UPSC Prelims 2025Question 9Economy

Consider the following statements:
Statement I: Circular economy reduces the emissions of greenhouse gases.
Statement II: Circular economy reduces the use of raw materials as inputs.
Statement III: Circular economy reduces wastage in the production process.
Which one of the following is correct in respect of the above statements?

Options

(a)Both Statement II and Statement III are correct and both of them explain Statement I
(b)Both Statement II and Statement III are correct but only one of them explains Statement I
(c)Only one of the Statements II and III is correct and that explains Statement I
(d)Neither Statement II nor Statement III is correct

Correct answer: a

Decision rule

Cutting raw-material use and cutting waste reach emissions by separate routes — extraction energy and disposal — so each independently explains the emissions claim.

Explanation

Correct Answer:

(a) Both Statement II and Statement III are correct and both of them explain Statement I

Explanation of the Correct Answer:

Let us examine the statements and their logical linkage:

Statement I:

Circular economy reduces the emissions of greenhouse gases.

Correct.
Circular economy principles aim to lower resource extraction, energy use, and waste generation, all of which are major sources of greenhouse gas (GHG) emissions.

Statement II:

Circular economy reduces the use of raw materials as inputs.

Correct.
By promoting reuse, recycling, remanufacturing, and material recovery, the circular economy reduces dependence on virgin raw materials, whose extraction and processing are energy-intensive and carbon-emitting.

Statement III:

Circular economy reduces wastage in the production process.

Correct.
Circular models minimize waste through efficient design, closed-loop systems, and by-product utilization, reducing emissions from waste treatment, landfilling, and incineration.

Causal linkage:

Reduced raw material use (Statement II) lowers emissions from mining, processing, and transport.
Reduced wastage (Statement III) cuts emissions from disposal and inefficient production.
Hence, Statements II and III together explain why Statement I is true.

Why Other Options Are Incorrect

Option	Verdict	Explanation
(a)	Correct	Both Statements II and III are correct and both explain Statement I.
(b)	Incorrect	Both Statements II and III explain Statement I, not just one.
(c)	Incorrect	Both Statements II and III are correct, not only one.
(d)	Incorrect	Statements II and III are factually correct.

Relevant Supplementary Information

Table: Linear Economy vs Circular Economy

Aspect	Linear Economy	Circular Economy
Resource Use	High use of virgin raw materials	Reduced raw material input
Production Model	Take–Make–Dispose	Reduce–Reuse–Recycle
Waste Generation	High	Minimal
Energy Intensity	High	Lower
GHG Emissions	High	Reduced
Sustainability	Low	High

Context and Current Relevance

Circular economy is central to India’s climate commitments, including Net Zero by 2070.
India promotes circularity through policies on plastic waste management, e-waste rules, and resource efficiency.

Key Takeaways from the Table

Lower raw material extraction directly reduces energy use and emissions.
Waste minimization prevents emissions from disposal and inefficient production.
Circular economy provides a structural pathway to emission reduction, not just end-of-pipe control.
UPSC often tests cause–effect linkages between sustainability concepts and climate outcomes.

Circular economy reduces emissions indirectly by cutting resource extraction and waste generation.
Raw material reduction and waste minimisation are the primary causal mechanisms.
Emission reduction is a systemic outcome, not a standalone objective.
UPSC often tests whether candidates can link sustainability practices with climate outcomes, not just define terms.

Table: Circular Economy – Principles, Actions, and Outcomes

Principle / Aspect	What it Means	Direct Impact	Environmental Outcome	Why it Matters
Reduced Raw Material Use	Less dependence on virgin resources	Lower mining & processing	Reduced GHG emissions	Extraction is energy-intensive
Reuse & Recycling	Materials kept in use longer	Lower demand for new inputs	Reduced carbon footprint	Extends product life cycle
Waste Minimisation	Less scrap and rejects	Lower landfill & incineration	Reduced methane & CO₂	Waste disposal emits GHGs
Remanufacturing	Products restored to usable state	Saves energy vs new production	Lower industrial emissions	Especially relevant for metals
Eco-design	Design for durability & recyclability	Higher material efficiency	Lower life-cycle emissions	Prevention over cure
Closed-loop Systems	Output becomes input	Near-zero waste	Emission reduction	Core circular economy feature

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