Circular Economy Business Model for Solar Projects: The Case of Dubai
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Date
2024-12
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The British University in Dubai (BUiD)
Abstract
Solar projects are growing in the United Arab Emirates and Dubai, driven by a net-zero carbon target by 2050. The study aimed to propose a circular economy business model (CEBM) for solar projects in Dubai, considering the particular project's surrounding factors. The study identified four major determinants: circular economy business model and sustainable value, mediated by strategy, and moderated by internal and external factors. The study used mixed methods, including a quantitative survey where structural equation modelling was employed to test the study’s model, and a qualitative focus group to validate CEBM design options and components. The findings of the study showed the influence of the CEBM on sustainable value and found significant partial mediation of strategy on this relationship; while external factors had a negative moderation on this relationship, internal factors positively moderated it. Given the paucity of research on the circular economy in projects, this study extends the theory by applying circular economy business model theory to solar projects, by examining various business model theoretical constructs and their effects on the sustainable value of projects. The proposed business model offers a novel circular business model that can be implemented in Dubai’s energy sector to meet sustainability strategic goals of both the emirate and the UAE. The proposed circular economy business model provides a new approach to circularity and further details on circular practices that can be deployed in Dubai’s energy sector, such as green procurement and 3D printing. Moreover, the proposed circular economy business model can be used to engage and prioritise environmental, social and governance (ESG) practices in the solar energy sector.