circular economy research paper

The Circular Economy

Research about the circular economy is dominated by engineers, architects, and social scientists in fields other than economics. The concepts they study can be useful in economic models of policies – to reduce virgin materials extraction, to encourage green design, and to make better use of products in ways that reduce waste. This essay attempts to discuss circular economy in economists’ language about market failures, distributional equity, and policies that can raise economic welfare by making the appropriate tradeoffs between fixing those market failures and achieving other social goals.

I’m grateful for comments and suggestions from Madhu Khanna, Tom Kinnaman, Hilary Sigman, and Becca Taylor. This paper is invited for publication by the editors of the Encyclopedia of Energy, Natural Resource, and Environmental Economics (second edition). All remaining errors are my own. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.

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Management of Environmental Quality

ISSN : 1477-7835

Article publication date: 17 February 2021

Issue publication date: 11 May 2021

This paper aims to examine the current status and trends in circular economy (CE) research. The state of CE research is assessed by critically examining the field by considering diverse dimensions.

Design/methodology/approach

The systematic literature review (SLR) of CE research articles is analyzed using the content analysis methodology. The articles are selected from the Scopus database containing the keyword “Circular economy” in its title, abstract and keywords. In total, 587 research articles published on CE in various reputed peer-reviewed journals over 15 years (2005–2020) are selected for review.

The research in the domain of CE is in the beginning phase. It has numerous quantitative modeling opportunities, value creation and propositions aspects and application in real-life case problems. One of the significant findings is that the CE research field is more inclined toward the implication of the empirical qualitative research. The identified research gaps and future opportunities could provide further direction to broaden CE research.

Research limitations/implications

The review focuses on publications published in peer-reviewed journals in the English language only. It restricts the recognition of relevant articles published in conference proceedings and languages other than English.

Originality/value

This research study will provide a deeper understanding of CE research's existing status and highlights the research trends, gap and its applicability in real-life case problems and setting up future research directions in the CE field.

• Circular economy
• Systematic literature review
• Content analysis
• Sustainable development
• Sustainability

Lahane, S. , Prajapati, H. and Kant, R. (2021), "Emergence of circular economy research: a systematic literature review", Management of Environmental Quality , Vol. 32 No. 3, pp. 575-595. https://doi.org/10.1108/MEQ-05-2020-0087

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Journal of Circular Economy

An applied scholarly journal on circular economy.

About the Journal

The Journal of Circular Economy publishes circular economy research which provides practical advice for businesses, policymakers, and civil society to accelerate the transition towards a more circular economy. Specific subject areas include, but are not limited to:

• Circular business models, circular start-ups, circular business model experimentation
• Dynamic capabilities for a circular economy
• Circular supply chains, reverse logistics
• Circular economy policies and governance
• Barriers and enablers to the circular economy
• Sustainability transition theory and circular economy
• Social, environmental and economic impacts of circular economy
• Circular rebound
• Circular degrowth
• Circular economy terminology

And more…

Any disciplinary approach is welcome. Any methodological approach is welcome.

Publication formats

Articles published in the Journal of Circular Economy aim to be particularly succinct to reach both academic and practical audiences. Accordingly, no article published in this journal exceeds 6,000 words; and any article published in the Journal of Circular Economy must include implications for circular economy practice. The following types of articles are published in Circular Economy:

Research article: Standard research papers of 3,500 – 6,000 words in length, excluding tables, illustrations, and references, in which hypotheses are tested and results reported.

Review: Articles which summarize the state-of-the-art circular economy research in a particular sub-field. Narrative reviews, meta-syntheses and meta-analyses are considered. 4,500 – 6,000 words in length, excluding tables, illustrations and references.

Perspective: Papers in an “op-ed” style that share a particular perspective on circular economy. Usually 800-1,000 words excluding tables, illustrations, and references.

