The Tension Between Circular Logic and Human Nature

In a linear economy, the transaction ends at the point of sale. For a designer, this often means losing track of the product’s lifecycle. However, as we shift toward a Circular Economy, a new model is emerging: Product-as-a-Service (PaaS).

According to the Ellen MacArthur Foundation (2016), PaaS models like leasing dishwashers, fridges, or lighting align the manufacturer’s incentives with product longevity. When a company retains ownership, durability and repairability (DFA/DfD) stop being “costs” and become profit drivers.

The Friction: “But I want to own it”

Despite the systemic benefits, there is a profound human resistance to leasing. I feel it too: I love owning my computer.This isn’t just a whim; it is what researchers call Psychological Ownership.

Pierce et al. (2001) defined this as the state in which individuals feel as though an object is “theirs,” even without legal title. In design, this presents a massive barrier:

• Self-Identity: We define who we are through our tools.
• Control: Owning a home feels like having absolute freedom to modify it.
• Investment: The time we spend customizing our settings creates a “bond” with the hardware.

As Tukker (2004) noted in his seminal work on Product-Service Systems, for a leasing model to succeed, the “result-oriented” service must provide a higher perceived value than the “product-oriented” ownership.

High Identity vs. Utility-First Design

But not all products are created equal, and our need for ownership varies.

Take, for instance, a common waste container. In many urban environments like Vancouver, we don’t ‘own’ our bins; we lease the service of waste management. This is a perfect example of a low-identity utility where the leasing model thrives.

Because the service provider owns the hardware, they are incentivized to provide containers that are rugged, standardized for robotic pickup, and easily repairable. The design is utilitarian, durable, and modular. Unlike my computer, where I seek a personal bond, the waste container represents a category where PaaS is not just logical, but invisible and efficient.

A New Role for Designers

How do we bridge this gap? As industrial designers, we must categorize our interventions.

1. For High-Identity Products (like computers): We need to create Modular Architectures that allow for deep personalization (like swap in Data Modules) within a circular loop.
2. For Utility-First Products (like waste bins): We must focus on Higiene-as-a-Service, designing for extreme durability, standardized maintenance, and seamless integration into the service infrastructure.

The circular economy isn’t just about recycling; it’s about rethinking the user product relationship. As Bocken et al. (2016) argued, closing resource loops requires a fundamental shift in business models. Our job is to design service based products that people can still trust, whether they love them or just need them to work.

• Bocken, N. M., et al. (2016). Product design and business model strategies for a circular economy. Journal of Industrial and Production Engineering.
• Ellen MacArthur Foundation (2016). Intelligent Assets: Unlocking the Circular Economy potential. 
• Pierce, J. L., et al. (2001). Toward a Theory of Psychological Ownership in Organizations. Academy of Management Review.
• Tukker, A. (2004). Eight types of product–service system: eight ways to sustainability? Business Strategy and the Environment.