of public and private actors to ensure economic growth that has
less impact on the environment and preserves the social well-being of populations. From this
point of view, Geissdoerfer et al. (2017) explain that CE can be seen as a new paradigm
responding to sustainable development objectives. In this context, local territories appear to
be an appropriate level of intervention and implementation of circular initiatives. Regions and
cities should play a decisive role in developing the EC's economic, social and environmental
potential (Bourdin et al., 2022).
Paper accepted in Journal of Environmental Planning and Management
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Various studies have recently focused on the economic evaluation of the impact of CEs in terms
of cost reduction. However, given the various definitions and measurement difficulties
(Korhonen et al., 2018), measuring CEs is still complex (Rizos et al., 2017). This may explain why
there is a lack of academic work explicitly measuring direct job creation and activities in the CE,
neither at the country level nor at the sub-regional level (Sulich and Sołoducho-Pelc, 2022).
Given the difficulties in obtaining data on job creation in the CE, researchers propose estimating
job creation in the green economy as a proxy (Horbach et al., 2017), but Van Oort et al. (2018)
explain that these approaches probably underestimate the reality of CE. Today, only a few
studies extrapolate job creation in CEs (Bastein et al., 2013; Cambridge Econometrics and Bio
Intelligence Services, 2014; Wijkman and Skanberg, 2015). With the exception of a few applied
studies, such as those by CIRCTER
1
(CIRCTER, 2019) or the WRAP and Green Alliance groups
2
(Morgan and Mitchell, 2015), which offer some regional analyses, there is no work attempting
to analyse the geography of the CE and its evolution at a sub-regional scale, even though CE
experiments are often implemented locally or regionally.
In this context, we answer the question of how circular economy activities are growing and the
extent to which they are being deployed on a local scale. The contribution of our article is
twofold. First, based on unreleased data, we propose a study measuring the creation of jobs
and companies in the CE. Second, we explore how this deployment of CE takes place at the
local level. To do so, we conduct a spatial analysis of the evolution of the CE between 2008 and
2015. For this investigation, we focus on France as a case study, for which we have collected
data from the National Secure Data Access Centre. The statistical grid used is the employment
zone (EZ)
3
, which allows us to carry out an analysis at the infra-regional scale, which is
unprecedented in the literature. By studying the spatial concentration of jobs and companies
in the CE and their evolution, we can investigate the extent to which public policies may play a
role in the deployment of such activities.
1
Circular Economy and Territorial Consequences (CIRCTER) is a European applied research project co-funded by
the European Regional Development Fund, the EU Member States and the partner states Iceland, Liechtenstein,
Norway and Switzerland. It was implemented by a network of teams from four EU countries, which analysed the
territorial determinants of circular economy growth.
2
Morgan and Mitchell (2015) conducted a study for the WRAP and Green Alliance groups, analysing the potential
for labour market job creation in Britain through improved resource efficiency through circular economy
activities. In part, this work adopts a spatialized regional approach to jobs generated by circularity practices.
3
The National Institute of Statistics and Economic Studies (INSEE) defines the EZ as "a geographical area within
which most of the active population resides and works, and in which establishments can find most of the labour
required to fill the jobs on offer".
Paper accepted in Journal of Environmental Planning and Management
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In the remainder of this article, we first present our framework of analysis, which defines the
circular economy and how it can generate job creation, before detailing the research
methodology in the second section. The results are presented in the third section. The last part
of our paper is dedicated to the conclusion, discussion and recommendations.
1. LITERATURE REVIEW
1.1. Defining circular economy
Population growth, increasing economic activity and rapid urbanisation are driving changes in
consumption and production patterns around the world, resulting in increasing resource
exploitation and exponential waste generation (Schroeder et al., 2019). In this context, the
authors explain that the implementation of a circular economy can be a way to address these
challenges.
The concept of a circular economy was first introduced by two British environmental
economists, Pearce et al. (1990). The authors develop the idea that it is necessary to consider
the Earth as a closed economic system. They take up the idea developed by Boulding (1966)
that the interrelations between the economy and the environment are not linear but circular.
Geissdoerfer et al. (2017) go even further and explain that circular economy can be considered
a new paradigm around sustainability issues, and that it is based on the idea of a regenerative
system.
Several authors point out the lack of consensus on the definition of circular economy (Kirchherr
et al., 2017; Blomsma and Brennan, 2017; Korhonen et al., 2018). However, most researchers
agree that the implementation of a circular economy should meet three main 3R principles
(Reduce, Reuse and Recycle). Reduction refers to the need to minimise the input of primary
energy and raw materials by improving production efficiency. Reuse refers both to the use of a
company's by-products and waste as a resource for other companies or industries and to the
use of products to their fullest capacity, through frequent maintenance and recovery to extend
their life. Recycling encourages the transformation of recyclable materials into new products
to reduce the consumption of virgin materials. Geissdoerfer et al. (2017) explain that these
different principles have a hierarchical importance: the reduction of resource use being the
guiding principle in a circular economy system, then the reusing and finally the recycling.