Any article published in the Journal of Circular Economy is accompanied by an abstract that is ca. 150 words. Suggested structure of Research articles and Reviews: Introduction, theoretical framing, methods, results, discussion, recommendations. There is no suggested structure for Perspectives.

We encourage you to publish any original data that your article is based on alongside your article.

Circular Economy – Formatting information for authors

Publication Fees

The Journal of Circular Economy aims to be a low-cost publisher. We continuously attempt to undercut publication fees of comparable academic journals also publishing on circular economy by at least 70%. All journal operations are financed by Article Processing Charges (APC model) which vary depending on the article format and an unconditional grant by Roskilde University.

Our current publication charges for authors (applicable only upon acceptance of their article):

– Research article: 330 EUR – Review article: 380 EUR – Perspective: 160 EUR

Discounts are possible for students publishing their research with us, for independent scholars and/or authors from the Global South as well as any other authors from groups that are typically marginalized in the academy. Discounts are currently provided on a case-by-case basis.

We kindly ask you to reach out to our editorial team to discuss further details: [email protected]

Peer-Review

This journal operates a double-blind peer-review process. All contributions will be initially assessed by an editor for suitability for the journal. Papers deemed suitable are then sent to a minimum of one independent expert reviewer to assess the scientific quality of the paper. Reviewers are encouraged to submit their review within seven days upon receipt of the paper. We are the very first academic journal, as far as we are aware, that pays an honorarium to its reviewers. Authors are asked to revise their paper, if possible, within fourteen days. The Journal of Circular Economy considers iteration as central to hone the quality of academic work. Multiple rounds of review are thus possible and, in our view, also desirable. We encourage authors to already publish their work in preprint servers such as SocArXiv, while it is under review with the Journal of Circular Economy.

We evaluate submitted manuscripts based on their methodological rigor and high ethical standards, regardless of perceived novelty. Accordingly, we publish works that are replication studies as well as studies that report negative and null results. Overall, the aim of the Journal of Circular Economy is to help authors to improve their manuscript so that it becomes publishable in a respected academic outlet. Accordingly, the Journal of Circular Economy is not a gatekeeper to publishing circular economy research, but an ally to those dedicated to circular economy scholarship and practice. Articles are published once accepted. This also includes articles that are part of a special issue.

For questions about the editorial process, please contact: [email protected]

Open Access

The Journal of Circular Economy applies the Creative Commons Attribution (CC BY) license to works we publish. Under this license, authors agree to make articles legally available for reuse, without permission or fees, for virtually any purpose. Anyone may copy, distribute, or reuse these articles, if the author and original source are properly cited.

The Journal of Circular Economy is indexed in the Directory of Open Access Journals (DOAJ) and is currently also registering with the Web of Science (WoS) database. Additional indexing will follow in the next couple of months.

Declaration of Competing Interests

Corresponding authors, on behalf of all the authors of a submission, must disclose any financial and personal relationships with other people or organizations that could inappropriately influence their work. Examples of potential conflicts of interest include employment, consultancies, stock ownership, honoraria, paid expert testimony, patent applications/registrations, and grants or other funding.

DSRPT is an education technology start-up in stealth mode. Circular Economy is our first venture. We are on a mission to disrupt higher education. If you wish to learn more about us, drop us a message: [email protected]

Circular Economy and Sustainability

Circular Economy and Sustainability is an international peer‐reviewed journal that presents a forum for experts such as management scientists, engineers, natural scientists, decision makers, entrepreneurs, economists, social and political scientists, and industry experts to discuss in a systematic way the concepts of Circular Economy (CE) and Sustainability (S), in order to bring to the forefront a new and interdisciplinary approach of these two concepts. The journal’s aim is to promote the innovation process from technological solutions to economic, social and environmental solutions in the context of circular economy and sustainability. The journal welcomes papers that integrate at least two dimensions of circular economy and sustainability from different scientific fields.

This is a transformative journal , you may have access to funding.

