INFORMAL INSTITUTIONS IN THE CIRCULAR ECONOMY

The paper adopts a perspective of institutional economics rarely used in environmental issues and aims to identify and evaluate informal institutions determining the transition towards the circular economy. Without informal institutions supporting changes, formal regulations will not serve their purpose well and will not achieve the intended objectives. The identified informal institutions comprise recognition of environmental problems, belief in the environmental impact of one's actions, willingness to make an effort to close cycles, and trust in the reliability of other actors' environmental commitment. Consumers are the ultimate product and service users, and their attitudes significantly determine the circular transition, so the CAWI survey was conducted among them. The results indicate that the identified informal institutions do not support circular transitions sufficiently. Significant changes in informal institutions are required to support the transition.