Reconfiguring Production, Governance and Territorial Value Creation through Circular Economy: Institutional Pathways for an Ecological and Solidarity-Based Transition

This paper examines the relationship between the circular economy, ecological transition and solidarity-based development by bringing together contributions from sustainability studies, transition theory, social economy research and environmental governance. The literature shows that circularity cannot be reduced to recycling or resource recovery, since its transformative potential depends on changes in production systems, consumption practices, organizational models, institutions and territorial governance. Particular attention is given to circular business models, community energy, circular cities, cooperatives, social enterprises and just-transition policies. The review indicates that environmental improvements do not automatically generate social inclusion or equitable development. Their contribution depends on ownership structures, participation, employment conditions, distribution of economic value and access to decision-making. Cooperatives, social enterprises and community-based organizations may therefore provide institutional arrangements through which ecological objectives can be combined with territorial value creation and social participation. The paper argues that a solidarity-oriented ecological transition requires coordinated public policies linking resource efficiency with democratic governance, local economic development and distributive justice. Circular economy policies should consequently be assessed through environmental, economic, social and institutional criteria rather than through material-flow indicators alone.