• Alexandros I. Stefanakis
• Ioannis Nikolaou

Latest issue

Volume 4, Issue 1

Latest articles

Sustainable living: young adults prolonging the material life cycle of objects through the appreciation of used furniture, interiors, and building design.

• Minna Autio
• Jaakko Autio

Strategy for Circularity Enhancement in Bioeconomy Sector: A Case Study from Biogas Sector of Nepal

• Navin Kumar Jha
• Brijesh Mainali
• Sunil Prasad Lohani

Circular Economy Matrix Guiding Manufacturing Industry Companies towards Circularity—A Multiple Case Study Perspective

• Leila Saari
• Katri Valkokari
• Federica Acerbi

Clustering the Research at the Intersection of Industry 4.0 Technologies, Environmental Sustainability and Circular Economy: Evidence from Literature and Future Research Directions

• Suman Kumar Das
• Gianmarco Bressanelli
• Nicola Saccani

Circularity Reinforcement of Critical Raw Materials in Europe: A Case of Niobium

• Theresa von Rennenberg
• Devrim Murat Yazan

Journal updates

Special issue by invitation only: socio-environmental footprints in energy, materials, waste and international justice.

The transition from a linear to a circular economy requires a holistic understanding of the long-term sustainability implications associated with the new patterns being implemented. In this context, it is essential to understand the not only the environmental footprints related to different products and services, but also the social impacts. Therefore, this Special Issue aims to disseminate knowledge and generate further analysis.

Special Issue by invitation only: Responsible Consumption and Production

Implementing the UN Sustainable Development Goal 12 (Responsible Consumption and Production) requires a systematic and interdisciplinary approach employing strategies and activities targeting consumption patterns, production competences, technical and social innovation, as well as motivating awareness for responsibility which will change the future of education in alignment with societal development.

This Special Issue will host selected papers presented at the 3rd International Conference on Responsible Consumption and Production (EURECA-PRO Conference 2023) that was held in Chania, Crete, Greece on 26-29 September 2023.

Call for Papers for a Special Issue: Circular Bioeconomy tools and technologies to accelerate the green transition in the Mediterranean

The Special Issue invites papers on the research areas of sustainable production and management of biomass, sustainable water resources and soil management using nature-based solutions, recycling of materials and production of new products, reduction of the environmental footprint in the tourism industry, and also other scientific fields related to Circular Economy and Bioeconomy. As the Special Issue has a specific regional focus, manuscripts should clearly demonstrate the contribution of the study to the green transition of the Mediterranean region.

Published Special Issues Circular Economy and Sustainability

Please find here an overview of published Special Issues in Circular Economy and Sustainability. For forthcoming Special Issues and those still currently open for submissions, please see the individual updates posted here: https://www.springer.com/journal/43615/updates

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• DOI: 10.1002/csr.2885
• Corpus ID: 270758916

The role of blockchain platform in enabling circular economy practices

• Elieber Bragatti Souza , Ricardo Luiz Carlos , +1 author G. Scur
• Published in Corporate Social… 25 June 2024
• Environmental Science, Business, Computer Science

73 References

Drivers and barriers of smart technologies for circular economy: leveraging smart circular economy implementation to nurture companies' performance, blockchain and the transition to the circular economy: a literature review, thematic analysis of circular economy practices across closed-loop supply chains: an institutional theory perspective, digital transformation, financing constraints, and corporate environmental, social, and governance performance, a blockchain non-fungible token-enabled ‘passport’ for construction waste material cross-jurisdictional trading, tokenizing circularity in agri-food systems: a conceptual framework and exploratory study, blockchain-based tokenization and its impact on plastic bottle supply chains, adoption of information and digital technologies for sustainable smart manufacturing systems for industry 4.0 in small, medium, and micro enterprises (smmes), digitalizing circular economy through blockchains: the blockchain circular economy index, regulatory paradigm and challenge for blockchain integration of decentralized systems: example—renewable energy grids, related papers.

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Industrial metaverse: a comprehensive review, environmental impact, and challenges.

