Analysis of the Circular Economic System Using the Causal Loop Diagram Method Based on the Green Economy an Islamic Economic Perspective in West Sumatera

circular economy causal loop diagram sustainable development islamic economic perspektive

Authors

  • Imtihan Universitas Nahdlatul Ulama Sumatera Barat, Faculty of Social and Humanities, P.O. Box 25111-25237,West Sumatra, Indonesia
  • Zasmeli Suhaemi Universitas Nahdlatul Ulama Sumatera Barat, Faculty of SAINS, P.O. Box 25111-25237,West Sumatra , Indonesia
  • Sanny Edinov Universitas Nahdlatul Ulama Sumatera Barat, Faculty of Engineering, P.O. Box 25111-25237,West Sumatra , Indonesia
  • Alpon Satrianto Universitas Negeri Padang, Faculty of Economics and Business, P.O. Box 25111-25237,West Sumatra , Indonesia
Vol. 13 No. 01 (2025)
Economics and Management
January 8, 2025

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Circular economy is an economic concept that implements sustainable development goals related to sustainable and sustainable levels of consumption and production as well as a solution to environmental problems caused by consumption and production programs from the application of a linear economy with the concept of "take-use-dispose". The aim of this research is to find out how Islamic economics views the development of a circular economy based on a green economy. This research was conducted in West Sumatra. The stages in this research were carried out by determining the main variables in the circular economy, using multiple linear regression analysis. Based on primary and secondary data, the A Causal Loop Diagram analysis was carried out and then integrated with an Islamic economic perspective. The results of this research found that circular economics is in line with the principles contained in the Islamic economic perspective, namely: (1) Principles of wise resource management; (2) The principle of minimal waste disposal; (3) Principles of social justice and growth; and (4) Principles of sustainable development.