Unveiling the Circular Economy Rebound Effects in Product-Service Systems: Types, Triggers, and Mitigation Strategies

ABSTRACT

The circular economy has emerged as a strategy to address global challenges, such as overconsumption, and is linked to the adoption of consistent business models designed to create, deliver, and adequately capture value. Among circular business models, product-service systems (PSS) are a key strategy to achieve circularity, combining tangible products with intangible services to meet customer needs. However, the sustainability of PSSs is not guaranteed, as the environmental impact depends significantly on their configuration and management. Thus, they must be carefully designed to address potential challenges, such as rebound effects (REs), which could hinder PSSs’ sustainability and are related to additional activities, user behavioral changes, and market transformation, depending on the PSS archetype. Although the literature recognizes the significance of REs in hindering PSSs’ sustainability, further research is needed to deepen the understanding of this phenomenon. Addressing this gap, this study conducts a systematic literature review to investigate and analyze how REs manifest in different PSS archetypes, identify their triggers, and propose potential mitigation strategies. This study has both theoretical and practical implications. From a theoretical perspective, the study systematizes the existing knowledge on REs in PSSs. It proposes a systematization of the current state of the art on the topic and provides a classification of possible REs within PSS implementation, their main triggers, and mitigation strategies. Finally, it proposes potential theory-based avenues for future research in the field. From a practical perspective, the study may help PSS providers in identifying and understanding possible REs and putting in place mitigation strategies.