In the development of the circular economy, discussion around circular business models and circular revenue models is booming.

But what is a true circular business or circular revenue model? When can these models be applied, and what are the barriers that still exist?

For the past decade the authors of this paper have gathered practical experience with the implementation of circular revenue models such as lease, pay-per-use and take-back schemes. It is from this experience that they noticed that the current institutional economic framework hinders the transition to the circular economy.

The paper provides insight in four key barriers, providing a real-life business case as an example for each. It also includes a guideline for policy makers on how to address these barriers.