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for the longest period of time as possible. The goal of the circular model is to close flows of

materials into circles and cycles that never end.

Products and materials are thus preserved in use for as long as possible. When they reach the
end of their use, they are subsequently recycled and returned to the circle. A certain amount of
residual waste is created here, but it should be minimal (Nordic Circular Economy Playbook,

2021). The model of a circular economy is based on the circle of raw materials-design-production-
distribution-consumption-collection-recycling-raw materials.
For clarification, it is the opposite of the present and primary economic model, the linear economy.
This is based upon the chain of raw materials-production-distribution-consumption-waste. Most
products are not subsequently recycled after completing their life cycle, and thus a large amount

of waste ends up in dumps.
Circle Economy (2021) claims that, unfortunately, only 8.6% of the world is circular. This means
that only this small percentage of all various input materials (such as minerals, fossil fuels and

biomass) is returned to the cycle.

Sharing economy

The concept of a sharing economy is based on the mutual sharing of services and goods between
individual actors. This exchange tends to be implemented via internet platforms. The
technological boom and digitization of society thus allows for the advancement of such sharing.
The most common areas that a sharing economy affects are the sectors of transport and
accommodation services. The basic areas of a sharing economy thus include accommodation,
shared transport, vehicle sharing, bicycle sharing, shared education, shared workspaces, time

banks, microlabor, exchange of goods, sale of used goods and financial services (such as
crowdfunding, peer-to-peer financing).
Thus, via its principle, a sharing economy can be seen as a part of the sustainable approach (it
can be demonstrated precisely using the example of shared transport). A sharing economy can
be understood as an economic system in which assets or services are shared among private

individuals either for free or for a fee, usually via the internet” (Oxford Dictionaries 2018).
According to Koopman et al. (2014), a sharing economy created values using several
fundamental methods:

• the first essential factor is the opportunity to utilize an unused asset, which as such
is deemed to be “dead capital” or unused capital,

• the combination of users and providers, and hence of supply and demand, makes the
market more competitive and specialized,

• the range of business is expanded, and costs (such as transactional costs) are
decreased,

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