1. Introduction

1.1. motivation, 1.2. our contributions.

• Considering the IM architecture, we examined the IM concept and the numerous enabling technologies used to build and experience the IM.
• We explored new and upcoming prevalent use cases of the IM and deployments.
• We explored the impact of the technologies underpinning the IM such as data centers and network infrastructure on the environment.
• We address novel privacy and security risks, as well as outline open research challenges while considering that the IM is based on a strong data fabric.

1.3. Paper Organization

2. methodological approach, 3. industrial metaverse’s architecture, roadmap, and core technologies overview, 3.1. industrial internet of things, 3.2. artificial intelligence.

• Security: The Metaverse presents a number of security risks, including fraud, identity theft, and cyberattacks. AI can monitor user behavior and identify any questionable activities, such as identity theft or malevolent actions.
• Personalization: AI systems are capable of analyzing user data to provide each user with a customized experience. An AI system, for instance, can be trained to learn user preferences for virtual apparel, virtual accessories, and virtual activities and then provide tailor-made suggestions.
• Creating and managing digital entities: AI is utilized in the Metaverse to generate and manage diverse digital creatures, including chatbots, virtual assistants, and NPCs. These entities can interact with users, offering tailored experiences according to their tastes and actions.
• Immersion: Since AI makes realistic physics, lighting, and sound effects possible, it can aid in the creation of more immersive virtual environments. AI systems, for instance, can mimic the behavior of fire, water, and other natural elements, adding realism to the virtual world.
• Real-time translation: AI has the potential to facilitate real-time language translation in the Metaverse, facilitating international collaboration and communication. This could result in the ability of AI to translate spoken languages in the Metaverse in real time, facilitating international collaboration and communication. This has the potential for the establishment of an entirely worldwide virtual community.
• Intelligent NPCs: NPCs are virtual characters that can communicate with players in the virtual world and are managed by the AI of the game. AI algorithms can make it possible for NPCs to comprehend common language and respond appropriately, adding realism and interest to interactions [ 20 ].

3.3. Cross, Virtual, Augmented, and Mixed Reality

3.4. cloud computing.

• Growing usage of cloud computing and the Metaverse across a range of industries: The Metaverse has the potential to significantly impact numerous industries ranging from retail, gaming, entertainment, and healthcare to education. In order to provide the infrastructure required to enable these virtual experiences, cloud computing will be crucial. Thus, in the upcoming years, we should anticipate seeing a rise in the use of cloud computing and the Metaverse in these sectors.
• VR/AR technology developments: The Metaverse relies heavily on VR/AR technology, and as this field continues to progress, more lifelike and immersive digital experiences should be possible. As a consequence of these developments, a stable and expandable cloud infrastructure will be necessary to meet the demanding computational needs of VR and AR.
• The expansion of the creative economy: It is possible that the Metaverse will present chances for artists to make money off of their abilities. In order to give content creators the infrastructure they need to produce and market their work globally, cloud computing will be crucial.
• Improved remote collaboration and work: It is anticipated that cloud computing and the Metaverse would enhance distant collaboration and work, making it possible for teams to operate together in virtual settings with ease. This could result in a workforce that is more adaptable and effective, as well as more productive.
• Privacy and ethical issues: Data privacy, ownership, and security are only a few of the ethical and privacy issues brought up by the usage of cloud computing and the Metaverse. It will be crucial to address these issues as the Metaverse and cloud computing develop in order to guarantee that they are used in an ethical and responsible manner.

3.5. Edge-Computing

3.6. blockchain, 3.7. three-dimensional modeling/scanning.

