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The performance economy

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The performance economy model calls for a shift from offering products to offering Products as a Service (PaaS). The idea is that, rather than buy a product you'll eventually throw away, you buy the service that the product provides. Rather than buy disposable lightbulbs, for example, you would buy the service of lighting.

The result is a push toward reuse and remanufacturing, which is less labor-, resource-, and capital-intensive than producing new products all the time. It shifts the paradigm from “products have value” to “products provide a service that’s valuable.”

Walter Stahel, who wrote the book The Performance Economy in 2006, offers a new business model that’s driven by values, gains knowledge and insight into its customers, and relies on circular systems based on biology.

Circular Economy For Dummies

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