In 2013, the foundation Ellen MacArthur proposed a definition of circular economy, which is
often taken up and discussed in the literature (Suárez-Eiroa et al., 2019), integrating the three
Paper accepted in Journal of Environmental Planning and Management
5
main 3R principles that it promotes to productive actors. For our paper, we prefer the definition
of circular economy by Kirchherr et al. (2017), which is commonly accepted: "A circular
economy describes an economic system that is based on business models which replace the
'end-of-life' concept with reducing, alternatively reusing, recycling and recovering materials in
production/distribution and consumption processes, thus operating at the micro level
(products, companies, consumers), meso level (eco-industrial parks) and macro level (city,
region, nation and beyond), with the aim to accomplish sustainable development, which
implies creating environmental quality, economic prosperity and social equity, to the benefit of
current and future generations.". This definition thus has the advantage of integrating,
alongside the environmental benefits, the potential positive effects of circular economy
practices, particularly in terms of job creation, increased well-being of populations, and
resilience of actors at different scales of implementation.
However, according to Saavedra et al. (2018), circular economy is not limited to these three
principles. They also identify the economy of functionality (Bocken et al., 2014; Meier et al.,
2010; Nyvall et al., 2022) eco-design (which consists of integrating the end of life of the product,
environmental protection and the limited use of resources from the design of the product or
service) as well as industrial and territorial ecology (which consists of saving or improving the
productivity of resources by sharing/pooling them with companies and organisations in a given
territory). These approaches, while promoting cooperation between producers, service
providers and consumers, also encourage the application of the 3Rs principle through the
reuse, repair and reuse of products, reduction of resource and energy consumption, and
recycling and recovery of waste.
1.2. Circular economy, job creation and the role of public policies
Given the potential for job creation in the CE and the impact on economic growth (European
Commission, 2015), public authorities are increasingly taking up this issue. This is all the more
true as CE constitutes opportunities for territorial development (Bourdin et al., 2022). It also
allows for the territorialisation of economic activities (Cerceau et al., 2018), notably via the
implementation of policies favouring the development of industrial and territorial ecology
(Bourdin and Torre, 2020). Furthermore, Murray et al. (2017) explain that a circular economy
promotes more sustainable business models. Given the diversity of ways of doing CE (see
Section 1.1.), this new economic model represents new technological, socio-economic and
Paper accepted in Journal of Environmental Planning and Management
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environmental opportunities. Consequently, public authorities have multiple ways of seizing to
deploy CE (Bourdin et al., 2022).
The starting point for the implementation of CE by public authorities began in 1996 in Germany
with the enactment of the "Closed Substance Cycle and Waste Management Act". Following
Germany's lead, other developed countries followed suit in operationalising CE. The European
Commission also proposed its own action plan in 2015, fixing targets for landfill, reuse and
recycling. More generally, Dagilienė et al. (2021) point out that great efforts have been made
by local governments to promote waste sorting and reuse or repair. This raises the question of
the effects of these public policies on job and companies' creation. Kębłowski et al. (2020)
explain that many cities are in the process of proposing agendas for deploying CE to achieve
the 2030 Sustainable Development Goals. Cerceau et al. (2018) and Jambou et al. (2021) point
out that an increasing number of local authorities are deploying industrial and territorial
ecology approaches to foster the implementation of CE at the local level.
To date, there is no scientific work assessing job creation. The EU's Circular Economy Action
Plan (European Commission, 2015) estimates the potential for net job creation to be in the
order of 700,000 compared to the baseline scenario by 2030. Given the lack of academic work
directly measuring job creation in the circular economy, Horbach et al. (2017) propose
measuring its effects by looking at job creation in the green economy. They start from the
definition of green jobs according to UNEP (2008) and explain that it is reasonable to consider
that job creation in the circular economy can be linked to job creation in the green economy:
"jobs that contribute to protecting ecosystems and biodiversity; reducing consumption of
energy, materials and water through high efficiency strategies; decarbonising the economy and
minimising or completely avoiding the production of all forms of waste and pollution". Moreno-
Mondéjar et al. (2021) and Sulich and Sołoducho-Pelc (2022) start from the same observation
and also consider this premise in their study. Van Oort et al. (2018), for their part, explain that
by focusing only on green jobs, gross job creation in CE is underestimated. Nevertheless, if we
look at the work that has assessed job creation in the green economy, studies show that the
green economy is job-creating (Stanef-Puică et al., 2022).
2. DATA AND METHODOLOGY
Our study aimed to measure the growth of circular employment and assess possible trends in
terms of spatial concentration. This measurement was based on the use of a series of
indicators, mobilising data from companies involved in the circular economy. The cartographic
Paper accepted in Journal of Environmental Planning and Management
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analysis of some of the indicators at the sub-regional scale (employment areas) allowed us to
observe the geography of the deployment of the circular economy.
