Open Access Journal Article

Reconciling Circularity and Growth: The Model of Qualitative Economic Growth

by Sergio Focardi a  and  Frank J. Fabozzi b,*
a
DIME, University of Genoa, Genoa, Italy
b
Carey Business School, Johns Hopkins University, Maryland, USA
*
Author to whom correspondence should be addressed.
JEA  2025 4(2):105; https://doi.org/10.58567/jea04020008
Received: 24 December 2024 / Accepted: 8 March 2025 / Published Online: 19 March 2025
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Abstract

In response to the twin environmental crises of climate change and resource depletion, the circular economy has emerged as a key strategy to reduce waste, minimize the extraction of virgin materials, and promote reuse, repair, and recycling. However, the circular economy, as currently conceived, does not inherently support continuous economic growth in the conventional sense. At the same time, modern societies — grounded in ideals of progress, innovation, and rising living standards — rely on economic growth to sustain social stability, employment, and investment. In this paper, Focardi and Fabozzi argue that integrating qualitative economic growth with circularity offers a viable pathway to decoupling economic progress from the depletion of natural resources. Qualitative growth refers to economic progress driven by increased quality, functionality, and complexity of products, services, infrastructure, and institutions rather than the sheer output volume. To illustrate how qualitative growth and circularity can complement each other in practice, the paper highlights initiatives in Ljubljana, Slovenia, Vitoria-Gasteiz, Spain, and Amsterdam, Netherlands, where circular economy strategies have been combined with urban greening, infrastructure regeneration, and resource-efficient policies to enhance both environmental sustainability and quality of life.

Keywords: Circular Economy; Qualitative Growth; Economic Complexity; Sustainability; Decoupling of Economic Growth from the Use of Natural Resources;
Copyright: © 2025 by Focardi and Fabozzi. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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APA Style
Focardi, S., & Fabozzi, F. J. (2025). Reconciling Circularity and Growth: The Model of Qualitative Economic Growth. Journal of Economic Analysis, 4(2), 105. doi:10.58567/jea04020008
ACS Style
Focardi, S.; Fabozzi, F. J. Reconciling Circularity and Growth: The Model of Qualitative Economic Growth. Journal of Economic Analysis, 2025, 4, 105. doi:10.58567/jea04020008
AMA Style
Focardi S, Fabozzi F J. Reconciling Circularity and Growth: The Model of Qualitative Economic Growth. Journal of Economic Analysis; 2025, 4(2):105. doi:10.58567/jea04020008
Chicago/Turabian Style
Focardi, Sergio; Fabozzi, Frank J. 2025. "Reconciling Circularity and Growth: The Model of Qualitative Economic Growth" Journal of Economic Analysis 4, no.2:105. doi:10.58567/jea04020008

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ACS Style
Focardi, S.; Fabozzi, F. J. Reconciling Circularity and Growth: The Model of Qualitative Economic Growth. Journal of Economic Analysis, 2025, 4, 105. doi:10.58567/jea04020008
AMA Style
Focardi S, Fabozzi F J. Reconciling Circularity and Growth: The Model of Qualitative Economic Growth. Journal of Economic Analysis; 2025, 4(2):105. doi:10.58567/jea04020008
Chicago/Turabian Style
Focardi, Sergio; Fabozzi, Frank J. 2025. "Reconciling Circularity and Growth: The Model of Qualitative Economic Growth" Journal of Economic Analysis 4, no.2:105. doi:10.58567/jea04020008
APA style
Focardi, S., & Fabozzi, F. J. (2025). Reconciling Circularity and Growth: The Model of Qualitative Economic Growth. Journal of Economic Analysis, 4(2), 105. doi:10.58567/jea04020008

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