MBAs in the Circular Economy: Analyzing the Life Cycle of e-bike Components

    MBAs in the Circular Economy: Analyzing the Life Cycle of e-bike Components
    The circular economy is a term that is being thrown around a lot lately, but what does it actually mean? In short, the circular economy is an alternative to the traditional linear economy, which is based on the linear model of take-make-waste. In the circular economy, waste is designed out of the system and products are made to last longer.

    The circular economy is often talked about in the context of the environment, but it also has implications for business and the economy more broadly. One area where the circular economy is starting to gain traction is in the area of electric bikes (e-bikes).

    E-bikes are a growing market, with sales increasing by 41% in the US in 2017.1 As the market for e-bikes grows, so too does the need for a more sustainable approach to their design, manufacture and disposal.

    The life cycle of an e-bike can be divided into four main stages: production, use, end-of-life and recycling/reuse.

    1. Production

    The production stage of an e-bike’s life cycle begins with the mining of raw materials. For an e-bike, this would include metals such as aluminum and steel, as well as battery materials such as lithium and cobalt.

    The mining of these materials has environmental impacts, including greenhouse gas emissions, water pollution and habitat destruction.2 Once the raw materials have been extracted, they are transported to factories where they are turned into e-bike components.

    The manufacturing process also has environmental impacts, including emissions of greenhouse gases and other pollutants.3

    2. Use

    The use stage of an e-bike’s life cycle is when the bike is actually being ridden. E-bikes have a number of environmental benefits over traditional bikes, including lower emissions of greenhouse gases and air pollutants.4

    3. End-of-life

    The end-of-life stage of an e-bike’s life cycle is when the bike is no longer usable and is disposed of. E-bikes can be recycled, but the recycling process is not yet well developed.5 As a result, most e-bikes end up in landfill, where they will remain for hundreds of years.6

    4. Recycling/reuse

    The recycling and reuse stage of an e-bike’s life cycle is when the bike is dismantled and the components are recycled or reused.

    The recycling of e-bike components is a challenge due to the variety of materials used and the difficulty of separating the components.7 As a result, only a small percentage of e-bike components are currently being recycled.8

    The reuse of e-bike components is a more promising option. Some e-bike components, such as batteries, can be reused in other applications.9 Other components, such as the frame, can be refurbished and sold as second-hand e-bikes.10

    The circular economy is a promising approach for the design, manufacture and disposal of e-bikes. By designing out waste and making products to last longer, the circular economy has the potential to reduce the environmental impacts of e-bikes throughout their life cycle.

    Sep 02, 2023


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