2.1. Data and definition of the scope of the circular economy sphere
To focus on the study of the evolution of circular activities at the level of establishments and
companies, we used data on the number of establishments and salaried employment according
to the place of work between 2008 and 2015. They were extracted from the INSEE's statistical
source of the local productive apparatus. We chose this period because it is from 2008 onwards
that we observe a 'take-off' of the circular economy in France (ADEME
4
, 2014), while 2015
corresponds to the promulgation of the law on the energy transition for green growth (18
August 2015), which recognises the transition to CE as a national objective for achieving the
2030 Sustainable Development Goals.
We then identified, in the French nomenclature of activities (NAF), those that could fall within
the scope of the CE. The list of activities is not exhaustive, particularly for the industrial and
territorial ecology or the economy of functionality (except for rental activities), which are not
referenced as such by the NAF. This is a limitation of our study, which cannot be filled by the
available data.
Table 1: Identification of activities in the circular economy
Circular economy sphere
References
Number of circular
activities
Selected circular activities
Economy of functionality
Meier et al., 2010;
Bocken et al., 2014;
Nyvall et al., 2022
15
Rental
Extension of the duration of use
Kirchherr et al.,
2017; Blomsma and
Brennan, 2017;
Geissdoerfer et al.
2017
21
Maintenance and repair
Repair and maintenance
Trade and repair
Trade in second-hand goods
Business-to-business trade in waste and scrap
Recycling and waste recovery
Blomsma and
Brennan, 2017;
Korhonen et al.,
2018
11
Dismantling of wrecks
Demolition work
Wastewater collection and treatment
Waste collection
Treatment and disposal of waste
Recovery of sorted waste
Remediation and other waste management
services
Production of gaseous fuels
Steam and air-conditioning production and
distribution
4
The French National Agency for Ecological Transition
Paper accepted in Journal of Environmental Planning and Management
8
In total, 47 circular activities were identified with the NAF codes for the main activities of the
companies. The data were extracted from the National Secure Data Access Centre, which
provides information on salaried employment for each company in France. We aggregated this
data at the level of EZs in France (n = 304 spatial units). We chose this spatial unit of analysis
because the EZ is characterised by both a residential and an economic vocation (specificity of
the local business fabric). It aims to take into account the local market through exchanges
between companies and employees–consumers. Moreover, it constitutes an area where the
density of inter-firm relations is important.
2.2 Statistical measures of local circular employment dynamics
The estimation of a series of statistical indicators allowed us to assess the temporal and spatial
evolution dynamics of the development of CE in France. We used as indicators the employment
growth rate, the location coefficient, the economic density (of companies and employment)
and the Moran I statistic (see Annexe 6). These statistical measures are generally mobilised in
empirical studies analysing issues of the location of economic activities to identify
concentrations and characterise their geographical distribution (Combes et al., 2011).
We began by estimating the absolute growth rate of circular employment at the national level,
obtained by the ratio of the change in the number of jobs between 2008 and 2015. This allows
us to reflect on the growth of circular employment in the national economy and account for its
weight. The mapping of the indicators provides an overview of the geography of the circular
economy by identifying the geographical distribution of circular activities and their evolution.
Then, we utilized the most widely used concentration indices (location coefficient and
economic density) to measure the geographical distribution of activities (Combes et al., 2011).
Finally, estimation of Moran's I-statistic makes it possible to test the existence of a spatial
concentration (Anselin, 1996) of circular activities. More precisely, the objective here is to
determine whether the growth of circular companies in an EZ tends to be similar to that
observed in neighbouring EZs.
3. RESULTS
3.1. Higher growth in circular employment than in total employment
Around 2% of the jobs created in the French economy can be included in circular practices,
which represents the equivalent of 576,000 people employed in this sector in 2015 (see Table
2). The activities of extension of the useful life of goods – which include activities of repair,
Paper accepted in Journal of Environmental Planning and Management
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maintenance, reuse and re-utilization of goods – are the most important providers of circular
jobs, with 243,167 employees (42% of the total), followed by the activities associated with
recycling and waste recovery, which make up 30% of all circular jobs. These results are
interesting as they confirm the idea of waste hierarchy in the circular economy, as indicated by
Geissdoerfer et al. (2017). We find the order defined by these authors in our results:
reuse/repair what you can and recycle what cannot be reused. This is rather encouraging,
especially in a context where Morseletto (2020) explains that CE is too often reduced to the
issue of recycling, when the priority should be to reduce or reuse/repair.