• Faro Technologies: Faro is a leading 3D scanning company. It provides many software tools, laser scanners, and 3D measuring, imaging, and realization technology.
• Artec 3D: Artec 3D, which is well-known for its portable, handheld 3D scanners, offers solutions for businesses in the automotive, aerospace, and entertainment sectors, as well as for independent producers.
• Hexagon: Hexagon provides high-precision 3D scanning and metrology solutions for sectors including automotive, aerospace, and manufacturing, with a strong emphasis on industrial applications.
• Leica Geosystems: Leica, a member of the Hexagon group, is well known for its precise, high-quality 3D scanning solutions for a range of markets, including building, surveying, and mapping sectors. They have cutting-edge laser scanning technology, such as the Leica BLK series, which makes it possible to seamlessly incorporate places and items from the real world into the Metaverse.

3.8. Digital Twins

4. use cases and deployment.

• In product design: Product design is the process of making physical or digital products. The Metaverse enables designers to have the full autonomy to create products that never existed. For instance, fashion companies like Nike and Balenciaga have created items that, even if they were available to consumers, they might not necessarily choose to wear in real life, but which help them create or define their virtual personas on this platform. Given the nearly endless innovation, designers have never-before-seen opportunities to push the limits of design [ 47 ].
• Improve the manufacturing and production process: Metaverse simulations provide the capability to test several factory scenarios and gain insights from scaling up or reducing production. The provision of optimization opportunities within the facilities through these simulations can be obtained without affecting the manufacturing that is already taking place. Practically, in a smart factory, operators can use Microsoft Dynamics 365 Guides for real-time instructions overlaid on equipment, while IoT sensors collect data on machine performance, quality metrics, and inventory levels. This renders it possible for operators to quickly identify and solve problems, optimize production settings, and enhance the general effectiveness and quality of manufacturing.
• Improve quality control: IoT sensors are deployed for the harnessing of data in manufacturing processes. This facilitates the collection of real-time data from the various equipment and machinery. Subsequently, one can examine data from the production procedures to find flaws or problems that require attention [ 48 ]. Manufacturing companies can streamline processes and boost efficiency by using Metaverse technologies and applications such as VR and AR. For example, Dynamics 365 Guides and Remote Assist can be leveraged for 3D drawing in a real-world environment. Moreover, front-line workers wearing a HoloLens can also annotate their physical space with digital ink, creating an interactive and immersive experience. In the automotive manufacturing industry, BMW workers wear headsets that overlay digital information onto real-world objects. This allows them to visually inspect and identify defects in the components in real time, reducing the risk of defective products reaching the assembly line or being shipped to customers.
• Better warehouse and logistics management: AR can be leveraged to streamline logistics and warehousing procedures by utilizing Metaverse technology. A case in point is that of DHL, a global logistics company that is using augmented reality (AR) headsets to provide their workers with real-time information, such as order details, inventory locations, and picking instructions, overlaid onto their field of vision. This allows their workers to work hands-free and efficiently navigate the warehouse, reducing errors and improving order accuracy.

• Biomechanics—the study of how the bones, muscles, tendons, and ligaments interact and affect an operator’s fatigue—will be applied to all the motions recorded. Subsequent software will replicate the biomechanics of an individual operator carrying out prolonged duties. Health problems can be precisely detected through simulation, and the operator can be fit with personalized protective equipment or bespoke exosuits.
• A digital twin can be created from each operator’s 3D model, allowing for the simulation of authentic factories. Given GM’s massive production staff and the amount of robots in the line, it is critical to determine whether the robots are not impeding operator movements. Before starting the production line, General Motors can ensure that the robots and workers are operating in perfect harmony.
• In real time, simulate and monitor the operator tasks: Precautionary steps can be performed before any work-related illness or accident arises by tracking biomechanics in real time. Businesses may protect the well-being and security of their most valuable asset—humans—with the aid of the IM.
• Massive data collection: Renault Group has created a platform for gathering large amounts of data to feed the IM, a special data capture and standardization solution, and levers that enable the production process to be performed in real-time while gathering data from all industrial sites. Massive data collection will benefit from dynamic spectrum technologies works in [ 82 , 83 , 84 ], and this may perhaps will be extended to smart farming [ 85 ] and cultural heritage [ 86 , 87 ].
• Digital twins of processes: The utilization of DTs is enhanced by supplier data, sales forecasts, quality data, and exogenous data like weather and traffic patterns, among other things. Artificial intelligence also makes it possible to create predictive scenarios.
• Connecting the supply chain ecosystem: Supplier data, sales forecasts, quality data, as well as external data like traffic or weather improve the use of digital twins. Artificial intelligence also makes it possible to create predictive scenarios.
• Ensemble of advanced technologies: Advanced technologies (big data, real time, 3D, cloud, etc.) are converging to speed up this digital transition. In light of the technologies’ convergence required to manage the digital twins and their ecosystems in a resilient manner, the Renault Group has created a special platform [ 88 ].

