JAGTIV · Previous Year Questions

UPSC

ECONOMY · 2025

Previous Year Question

Consider the following statements:

Statement I: Circular economy reduces the emissions of greenhouse gases.

Statement II: Circular economy reduces the use of raw materials as inputs.

Statement III: Circular economy reduces wastage in the production process.

Which one of the following is correct in respect of the above statements?

A.

Both Statement II and Statement III are correct and both of them explain Statement I

B.

Both Statement II and Statement III are correct but only one of them explains Statement I

C.

Only one of Statements II and III is correct and that explains Statement I

D.

Neither Statement II nor Statement III is correct

Correct Answer: A

Detailed Solution

Statement I is correct. A circular economy seeks to retain products and materials within economic use for a longer period. It replaces the traditional linear model of Take, Make and Dispose with reuse, repair, refurbishment, remanufacturing and recycling.

This reduces the need for extracting, processing and transporting fresh raw materials. These activities are generally energy-intensive and result in emissions of carbon dioxide and other greenhouse gases. A circular economy consequently contributes to reducing greenhouse-gas emissions.

Statement II is correct and explains Statement I. Reuse and recycling return materials already available in the economy to the production process. This reduces the demand for primary or virgin raw materials such as minerals, metals, timber and fossil fuels.

A reduction in raw-material extraction and primary processing lowers the energy use and emissions associated with mining, manufacturing and transportation. Statement II therefore explains one of the mechanisms through which the emission reduction mentioned in Statement I occurs.

Statement III is also correct and explains Statement I. A circular economy reduces wastage during production through better design, resource efficiency and reuse of by-products.

Lower waste generation reduces the need for landfilling, waste incineration and production of replacement materials. This helps control emissions of methane, carbon dioxide and other greenhouse gases.

Important circular-economy measures include:

  • Designing products to be durable and repairable.

  • Promoting reuse and shared use.

  • Refurbishing and remanufacturing old products.

  • Using the residual material of one industry as an input for another.

  • Making producers responsible for post-consumer collection and recycling through Extended Producer Responsibility—EPR.

India’s EPR-based frameworks for e-waste, plastic waste, waste tyres, used oil and batteries represent important measures towards a circular economy.

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