Obsolescence as a Governance Object: A Circular Economy Framework for Regulated Infrastructure

Georgios Pardalis; Jenny Palm

doi:10.55845/joce-2026-41392

Authors

Georgios Pardalis IIIEE, Lund University Author https://orcid.org/0000-0001-7143-8198
Jenny Palm IIIEE, Lund University Author https://orcid.org/0000-0001-7694-7397

DOI:

https://doi.org/10.55845/joce-2026-41392

Keywords:

Circular Economy Policy, Energy Transition, Energy Infrastructure, Infrastructure Governance, Asset Lifetimes, Obsolescence Governance

Abstract

Circular economy (CE) policy has largely developed around product markets, where ecodesign, repairability requirements, and extended producer responsibility now form a substantial regulatory layer. In regulated energy infrastructure, where replacement decisions are shaped by depreciation schedules, regulatory review cycles, and procurement rules, these tools have made limited progress. This perspective aims to explain why, and to identify what would be required to address it. Developing a conceptual argument from the electricity sector and generalizing it to regulated network infrastructure, and drawing on recent work on smart grid governance and the economics of infrastructure regulation, the paper distinguishes two modes through which obsolescence is produced. In product markets it is openly recognized and targeted by policy; in regulated infrastructure it is generated by institutional mechanisms whose mandates do not include lifecycle outcomes, leaving the premature replacement of functioning assets untreated as a governable issue. The paper shows that this institutional mode is structurally resistant to self-correction, and argues that bridging the gap requires defining obsolescence as an explicit governance object, with a clear institutional locus and a mandate for lifecycle outcomes, rather than extending existing CE instruments.

Author Biography

Georgios Pardalis, IIIEE, Lund University

I am a tenure-track Assistant Professor at IIIEE, Lund University. My research examines how governance arrangements shape the pace, equity, and material sustainability of energy transitions in the built environment and energy systems.

A central strand of my work focuses on large-scale energy renovation. Through research on One-Stop Shop (OSS) models in Sweden and Europe, I conceptualize them as governance instruments that coordinate actors, redistribute risks, and enable decision-making. This work contributed to the establishment of Sweden’s first OSS initiative for residential renovation.

I also study sufficiency in the building sector, exploring how governance, design, and institutional incentives can move beyond efficiency toward reducing absolute energy demand across building lifecycles.

More recently, I have extended this perspective to energy infrastructures through the concept of Circular Grid Governance, integrating circular economy, lifecycle thinking, and energy justice. My work combines interdisciplinary approaches to support low-carbon, socially inclusive, and materially sustainable transitions.

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