5. Environmental Impact and Sustainable Development

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• e-Waste: Electronic waste (e-waste) has significantly increased because of the growing need for the latest technology, posing an environmental threat. A case in point is the innovation in cellular phones that has adopted the digital part IM. Innovation is an expensive endeavor that requires much trial and error and produces waste in various forms. The digital part industry can reduce waste, conserve resources, and accelerate innovation cycles by moving the innovation process to the Internet of Medical Things. Faster innovation does, however, result in shorter product lifetimes, which increases waste and obsolescence. Consider the smartphone market, which is expected to sell more than 1.7 billion units by 2021. Since most of these cell phones have replaced older models in this (almost) mature market, there are now over 1.5 billion cell phones worth of e-waste. Innovation is a cause of this replacement as new, eye-catching models were introduced. Innovation must coexist with recycling and reuse because it is essential for business and beneficial to users. The IM, which spans all layers, can play a crucial role in innovation and e-waste management [ 94 ]. This unorganized sector often deprives e-waste of its most advantageous components, exacerbating the real threats posed by e-waste. All electronic waste contains hazardous elements like lead, cadmium, beryllium, mercury, and brominated flame retardants. Incorrect disposal of gadgets and devices increases the risk of these hazardous compounds leaking into water bodies, poisoning the air, and increasing the risk of contamination. Unmanaged e-waste directly affects people’s health and the environment, claims [ 95 ]. As a result of improper e-waste disposal, 45 million kg of polymers containing brominated flame retardants and 58 thousand kg of mercury are currently released into the environment annually. The increasing demand for electronics increases the quantity of outdated and abandoned electronics. Approximately 50 million tonnes of e-waste are produced annually, which is greater than the mass of all commercial aircraft ever manufactured. Rather, considering these factors, it can be inferred that the Metaverse will have a greater negative impact on the environment than a positive one [ 96 ]. However, according to [ 97 ], globally, only 17.4% of electronic waste is recycled, which worsens environmental and health problems, especially in developing nations. An estimated USD 57 billion is lost every year as a result of electronic waste being disposed of, including important raw materials like iron, copper, and gold. By implementing circular models, businesses can reduce their environmental impact and explore new opportunities to address e-waste issues. On the positive, it is important to note that, according to [ 95 ], 52 billion kg of CO 2 -equivalent emissions were avoided and 900 billion kg of ore were not dug during primary mining as a result of the creation of secondary raw material from e-waste recycling.
• Virtual economies and blockchain: The IM’s virtual economies, which are supported by blockchain technologies such as non-fungible tokens (NFTs) and cryptocurrencies, have significant energy needs. Blockchain networks’ energy usage is a major concern [ 98 , 99 ], particularly for those that employ proof-of-work consensus techniques. According to research, mining Bitcoin uses as much energy as small nations, which results in a large carbon footprint approximated to 475 g per kilowatt-hour (gCO 2 /kWh) [ 99 ]. Furthermore, Ref. [ 100 ] estimates that 127 terawatt-hours (TWh) are consumed annually by Bitcoin alone, which is more than several nations combined, including Norway. In the U.S., the cryptocurrency industry emits between 25 and 50 million tons of CO 2 annually, which is comparable to the emissions from U.S. railroads’ diesel fuel usage. It is recommended that GameFi platforms look into eco-friendly options, such as proof-of-stake consensus algorithms, to reduce their carbon footprint and enable the gaming industry to promote sustainable expansion [ 101 ].