Table 2: Changes in circular jobs in metropolitan France between 2008 and 2015
Circular economy
sphere
Number of jobs
Evolution
2008
2015
Workforce
Employees
%
Workforce
Employees
%
Absolute
change
Growth rate
Whole economy
26 337 759
100
26 730 677
100
392 918
1,49
Circular economy
558 986
2,12
575 864
2,15
16 878
3,02
Economy of
functionality
154 263
0,59
159 541
0,60
5 278
3,42
Extension of the
duration of use
240 904
0,91
243 167
0,91
2 263
0,94
Recycling and waste
recovery
163 819
0,62
173 156
0,65
9337
5,70
In terms of evolution, the 3% net growth of circular jobs between 2008 and 2015 was higher
than the trend observed during this same period for total employment (1.49%). The increase is
driven by a more or less strong dynamic of all circular activity sectors. However, activities
related to the recycling and recovery of waste have the highest growth, at around 6%,
compared to 1% of the additional jobs created for activities that extend the useful life of goods.
This can be explained by the fact that many investments have been made by local authorities
to develop more technologically efficient waste management plants (Bourdin et al., 2022). It
can also be argued that more and more communication is being done with citizens to support
waste-sorting initiatives (Dagilienė et al., 2021).
We can also notice that the CE sphere "extension of the duration of use" employed more people
than the "recycling and waste" sphere at the end of the period (42% compared to 30% of total
circular jobs in 2015). Furthermore, the functionality economy shows a growth rate of around
3.42%, which is slightly higher than the overall growth of circular activities, although it
contributes less to job creation. This is confirmed by the CIRCTER report (2019), which stresses
Paper accepted in Journal of Environmental Planning and Management
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the importance of agglomeration effects linked to the implementation of new service business
models.
3.2. More metropolitan circular activities
Observation of the dynamics of the circular economy reveals that it is not evenly distributed
across areas. Figure 1 represents the relative weight of the 20 EZs with the highest
concentration of circular jobs in 2015 (excluding Paris and the EZs of Corsica). These 20 first EZs
concentrate on 195,695 employees, or slightly more than a third (38.57%) of metropolitan
employment
5
. These territories play by far the most important role in circular economic
transformation, with a maximum of 23,271 employees located in Lyon (which concentrates
4.59% of total circular employment in France).
Figure 1: Relative weight of the 20 employment areas with the most circular jobs in
metropolitan France (excluding Paris and Corsica)
Between 2008 and 2015, the number of jobs located in these territories rose from 186,336 to
195,695, for an absolute variation of 9,359 jobs, which represents a relative weight of 53.38%
of the total jobs created in France and a growth rate of 3.58%. An increase of around 15% can
be observed in Roissy-Sud Picardie, which is under the shared influence of the Ile de France and
5
See the results including Paris and Corsica in the annex.
0,00 0,50 1,00 1,50 2,00 2,50 3,00 3,50 4,00 4,50 5,00
Lyon
Roissy - Sud Picardie
Coulommiers
Saclay
Marseille-Aubagne
Toulouse
Nantes
Rouen
Orly
Grenoble
Lille
Rennes
Montpellier
Strasbourg
Cergy
Clermont-Ferrand
Nice
Le Havre
Brest
Vallée de la Bresle - Vimeu
4,59
3,91
3,00
2,95
2,85
2,29
2,06
1,75
1,67
1,43
1,42
1,36
1,33
1,25
1,19
1,17
1,16
1,12
1,04
1,04
Growth rate: 3.58
Absolute % change 2008-2015: 53.38
Paper accepted in Journal of Environmental Planning and Management
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Hauts-de-France regions. It is also worth noting that these areas, which concentrate most of
the circular jobs, correspond to the most populated cities.
This logically raises the question of the place and role of more peripheral territories, particularly
rural ones, in the dynamics of the circular transformation of the economy. Figure 2 deals with
the relative weight of the 20 employment areas with the lowest concentration of circular
employment in 2015. It clearly shows that these areas – whose circular activities are among the
least important in metropolitan France – are mostly sparsely populated.
Figure 2: Relative weight of the 10 employment areas with the fewest circular jobs in
metropolitan France (excluding Paris and Corsica)
Thus, the circular economy is comparatively less established in these low population density
territories. The number of employees working in circular activities decreased over the study
period by 8.22%, from 2,797 to 2,567 circular jobs in 2015, a relative weight of only 0.51%. This
situation contrasts with the employment areas of the metropolises, which participate
significantly in the development dynamics of the circular economy. This result can be linked to
the fact that urban areas have made the circular economy a priority topic in their economic
development policies (Kębłowski et al., 2020). Cerceau et al. (2018) show that the territorial
embedding of resource management is particularly developed in metropolitan areas through
the development of urban industrial symbiosis approaches.
0,000 0,005 0,010 0,015 0,020 0,025 0,030 0,035
Le Blanc
Autun
Avallon
Loches
Morteau
Mauriac
Ploërmel
Vire
Châteaudun
Commercy
Issoudun
Saint-Claude
Morvan
Ussel
Marne-la-Vallée
Limoux
Ambert
Wissembourg
Nancy
Chatillon
0,033
0,031
0,031
0,031
0,030
0,029
0,029
0,028
0,028
0,027
0,026
0,026
0,024
0,024
0,023
0,023
0,020
0,019
0,016
0,009
growth rate: -8.22
Absolute % change 2008-2015 : -2,30
Paper accepted in Journal of Environmental Planning and Management
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3.3. A strong regional effect of the spatial distribution of circular activities
Figure 3 shows the evolution of circular jobs and the locations of companies in the CE. We
observe a dispersion of the progression of jobs throughout France, with a specific growth in the
large cities.
