What concept is industrial ecology based upon?

Industrial ecology is fundamentally based on the concept of a circular economy. This concept emphasizes the importance of creating closed-loop systems where waste is minimized, and materials are reused and recycled. In a circular economy, the life cycle of products and materials is extended, helping to reduce environmental impact and promote sustainable development.

The principles of industrial ecology mirror this approach by considering the flow of materials and energy in industrial systems much like natural ecosystems. In this perspective, waste from one process becomes a resource for another, promoting efficiency and sustainability. This aligns with the goals of the circular economy, which seeks to design out waste and pollutants, keep products and materials in use, and regenerate natural systems.

In contrast, the other options, while relevant in different business contexts, do not capture the foundational idea of industrial ecology. Cost leadership, competitive advantage, and global trade relate more to economic strategies and market positioning, rather than the ecological and sustainability focus that is central to industrial ecology. Therefore, the correct choice accurately reflects the core philosophy of the field.