“Product as a Service” Business Model in the Context of the Development of a Digital Circular Economy: The Transition to a Circular Economy

Abstract

The COVID-19 pandemic has brought additional threats to the achievement of sustainable development goals from the health, economic and social crisis. In a dominant linear economy, achieving zero emissions and waste targets and enhancing sustainability in general is difficult. Therefore, the transition to a circular economy model, which has been actively developing in theory and practice in the last decade due to significant environmental, economic and social benefits, is of acute relevance. The development of the circular economy is supported by digital technologies that optimize costs and help implement circular business models into practice. The article focuses on the product as a service business model, which is the first step towards the transition to a circular economy. Product-as-a-service finds application in practice among leading companies and brings significant positive effects for producers, consumers and helps to achieve the goal of sustainable development.