Regarding the creation of circular activities, we can observe that it seems to follow the logic of
regional administrative divisions. The evolution of circular activities is particularly marked in
certain regions (Hauts-de-France, Ile-de-France, Grand-Est, Occitanie and Nouvelle-Aquitaine).
Bourdin and Torre (2021) explain that territorial reform in France has resulted in increased
power for regional authorities. The latter has taken control of the economic development of
the regions and the ecological transition. Consequently, some of them have been very active
on EC issues, as it represents a means of territorialising industry and greening productive
activities (Bourdin and Torre, 2021).
Figure 3: Changes in the number of circular jobs and circular establishments between 2008
and 2015
Growth rate of circular employment Growth rate of circular establishments
Consequently, it can be hypothesised that the spatial concentration effects that follow the
contours of the regions highlight the incentive role of funding and public policies. Certain
regional authorities have been specifically committed to the implementation of public policies
favouring the deployment of CE. In particular, Hauts-de-France and Occitanie – which have both
experienced notable growth in circular employment – have higher unemployment rates than
other regions in France. The Hauts-de-France Region has been implementing regional policies
to reorient its highly industrialised economic model since the early 2000s. The Ecological and
Paper accepted in Journal of Environmental Planning and Management
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Social Transformation Plan and the Third Industrial Revolution projects (Rifkin, 2013) have
fostered partnerships and local dynamics (Belarouci, 2022), thus contributing to the emergence
of CE activities, particularly in territories in decline due to unemployment. Jobs related to waste
collection, treatment and recycling activities are particularly important in certain employment
areas of the region, such as Dunkirk, Flanders-Lys and Lens-Hénin (Vidalenc, 2019). For the
Regional Council of Occitania we identify a political will in the regional planning documents
6
to
make the CE a priority for economic development, with a particular focus on rural areas.
Figure 4: Location coefficient of circular companies in France between 2008 and 2015
Weight of EZs in the total number of circular Weight of EZs in the total number of circular
companies in 2008 (%) companies in 2015 (%)
It is also possible to observe the effects of local public policies towards CE in the maps in Figure
4. We calculated a location coefficient for each EZ in 2008 and in 2015, respectively. They
clearly indicate that the territories that have experienced the most significant increase in
circular activities (Figure 3 – growth rate of circular companies) were less developed in CE
activities at the beginning of the period in 2008 (Figure 4). This observation highlights a sort of
catching up of some territories, reinforcing the hypothesis of the positive effects of local public
policies on the development of CE. Jambou et al. (2021) highlight how local public policies have
enabled some companies to develop their circular activities, notably by promoting inter-firm
cooperation. They underline that these local authorities are implementing industrial and
6
https://www.laregion.fr/Environment-and-Landscapes
Paper accepted in Journal of Environmental Planning and Management
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territorial ecology approaches, financed in part by the local level but also by the national level
via the French Agency for Ecological Transition. Cerceau et al. (2018) pointed out that this type
of industrial and territorial ecology approach allows for the local embeddedness of economic
activities.
3.4. A vacuum diagonal of circular economy activities
As we have seen, the geographical distribution of circular activities appears to be correlated
with high-density EZs. The mapping of the density of companies (Figure 5) shows that the latter
is particularly high in regional metropolises. Conversely, there is a clear pattern of low economic
density of circular activities corresponding to the French "diagonal of emptiness"
7
and which is
increasing. The EZs comprised in this "diagonal of emptiness" are known for their low economic
attractiveness and are characterised by the existence of large agricultural areas.
Figure 5: Number of circular economy establishments per km² in 2008 and 2015
Number of circular establishments Number of circular establishments
per km² in 2008 per km² in 2015
The Moran's I index measuring spatial autocorrelation makes it possible to highlight the
geographical concentration of economic activities at the national level (Table 4). Taken as a
7
This notion, which is often contested (Oliveau and Doignon, 2016), refers to a representation of territories that
are less populated than the French average, forming a band that crosses the country from the North-East to the
South-West.
Paper accepted in Journal of Environmental Planning and Management
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whole, there is a significant spatial concentration in the location of circular economy activities
in the metropolitan area.