• Elimination of pollution-generating activities: Increasingly, with the adoption of the IM, numerous pollution-generating activities are avoided. These activities range from commuting, face-to-face meetings, off-site work events, and transport. Virtual meeting space Gather.Town has over four million users who prefer a virtual space platform that provides a novel approach to organizing online conferences, events, and meetings. Users can engage each other in real time in a 2D environment on the platform virtually as if they were in the same physical space [ 102 , 103 ].
• Reduction in pollution generated by activities: To evaluate the effects of various scenarios on an entity’s energy consumption, such as a city or factory, one can use the Metaverse. To evaluate the effects of various scenarios on energy usage, an entity like a factory can be created using the IM. For instance, the IM’s digital twins can be used to replicate real-world performance conditions cost effectively and safely. Microsoft’s implementation of IM capabilities for Hellenic, one of the biggest Coca-Cola bottlers, is an example. With over 55 locations in Europe, Hellenic services 29 local markets. Ninety thousand Coca-Cola bottles are produced per hour on a single production line in Greece. Microsoft used sensor data to create digital twins that allowed factory workers to immerse themselves in the models. The factory reportedly reduced its energy consumption by more than 9% percent in 12 weeks. Furthermore, physical objects like diesel generators account for CO 2 emissions, amounting to 1,091,618 kg/yr of pollutants [ 104 ], and this is costly to mitigate.
• Reduction in the consumption of physical objects: It is important to think about the possible challenges of virtual consumption and how the environment might be affected. Although virtual environments have the potential to be more environmentally friendly than real ones, it is still unclear how this will impact energy consumption and carbon emissions [ 105 ]. Realizing the possibility of much less materialistic consumption can be facilitated by the IM. It is stated that 21% of consumers expressed their willingness to engage in digital activities in the future, which is expected to reduce the need for physical items [ 106 ].
• Precise assessment of pollution generated and improvement in reward and enforcement: Finding out how much pollution a company produces can help with processes related to rewards and enforcement, as well as encouraging the adoption of eco-friendly practices. While tracking carbon in the real world is difficult, it can be done in the Metaverse by using blockchain technology to create fungible digital assets. Tokenization makes it easier to transfer carbon credits and establishes a market for voluntary carbon credit exchange. The credits might be used to offset emissions that have been reduced as a result of conservation efforts in the forestry industry and participation in carbon sequestration initiatives like improved soil and altered land use planning. This is exemplified by Reseed company’s platform, which utilizes blockchain technology to ensure the validity of carbon stock management, from registration through validation and verification, enabling farmers to receive additional income while providing a potential return to investors [ 107 ]. To be ready for sustainability within the IM, enterprises may consider utilizing renewable energy sources and cloud services, in addition to developing a culture of examining the effects of products on the environment, as well as creating a circular economy.

