The circular economy can have oligarchic tendencies in socially-unequal countries: evidence from Chile.
Abstract The Sustainable Development Goals include both increasing recycling rates and reducing socioeconomic inequalities. However, existent research lacks attention to the link between advancing towards the circular economy and concentration of wealth and political power. This article analyzes the case of Chile, one of the most income-unequal countries in the world, which between 2014 and 2020 implemented a registry of polluters, an extended producer responsibility legislation, and called for elections to establish a Constitutional Convention to set a new rule of law for the country. The authors of this study innovate by analyzing both economic concentration and political linkages among waste valorization companies. The results show a tendency towards higher concentration in already concentrated waste markets, and a continuous rise in the share of the valorisation market by politically-linked companies. The coexistence of oligopoly, oligopsony and oligarchic tendencies should be considered when analyzing the circular economy in other countries.