Contribution of industrial symbiosis networks to greenhouse gas emission reduction: A quantitative assessment using environmental performance indicators
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DOIhttp://dx.doi.org/10.21511/ee.17(3).2026.03
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Article InfoVolume 17 2026, Issue #3, pp. 35–48
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Type of the article: Theoretical Article
Abstract
Industrial symbiosis has gained increasing importance as a systemic approach within the circular economy for improving resource efficiency and reducing greenhouse gas emissions. The aim of this study is to develop a theoretical framework explaining how industrial symbiosis networks contribute to greenhouse gas emission reduction within an environmental economics perspective. The study is based on a theoretical analysis and conceptual synthesis of industrial ecology and environmental economics literature.
The results identify three core operational mechanisms – material substitution, energy cascading, and waste valorization – through which industrial symbiosis reduces lifecycle emissions, and structure their relationships within a framework consisting of four interrelated components: industrial symbiosis activities, operational mechanisms, environmental performance outcomes, and environmental economic outcomes. Greenhouse gas emissions expressed in CO2-equivalent terms are conceptualized as the primary environmental performance indicator, while economic indicators such as cost savings, eco-efficiency, and emission abatement cost are integrated to explain how emission reduction aligns with economic efficiency. The framework demonstrates that industrial symbiosis functions as a decentralized coordination mechanism that reduces environmental externalities through system-level resource optimization rather than technological change alone.
The findings contribute to environmental economics theory by clarifying the relationship between industrial cooperation, environmental performance indicators, and economic efficiency, providing a structured basis for future empirical assessment and policy evaluation.
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JEL Classification (Paper profile tab)Q54, Q56, Q58, D62, L23
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References48
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Tables1
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Figures2
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- Figure 1. Conceptual framework for industrial symbiosis contribution to GHG emission reduction
- Figure 2. Illustration of emission reduction mechanisms via industrial symbiosis
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- Table 1. Economic indicators for assessing industrial symbiosis contributions to greenhouse gas emission reduction
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