Table 4: Moran's I index of establishment growth in the circular economy
Circular economy activities
Moran's I
p-value
Circular economy as a whole
0,264
0,010
Economy of functionality
0,227
0,010
Extension of the duration of use
0,191
0,010
Recycling and waste recovery
-0,095
0,350
However, not all sectors of the circular economy show the same level of spatial concentration,
particularly in the case of waste recycling and recovery activities, which appear to be well-
distributed over the national territory. This can be explained by the fact that each community
of municipalities (or equivalent) has the capacity for waste treatment, which induces a rather
spatial dispersion, and that this activity of waste treatment is also being developed in rural
areas through the implementation of biogas activities (Niang et al., 2022a, b). On the other
hand, there is a spatial concentration of the economy of functionality and extended-use
initiatives, which tend to be located in urban and peri-urban areas (Kębłowski et al., 2020). It
can be hypothesised that these activities are linked to the presence of higher social categories
and higher levels of education in the most urbanised areas in which people adapt their ways of
consuming according to the imperatives of the CE (Muranko et al., 2018).
CONCLUSION & IMPLICATIONS
Our study of the spatio-temporal dynamics of circularity activities aimed to analyse at a fine
geographical scale the concentration of circular jobs and activities. Stanef-Puică et al. (2022)
explained that there are no studies analysing actual job creation in CE, partly due to data
availability. From this point of view, our article constitutes a significant contribution to the
literature by proposing an analysis of job creation and the creation of companies in the CE and
Paper accepted in Journal of Environmental Planning and Management
16
its development at the local scale. We have shown that the circular economy has strong
potential for job creation at the national level. However, by describing the spatial distribution
of circular activities, we have highlighted that behind this overall growth, some territories seem
to be taking the lead in applying the CE transformation. The trend towards a spatial
concentration of CE, with a regional logic, also suggests a likely effect of regional public policies.
In a systemic and integrative vision of deployment strategies, the regional authority can thus
be considered a level that drives the coordination of CE actions in territories (Bourdin et al.,
2022) and strengthens mobilisation and cooperation between local actors (Bourdin and Nadou,
2020). Nevertheless, significant disparities can be seen at the level of sub-regional territories,
suggesting significant idiosyncrasies at the local level. This is in line with the work of Lamine et
al. (2018), who, based on an analysis of green ecosystems, highlighted the crucial role played
by local public policies and institutions in the dynamics of the emergence of new green
technologies. Our results also confirm the studies of Cerceau et al. (2018) and Bourdin et al.
(2022) on the role of regional policies in fostering CE deployment.
Consequently, the regional authority should play a key role in supporting the implementation
of the CE. For example, regional authorities could consider carrying out a systematic survey of
the types and quantities of resources used and waste produced each year by the regional socio-
economic system. It could also be useful to identify dynamic sectors that lend themselves well
to the implementation of industrial and territorial ecology approaches. A study of EC business
models among regional companies would make it possible to identify good practices that could
serve as an example of deployment on a local scale. Finally, to encourage companies to engage
in EC, it could be relevant to systematically integrate EC criteria into public procurement.
Given the systemic changes involved in the circular economy (Desing et al., 2020), local
authorities need tools to monitor and track progress across a range of parameters. Indeed, our
study can serve as a basis for developing a quantitative evaluation of local CE policies and
strategies. The data could also enable the development of predictive models for local
authorities to assess how the transition to a circular economy impacts the local labour market.
Based on these predictions, it could be possible to implement more active place-based policies
in terms of employment. From this point of view, the state could financially support cities that
wish to develop CE and for which the potential for creating activities is high.
A current limitation of the study concerns the available databases. While we have been able to
capture the sectors of activity related to recycling, re-use and re-purposing, it is not always easy
Paper accepted in Journal of Environmental Planning and Management
17
to identify the different forms of circular economy. This observation concerning the data should
constitute a working basis for the data-producing organisations, so as to rethink – at least in
part – the current classification of activities, which is still based on a linear economy and does
not yet adequately reflect the bases of a circular economy. Moreover, our results suggest an
effect of local public policies without testing them from an econometric point of view. Future
research could therefore seek to analyse the extent to which public policies influence job
creation, for example, by using counterfactual methods.
Our research is exploratory and proposes to open new fields of research on the implementation
of CE strategies, as well as on the explanatory factors contributing to job creation at the local
level. In future research, it would be interesting to identify the respective weights of each CE
sector and to analyse the specific evolution of these activities. In the same vein, an index of CE
jobs could be developed based on the hierarchy defined by Geissdoerfer et al. (2017) to analyse
which territories are most engaged in CE. It would also be interesting to evaluate the growth in
employment after 2015, the year in which the law on ecological transition and circular economy
was implemented in France. Then, evaluating the extent to which the legislation has
accelerated the growth (or not) of the CE on a local scale could be another avenue of research.
