A manufacturer of office furniture stops selling chairs and instead leases them to customers. At the end of each lease it takes the chairs back, refurbishes them and re-leases them, and recycles parts that cannot be reused. Which concept does this business model best illustrate?

Correct answer: C) The circular economy

Explanation

A circular economy keeps products and materials in use at their highest value for as long as possible, designing out waste through reuse, refurbishment and recycling. Product-as-a-service models such as leasing support this because the producer keeps ownership and has an incentive to make durable products. A linear economy disposes of products after use, while degrowth refers to reducing overall economic throughput.