The transition towards a circular economy is being increasingly envisaged in Europe. Increased utilisation of secondary construction aggregates poses a great opportunity in this regard given its potential to avoid waste disposal, natural resource extraction, and reduce costs. Nevertheless, the Swedish construction aggregates market is dominantly characterised by primary aggregates utilisation. This study employs a qualitative approach to analyse the Swedish construction aggregates market from the user perspective in order to identify the challenges of increased utilisation of secondary aggregates. The dominant and systematic utilisation of primary aggregates is chiefly driven by market processes allowing economic advantages and convenience for the users in doing so, whereas the situational and non-systematic utilisation of secondary aggregates is opportunistically driven by different actors in order to seize opportunities such as avoided costs and improved environmental performance. The realisation of increased secondary aggregates utilisation needs to be first facilitated via changes to the institutional structure that makes such materials a priority issue for the supply chain actors, which necessitates national-level policy interventions and supply chain actor collaborations. Second, the competitiveness of secondary aggregates needs to be lifted to a comparable state to that of primary aggregates, which necessitates the development of specific sectoral application standards and vertical integration of secondary aggregates supply by construction corporations.

The recycling-industry residue called shredder fines (fines) presents a disposal problem,incurs handling costs, and reduces resource efficiency in general. This study aims to identify thechallenges of facilitating fines valorisation in the Swedish context. Hence, the shredding companyperspective of the underlying factors that sustain the current practice of fines management isestablished by studying the case of a specific shredding company using semi-structured interviews.Utilisation in landfill covering offers the company a secure outlet and a legislatively-compliant lowcostdisposal option for fines. Additionally, lack of specific regulatory standards, unfavourableregulation of waste reutilisation, and lack of market demand for secondary raw materials (SRMs)create disincentives to develop valorisation options. Also, the lack of corporate-level focus on theissue has resulted in a lack of organising for and capacities to improve the handling of the material.Initiating fines valorisation needs to challenge these prevailing circumstances and thus necessitatesgovernmental interventions. Simultaneously, favourable conditions for SRM utilisation are needed;that is, established outlets for fines-derived SRMs and clear regulatory and market playing rulesthat reduce uncertainty and investment risk of developing tailored processes for upgrading andresource recovery need to be available.

Millions of tonnes of shredder fines are generated and disposed of globally, despite compelling reasons for its recovery. The absence of a review of previous literature, however, makes it difficult to understand the underlying reasons for this. Thus, this study attempts to investigate and assess what, to what extent, and in what ways shredder fines have been addressed in previous research. In doing so, guidelines are drawn for future research to facilitate the valorisation (upgrading and recovery) of shredder fines. Previous research concerning shredder fines was identified with respect to three main research topics. The material characterisation studies are predominantly confined to the occurrence of metals due to their recovery and contamination potential. The process development studies have often undertaken narrowly conceived objectives of addressing one resource opportunity or contamination problem at a time. Consequently, the full recovery (the retrieval of valuable resources and the bulk-utilisation as substitute material) potential of shredder fines has been largely overlooked. The main limitation of policy and regulation studies is the absence of in-depth knowledge on the implications of governmental waste- and resource-policies (macro-level) on actors’ incentives and capacities (micro-level) for fines valorisation, which is necessary to understand the marketability of fines-derived resources. Undertaking a systems perspective is the key to recognising not only the different aspects within the individual research topics but also the inter-relations between them. It also facilitates the internalisation of the inter-relations into topical research.

The lack of process development based on a comprehensive understanding of the material characteristics and the marketability of recoverables is the primary reason why the valorisation of shredder fines has not been realised in practice. In response, a systematic approach was undertaken consisting of 1) strategic sampling and material characterisation, 2) establishing gate and regulatory requirements of potential valorisation applications, and 3) initial feasibility assessment of the selected applications, to guide future research.

The material was sampled over ten weeks in order to obtain both average values and variations of the physical and chemical composition. Thus weekly, primary fractions and sieved fractions ZA (7.10–5.00 mm), ZB (5.00–3.35 mm), ZC (3.35–2.00 mm), ZD (2.00–0.25 mm), and ZE (0.25–0.063 mm) were prepared, and analysed, and benchmarked against the requirements pertaining to five potential applications. The mercury and aluminium concentrations are the biggest challenge in copper smelting and only ZA and ZB show significant potential. Energy recovery is limited to ZA, ZB, and ZC, provided the chlorine and metals concentrations are decreased. Regarding the recovery as bulk-material in construction, the reduction of the metal content would likely be a pre-requisite.