Paper accepted in Journal of Environmental Planning and Management
18
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Paper accepted in Journal of Environmental Planning and Management
23
APPENDIX 1: NAF codes (INSEE) for activities in the circular economy sphere
Circular economy sphere
NAF
Activities
Economy of functionality
4399E
Hire with operator of construction equipment
4941C
Truck rental with driver
7711A
Short-term rental of cars and light motor
vehicles
7711B
Long-term rental of cars and light motor
vehicles
7712Z
Truck rental and leasing
7721Z
Rental and leasing of leisure and sporting
goods
7722Z
Rental of videocassettes and video discs
7729Z
Rental and leasing of other personal and
household goods
7731Z
Rental and leasing of agricultural machinery
and equipment
7732Z
Rental and leasing of construction machinery
and equipment
7733Z
Rental and leasing of office machinery and
computer equipment
7734Z
Rental and leasing of water transport
equipment
7735Z
Rental and leasing of air transport equipment
7739Z
Renting and leasing of other machinery,
equipment and tangible goods n.e.c.
Extended life span
• Reuse
• Repair
• Reuse
3311Z
Repair of metalwork
3312Z
Repair of machinery and mechanical
equipment
3313Z
Repair of electronic and optical equipment
3314Z
Repair of electrical equipment
3315Z
Ship repair and maintenance
3316Z
Repair and maintenance of aircraft and
spacecraft
3317Z
Repair and maintenance of other transport
equipment
3319Z
Repair of other equipment
4520A
Maintenance and repair of light motor
vehicles
4520B
Maintenance and repair of other motor
vehicles
4540Z
Trade and repair of motorbikes
4677Z
Wholesale (business to business) of waste and
scrap
4779Z
Retail sale of second-hand goods in shops
9511Z
Repair of computers and peripheral
equipment
9512Z
Repair of communication equipment
9521Z
Repair of consumer electronics
Paper accepted in Journal of Environmental Planning and Management
24
9522Z
Repair of household appliances and home and
garden equipment
9523Z
Repair of footwear and leather goods
9524Z
Repair of furniture and household equipment
9525Z
Repair of watches and jewellery
9529Z
Repair of other personal and household goods
Recycling and waste recovery
3521Z
Production of gaseous fuels (methanisation,
gasification)
3530Z
Steam and air conditioning production and
distribution
3700Z
Wastewater collection and treatment
3811Z
Collection of non-hazardous waste
3812Z
Collection of hazardous waste
3821Z
Treatment and disposal of non-hazardous
waste
3822Z
Treatment and disposal of hazardous waste
3831Z
Dismantling of wrecks
3832Z
Recovery of sorted waste
3900Z
Remediation and other waste management
services
4311Z
Demolition work
Paper accepted in Journal of Environmental Planning and Management
25
APPENDIX 2: Relative weight of the 20 employment areas with the most circular jobs in
metropolitan France (excluding Paris and Corsica)
Employment
areas
Weight in circular employment
Evolution
Population
density
(hbts/km²)
2008
2015
Number
%
Number
%
Number
%
Growth
(%)
Lyon
21850
4,46
23271
4,59
1421
8,11
6,50
578,8
Roissy - South
Picardy
17307
3,53
19816
3,91
2509
14,31
14,50
533,7
Coulommiers
14105
2,88
15238
3,00
1133
6,46
8,03
194,2
Saclay
14425
2,94
14952
2,95
527
3,01
3,65
1059,3
Marseille-
Aubagne
13855
2,83
14479
2,85
624
3,56
4,50
857,6
Toulouse
11369
2,32
11625
2,29
256
1,46
2,25
167,8
Nantes
10265
2,10
10428
2,06
163
0,93
1,59
221,2
Rouen
8009
1,64
8890
1,75
881
5,03
11,00
194,8
Orly
8809
1,80
8468
1,67
-341
-1,95
-3,87
4221
Grenoble
6903
1,41
7252
1,43
349
1,99
5,06
145
Lille
7476
1,53
7207
1,42
-269
-1,53
-3,60
1222,5
Rennes
7465
1,52
6916
1,36
-549
-3,13
-7,35
148,4
Montpellier
6218
1,27
6757
1,33
539
3,07
8,67
335,9
Strasbourg
6141
1,25
6318
1,25
177
1,01
2,88
685,8
Cergy
3932
0,80
6060
1,19
2128
12,14
54,12
624,8
Clermont-
Ferrand
5696
1,16
5929
1,17
233
1,33
4,09
101,9
Nice
6241
1,27