6. Innovative Security and Privacy Threats

• Data security and cybersecurity risks: With the increased reliance on interconnected systems and data sharing, the IM raises concerns about data security and cybersecurity risks. To this end, more and more devices, as well as platforms are increasingly becoming interconnected. Practically, this increases the risk of cyber threats and data breaches. Safeguarding sensitive data is, thus, imperative to protect enterprises, governments, and individuals.
• Privacy implications and regulatory compliance: The IM also brings to the fore challenges with regulatory compliance and privacy issues. Thus, with companies collecting and analyzing huge amounts of data, there is a need to ensure that the privacy of individuals is respected and protected. Optimizing innovation and privacy is a challenge that needs to be addressed.
• Avatar authentication issue: Increasingly, digital avatars such as faces, videos, and voices are employed in the virtual world, which is a form of Metaverse, where user authentication and verification are common in comparison to the real world. Realistically, attackers can make identical sounds and movies by mimicking the appearance of the real user using sophisticated AR and VR tools and devices coupled with AI bots. Consequently, the security and privacy of avatars remain a major concern.

7. Future Research Challenges

• Security by design: The robust datasets linked to digital twins are useful for both businesses and hackers. Digital twins are vulnerable to manipulation by hackers who could use them to harvest identities, encrypt data, extort businesses, or spy on corporate [ 110 ] secrets. A case in point is the deployment of fake digital twins, which enable hackers to create virtual versions of users or entire environments using compromised data for criminal intents. A deep flake scenario could, as an example, pose as a dishonest executive member of a company in a Metaverse virtual conference room to trick the victim into disclosing sensitive information. Data Poisoning is another aspect where data from the underlying AI and ML learning systems may be altered. This compromises the insights businesses derive from their simulations and, in the worst case scenario, may result in disastrous business decisions based on inaccurate data. Companies run the risk of allocating funds to unproductive channels in the belief that they are acting based on reliable projections from their digital twins if, for instance, demographic data or action profiles of the modeled target groups are fabricated. Consequently, security and user privacy must be foundational design components that should be considered when creating any Metaverse applications rather than being added on later [ 111 ].
• Communications and protocol design: Immersive IM experiences will require high download speeds, low latency, and large capacity to facilitate heterogeneous interconnected devices to communicate with the virtual model at the requisite level. In industrial settings, this will require 5G and possibly also 6G networks [ 109 ]. To this end, a change in paradigm for the communication protocol will be required that is goal-oriented and semantically aware. A seamless instant messaging experience must be taken into account when designing a communication protocol. In the end, a model design will be needed to standardize the IM’s communication protocols, so that it can be accessed from various virtual worlds’ heterogeneous communication systems.
• Energy-efficient and Green IM: The IM market is now projected to be worth between USD 100 and USD 150 billion, with a conservative 2030 forecast of about USD 400 billion, but with a potential of increasing to more than USD 1 trillion [ 48 ]. The IM is creating more opportunities for companies and workers and increasing the adoption of greener practices and renewable energy [ 112 ].
• Limitations of VR and AR technologies: The current limitations in the capabilities and dependability of VR and AR technologies present a significant obstacle to the implementation of the IM in mining. To produce precise and practical digital twins of mines and supply the situational awareness required for increased safety, these technologies may be enhanced.
• High-cost implementation: The newest gear and software for virtual reality and augmented reality is expensive. To decide if these technologies are feasible for their operations, miners must assess the costs and potential benefits.
• Human factors and ergonomics: It is critical to protect the health and safety of employees on the IM. This entails reducing the possibility of accidents, making sure employees are properly trained, and offering help when needed. Furthermore, using the IM for an extended period may harm one’s health.
• Training and adoption: The workforce in the mining sector is diverse, and not every employee may be familiar with the newest technological advancements. Some may oppose the changes engineered by the use of new instruments. Mining businesses must engage in thorough and customized training and change management programs that are especially geared to suit the needs of their employees to ensure the successful adoption and usage of these tools.

8. Conclusions

Author contributions, data availability statement, conflicts of interest.

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Share and Cite

Nleya, S.M.; Velempini, M. Industrial Metaverse: A Comprehensive Review, Environmental Impact, and Challenges. Appl. Sci. 2024 , 14 , 5736. https://doi.org/10.3390/app14135736

Nleya SM, Velempini M. Industrial Metaverse: A Comprehensive Review, Environmental Impact, and Challenges. Applied Sciences . 2024; 14(13):5736. https://doi.org/10.3390/app14135736

Nleya, Sindiso Mpenyu, and Mthulisi Velempini. 2024. "Industrial Metaverse: A Comprehensive Review, Environmental Impact, and Challenges" Applied Sciences 14, no. 13: 5736. https://doi.org/10.3390/app14135736

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