The utilisation of fines in the individual applications would either leave a significant amount of fines un-valorised or overlook the recovery of valuable resources. The upgrading of the material to suit the different applications would also require addressing multiple material constraints simultaneously. Therefore, realising the full resource potential of shredder fines would require the integration of different upgrading and recovery processes.

By merging findings from transition studies with recent literature on market-shaping, this paper outlines a conceptual framework that describes the shaping of sustainable markets. The framework comprises three critical processes: enabling exchange practices, proving the system and constructing the narrative. Individually, these processes generate different kinds of value – traded, demonstrated and expected value – and the value output from each process serves as input to the other two processes. Hence the value streams link the processes together. We illustrate the framework by analyzing market-shaping processes for biogas in Sweden. The case analysis shows how public and private actors have engaged in a multitude of activities that have built up the market-shaping processes. The analysis highlights the recursive nature of sustainable market-shaping, showing how key actors must repeatedly respond to tensions resulting from growth and aspirations of growth.

Decisions on organizational boundaries are critical aspects of manufacturing firms’ business strategies. This article brings together concepts and findings from industrial ecology and business strategy in order to understand how manufacturing firms engage in initiatives to facilitate recycling of process wastes. Based on a distinction between waste recovery and use of the recovered resources, the article introduces a typology of four different strategies: Closed, Outsourcing, Diversification, and Open. Each strategy has a unique set of organizational boundaries and is associated with different motives and benefits for the manufacturing firm. The typology of strategies provides a conceptual contribution to assist industrial managers in strategic decision-making, and to support further studies on organizational boundaries in industrial ecology research.

Background and research question

Presenting possible solutions to environmental problems such as air quality, greenhouse gases, nutrient recirculation, organic waste and wastewater management, biogas is highly relevant for sustainability transitions. Besides biogas producers, the production and use of biogas engages actors from several sectors, including energy and gas distribution, waste management and wastewater treatment, agriculture, vehicles and transport.

The formation of markets for biogas depends on policy interventions at different levels, from the local municipality via the national government to the EU commission. By contrast to other European countries, which tend to subsidize biogas production, the Swedish government has the intention to stimulate demand and to favor the use of purified biogas (biomethane) as a vehicle fuel. While biomethane currently has a strong position as an alternative to fossil fuels in certain niches (notably public transport buses), the Swedish biogas sector faces challenges to reach beyond these narrow market segments.

Adopting a market constructivist perspective, this paper will analyze the formation of markets for biogas in Sweden. The following research question will guide the analysis: What characterizes market formation in this case and based on that, what is possible to learn about market formation in relation to sustainability transitions? 

Theory

Marketing scholars increasingly consider market formation as on-going processes, which a multitude of actors influence through their strategies, activities and capabilities. To understand market formation it is therefore necessary to analyze activities among a wider array of actors than merely producers and their (potential) customers.

Following a constructivist perspective, the offer is a core element in market formation. The offer describes the meanings and qualifications that actors impose on the object that is for sale. These meanings and qualifications constitute boundaries between actors and goods. Different actors engage to define the object, as well as its meanings, qualifications and potential value. Without a clear view of what is being exchanged, market formation will be difficult. Market formation also includes institutions that set boundaries and rules for the market. These are neither static, nor pre-conceived; instead, they are shaped and acted upon. Actors influence institutions through dynamic and interactive processes. 

Method

The paper combines quantitative and qualitative sources of data to study the Swedish biogas sector. The paper presents detailed data on production and use of biogas in Sweden 2010-2017. This quantitative data is complemented by qualitative data from interviews with representatives from key actors as well as secondary data from industry reports and other written sources. 

Findings

The multitude of actors involved complicates market formation for biogas. Different meanings and qualifications are attributed to the offer. Whereas it is possible to perceive biogas as a relatively simple product – a fuel – it is also possible to perceive it as a complex system that may help solving various societal and environmental problems. Different perceptions of the offer have different implications for market formation. Depicting biogas as a complex system implies that the offer will comprise a number of different qualifications. The realization of such a complex system depends on the bonding of various actors. Once established, the bonds will protect biogas from competition. By contrast, depicting biogas as a fuel means that the value of biogas will be assessed in relation to fuel prices. Qualification will thus depend on cost competitiveness vis-a-vis other fuels.

Our analysis suggests that although the contrasting perceptions of biogas cause tensions between the actors involved, the different qualifications complement each other in the market formation process. Various environmental and societal benefits makes it possible for actors argue for institutional reforms to help biogas become cost competitive, and increased competitiveness makes it attractive to establish new biogas systems.