5884
1,16
-357
-2,04
-5,72
181
Le Havre
5113
1,04
5683
1,12
570
3,25
11,15
294
Brest
6196
1,26
5268
1,04
-928
-5,29
-14,98
197,9
Bresle Valley -
Vimeu
4961
1,01
5254
1,04
293
1,67
5,91
150,9
Total of the 20
EZs
186336
38,04
195695
38,57
9359
53,38
5,02
12116,5
Total EC
(excluding Paris
and Corsica EZ)
489845
100
507377
100
17532
100
3,58
45390,5
Paper accepted in Journal of Environmental Planning and Management
26
APPENDIX 3: Relative weight of the 10 employment areas with the fewest circular jobs in
metropolitan France (excluding Paris and Corsica)
Employment
areas
Weight in circular employment
Evolution
Population
density
(hbts/km²)
2008
2015
Number
%
Number
%
Number
%
Growth
(%)
Le Blanc
130
0,03
167
0,03
37
0,21
28,46
23,8
Autun
181
0,04
157
0,03
-24
-0,14
-13,26
29,7
Avallon
222
0,05
157
0,03
-65
-0,37
-29,28
23,3
Loches
111
0,02
155
0,03
44
0,25
39,64
27,6
Morteau
190
0,04
154
0,03
-36
-0,21
-18,95
70,7
Mauriac
144
0,03
149
0,03
5
0,03
3,47
18,4
Ploërmel
165
0,03
145
0,03
-20
-0,11
-12,12
55,1
Vire
176
0,04
143
0,03
-33
-0,19
-18,75
56,1
Châteaudun
210
0,04
141
0,03
-69
-0,39
-32,86
44
Commercy
102
0,02
137
0,03
35
0,20
34,31
23
Issoudun
136
0,03
134
0,03
-2
-0,01
-1,47
41,2
Saint-Claude
138
0,03
132
0,03
-6
-0,03
-4,35
44,9
Morvan
161
0,03
121
0,02
-40
-0,23
-24,84
12,7
Ussel
177
0,04
121
0,02
-56
-0,32
-31,64
20,3
Marne-la-Vallée
121
0,02
116
0,02
-5
-0,03
-4,13
30,6
Limoux
108
0,02
115
0,02
7
0,04
6,48
24,9
Ambert
120
0,02
100
0,02
-20
-0,11
-16,67
26,4
Wissembourg
71
0,01
94
0,02
23
0,13
32,39
118
Nancy
70
0,01
83
0,02
13
0,07
18,57
18,8
Chatillon
64
0,01
46
0,01
-18
-0,10
-28,13
12,6
Total of the 20
EZs
2797
0,57
2567
0,51
-230
-1,31
-8,22
722,1
Total EC
(excluding Paris
and Corsica)
489845
100
507377
100
17532
100
3,58
45390,5
Paper accepted in Journal of Environmental Planning and Management
27
APPENDIX 4. Relative weights of the 10 employment areas with the most circular jobs in
metropolitan France (including Paris and Corsica)
APPENDIX 5. Relative weight of the 10 employment areas with the fewest circular jobs in
metropolitan France (including Paris and Corsica)
11,40
4,041
3,441
2,646
2,600
2,514
2,019
1,811
1,544
1,470
0 2 4 6 8 10 12
Paris
Lyon
Roissy-Sud Picardie
Bordeaux
Saclay
Marseille-Aubagne
Toulouse
Nantes
Rouen
Orly Absolute % change 2008-2015: 35.47
Growth rate: 3.41
0 0,005 0,01 0,015 0,02 0,025
Ussel
Calvi - L'Île-Rousse
Ganges
Limoux
Ambert
Corte
Sartène - Propriano
Wissembourg
Ghisonaccia - Aléria
Chatillon
0,021
0,021
0,020
0,020
0,017
0,017
0,017
0,016
0,014
0,008
Growth rate: 48.43
Absolute % change 2008-2015: 2.28
Paper accepted in Journal of Environmental Planning and Management
28
ANNEXE 6: Methods of calculating statistical indicators
Statistical indices
Statistical entries
Explanations
Employment
growth rate
𝑇𝑥𝐸𝑚𝑝 = 𝐸𝑚𝑝𝑡 + 1 − 𝐸𝑚𝑝𝑡
𝐸𝑚𝑝𝑡
Measures the growth rate of jobs
at the place of work (T𝑥Emp)
between two periods Empt and
Empt+1, corresponding to the
evolution of the number of jobs
located at the spatial unit level.
Location
Coefficient
𝐿𝑂𝐶𝑍𝐸 = 𝑛𝑏𝑟𝑒𝐸𝑡𝑠𝑍𝐸
𝑛𝑏𝑟𝑒𝐸𝑡𝑠𝐸𝐶
Measures the weight of the
establishment in each EZ (nºEtsZE)
in relation to total employment in
the sector (nºEtsEC).
Density of
establishments
𝐷𝐸𝑡𝑠 = 𝑛𝑏𝑟𝑒𝐸𝑡𝑠𝑍𝐸
𝑆𝑍𝐸
Obtained by dividing the number
of establishments in a spatial unit
(nºEtsZE) by the surface area of
the latter (SZE). Thus, it
corresponds to the number of
establishments per km², which
makes it possible to assess the
economic attractiveness of the
territories.
Moran's I
The Moran I-statistic measures the
spatial distribution of
jobs/establishments. With R the
number of employment areas, wij
the weights of the spatial
weighting matrix, yj corresponding
here to the density of
establishments; s corresponds to
the circular activity sectors
analysed (EC package, responsible
consumption, extension of the life
of products and recycling and
recovery of waste).
