Enhancing the circular and modified linear economy: The importance of blockchain for developing economies

While a circular economy is increasingly being adopted in developed economies, with multinational corporations progressively adopting measures related to it, our knowledge of the reality in developing economies remains limited. Moreover, while new technologies, such as blockchain, might have important features that could impact circular economy frameworks, particularly in developing economies, their practical application remains to be seen, and academic literature is also scarce. This research addresses this gap and aims to provide conceptual clarity on how blockchains can be used in both circular and modified linear economy frameworks and the implications for social, environmental, and economic welfare. In order to do this, we have used two case studies from India to illustrate the application of this concept through a theoretical model based on Nobel Laureate Elinor Ostrom's seminal work regarding the eight design principles involving people's participation in protecting the commons. Merging the circular economy, blockchain, and Ostrom's seminal work, we advance a conceptual framework that allows us, from a holistic perspective, to create incentives and penalties for the different agents involved in the waste cycle, including the producers.