The Malignant Circle of Circular Economy

Marcos Ferasso

doi:10.55845/joce-2025-3318

Authors

Marcos Ferasso Lusófona University; Universidad Autónoma de Chile Author https://orcid.org/0000-0002-2907-9133

DOI:

https://doi.org/10.55845/joce-2025-3318

Keywords:

Criminal Ecosystems, Illicit Circular Practices, Supply Chain Traceability, E-fencing Networks, Counterfeit Upcycling

Abstract

While the Circular Economy (CE) is widely regarded as a strategy for sustainability, little research has examined how its principles are distorted and exploited by criminal ecosystems. This study investigates the deviant appropriation of CE practices—such as refurbishing, recycling, and reselling—by organized crime networks, conceptualized as the “malignant circle” of the CE. Using a qualitative approach, the paper synthesizes empirical evidence from global case reports and the literature to analyze how illicit actors distort CE flows to profit and fund criminal activities. The findings reveal six overarching criminal practices that subvert CE principles, including e-fencing, illegal waste dumping, and counterfeit upcycling, perpetuating criminal ecosystems while undermining sustainability goals. A conceptual model and structured typology are introduced to illustrate the feedback loops that sustain this malignant system. The study contributes to the CE and criminology literature by highlighting policy gaps and discussing solutions to disrupt illicit circular flows, with implications for traceability, digital governance, and consumer education.

Author Biography

Marcos Ferasso, Lusófona University; Universidad Autónoma de Chile

Dr. Marcos Ferasso holds a bachelor's degree and specialization degree in business management (Unoesc/Brazil), an international specialization degree in Local Development (ILO-UN/Italy), a master's degree in administration (UFRGS/Brazil) with a master's internship (Euromed-Marseille Ecole de Management/ France), and a Ph.D. in administration (UFPR/Brazil) with a doctoral internship (Forsyth Technical Community College/USA). His doctoral degree was recognized in Portugal by the University of Aveiro. Dr. Ferasso completed four post-doctoral research fellowships at Faculdade Meridional (Brazil) with a post-doctoral internship (KEDGE Business School/France), at KEDGE Business School, at the Università degli Studi di Padova (Italy), and at the Pontifical Catholic University of Paraná (Brazil) with a post-doctoral internship (Università degli Studi di Ferrara/Italy). Dr. Ferasso is an assistant professor in business management at Universidade Lusófona (Portugal), an associate researcher at Universidad Autónoma de Chile (Chile), and a visiting professor at Pontificia Universidad Catolica del Peru (Peru).

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