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Identifying effective institutions for China’s circular economy: Bottom-up evidence from waste management

The present article centres on institutions, that is, systems of rules that guide behaviour and interaction of socio-economic actors, and their role in advancing China’s circular economy (CE), particularly in waste management (WM). Since the early 2000s, state and non-state actors in China have begun to explore CE ideas in WM resulting in a multitude of related patterns and schemes. In regard to why such systems exhibit different degrees of effectiveness, it appears that much is determined by the institutional arrangements within. Based on several years of field research in China, the article identifies and analyses key institutional ingredients for effective outcomes. Methodologically, these components are identified via an analytical model incorporating WM performance indicators and a framework for assessing interest inclusiveness. Empirically, the analysis is applied to case study findings on the informal and semi-formalised recycling sector in Beijing and Changchun. The resulting findings are synthesised into an evaluation matrix: it indicates which effective informal institutional elements in waste collection and pre-processing allow for a translation into formal systems. The so-demonstrated convertibility indicates a substantial potential for the innovation of current formal WM systems in urban China.