Circular Economy and Beyond: Econometric Modeling of Regenerative Business Practices

Abstract

The transition from a linear economy to a circular economy represents a critical shift in addressing global sustainability challenges. While circular economy principles—such as waste reduction, resource efficiency, and product lifecycle extension—offer significant promise, integrating these principles into regenerative business practices requires a more nuanced approach. This study explores the econometric modeling of regenerative business practices within the framework of the circular economy, examining how businesses can create systems that not only reduce waste but also restore and regenerate natural and social capital. By leveraging advanced econometric techniques, this research identifies key drivers, evaluates economic and environmental trade-offs, and quantifies the long-term impacts of regenerative strategies. Using a combination of time-series analysis, panel data modeling, and machine learning integration, the study investigates how regenerative practices influence firm performance, stakeholder engagement, and broader economic systems. Case studies across industries are employed to validate the proposed models, offering actionable insights for policymakers and business leaders. The findings underscore the transformative potential of aligning economic incentives with sustainability goals, advancing the discourse on regenerative business practices as a cornerstone for a resilient global economy.