EFS Consulting
02/04/2025

Linear Economy: The Model of the Throwaway Society

The throwaway society drives resource waste and environmental problems to the extreme – this is no longer sustainable. But why does our economy still operate this way, and what sustainable alternatives are available? In this Insight will be discussed why the linear economy is no longer viable, the challenges it poses, and how the circular economy offers new opportunities as a forward-looking model.

What is a linear economy? 

Definition and principles of the linear economy 

The linear economy, characterized by the “Take-Make-Dispose” principle, is based on the extraction of natural resources, production and use of products, and their subsequent disposal. This model assumes that raw materials are infinitely available, and that waste does not pose long-term issues. Reuse and recycling play minimal roles, with a strong emphasis on new production. Products are often designed for limited usability, lacking repairability or reusability. 

The linear economy increases dependence on finite resources and largely ignores the need for sustainable resource use. According to the Circularity Gap Report 2022, global primary resource consumption has nearly doubled in the last 50 years and continues to rise. This system also causes significant environmental damage and climate issues. 

Origins and economic relevance 

The linear economy emerged during the Industrial Revolution, driven by the rising demand for consumer goods and a focus on efficiency and mass production. Technological and manufacturing advances propelled this development, shaping a culture of disposability. While this model once fueled economic progress, its limitations have become evident through environmental problems and resource shortages. 

 

Characteristics of the linear economy 

The linear economic model is characterized by: 

  • Disposable mindset and short product lifespans: Many products are neither repairable nor recyclable, leading to shorter usage durations and increased demand for new production. 
  • High resource consumption: Natural resources are extracted in large quantities and disposed of after use, further straining the environment. 
  • Dependence on finite resources: The lack of mechanisms for material recovery exacerbates this dependence, creating long-term supply risks. 
  • Planned obsolescence: Products are deliberately designed for rapid replacement to stimulate consumption. 
  • Environmental impact: High CO₂ emissions, massive waste generation, and ecosystem pollution worsen the global climate crisis. 

The consequences are severe: depletion of natural resources, escalating water scarcity, and accelerated climate change due to greenhouse gas emissions. Ecological systems and societal structures, which depend on stable environmental conditions, are particularly vulnerable. 

 

Examples of the linear economy 

Certain market segments with particularly resource-intensive value chains demonstrate a greater need for raw materials, significantly contributing to resource waste under the linear economy. 

Consumer goods

The fast fashion industry produces clothing in increasingly shorter cycles at low costs. A significant portion of unsold items ends up in landfills. Additionally, short fashion cycles harm both the environment and labor conditions in production countries. 

Electronics industry

Planned obsolescence in the electronics sector results in enormous e-waste and the loss of valuable resources like gold and rare earths. Many devices are non-repairable, exacerbating disposal issues.

Construction industry

The construction sector consumes more than half of all resources in Austria. Resource-intensive practices and a lack of recycling concepts make this industry a central driver of the linear model. 

Food industry

Single-use packaging and food waste, often despite sufficient shelf life, highlight the inefficiency of the linear economy. Millions of tons of edible food are discarded annually. 

 

Linear economy vs. circular economy 

The circular economy represents the antithesis of the linear model. It focuses on a regenerative system that keeps materials in circulation as long as possible while minimizing waste. Key differences include: 

  • Resource utilization: The circular economy efficiently uses resources, avoids waste, and recycles materials. 
  • Product lifecycle: Products are repairable and reusable, significantly extending their lifecycle. 
  • Environmental impact: Reduced CO₂ emissions and less waste alleviate environmental pressures. 
  • Objective: Prioritizing sustainable value creation and resource conservation. 

The following table compares the main features of the two economic models: 

Aspect Linear Economy Circular Economy 
Economic Model  Relies on new production & short-term profits  Focuses on resource efficiency & long-term value 
Resource Use  Resources are used once and discarded  Resources are reused, avoiding waste, and recycled 
Product Lifecycle  Products are hard to repair or reuse  Products are repaired, reused, and kept in circulation 
Waste  Disposed in landfills or incinerated  Minimized waste; materials recycled and reused 
Environmental Impact  High CO₂ emissions, massive waste, and pollution  Reduced impact through less resource consumption 
Resource Consumption  High consumption of primary raw materials  Lower consumption with reuse and renewable resources 
Goal  Maximize production and consumption  Minimize resource use and promote sustainability 
Perspective  Unsustainable; hits ecological and economic limits  Enables sustainable development for future generations 

Why is the linear economy being criticized? 

The linear model is unsustainable in the long term. Its environmental impacts are well-known, prompting justified criticism. Urgent action and the development of sustainable alternatives are essential to address these challenges. 

Global goals like the Paris Agreement, the UN Sustainable Development Goals, and the EU Green Deal emphasize the necessity for change. Societal pressure on businesses to act environmentally consciously is also growing. To promote the transition to a circular economy, the European Commission launched the Circular Economy Action Plan in 2015, followed by Austria’s national circular economy strategy in 2022. This strategy aims to reduce resource consumption, avoid pollution and waste, increase value creation and resource efficiency while minimizing negative social impacts on people. 

Key measures include adapting national laws to align with European guidelines, improving waste management laws, and establishing regulatory frameworks for uniform secondary raw material use. Targeted promotion is also required to make sustainable products more attractive. As long as the costs of environmental pollution and wasting resources are not adequately priced in, companies that voluntarily act sustainably often find themselves in an economically disadvantageous position. To counteract this, clear legal requirements, financial incentives, support programs and increased consumer awareness are necessary. 

Companies face increasing pressure to act transparently and sustainably, guided by regulations like the Sustainability Reporting (CSRD), the Supply Chain Directive (CSDDD) or the Ecodesign Regulation (ESPR). 

 

How can the transition to a climate-neutral circular economy be accelerated? 

A complete transformation to a climate-neutral circular economy requires a holistic approach involving political measures, regulations, technological innovation, and societal awareness. Through targeted strategies and incentives, sustainable production and consumption models can be established and implemented. The key lies in a comprehensive approach that considers a product’s entire lifecycle. 

 

Conclusion 

The linear economy, marked by short-lived consumption, high environmental impact, and irresponsible resource use, has reached its limits. Given finite resources and the climate crisis, a fundamental rethinking is unavoidable. The circular economy offers a sustainable alternative, fostering long-term economic and ecological stability through resource conservation and waste reduction. Transitioning to circular models is essential to securing a liveable future for coming generations. 

Contact EFS Consulting to learn more about circular economy concepts and receive expert support in sustainable economic strategies. 

 

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