Closing the Loop: The Dynamic Challenge of the Circular Economy of Plastics

This study investigates the dynamic challenges facing the circular plastics economy in the Netherlands, focusing on the viability of recycling under current and future policies. Despite ambitious regulations mandating higher recycled content in plastic products, the industry faces structural obstacles, including low profitability, limited capacity, and quality constraints. Using a system dynamics model built in collaboration with key industry stakeholders, we explore the market dynamics of mechanical plastic recycling. Our findings reveal that policy effectiveness depends on addressing material quality and financial feasibility, suggesting that targeted, performance-based support is essential for fostering a competitive and scalable circular plastics industry.