FROM FAST FASHION TO CIRCULAR ECONOMY: ADDRESSING GREENWASHING AND ARTIFICIAL DEMAND CREATION

Abstract

Fast fashion has transformed the fashion industry by creating an artificially high demand for
clothing, leading to a take-make-waste approach that causes significant environmental harm. This paper
examines the relationship between greenwashing, artificial demand creation, and the transition to a circular
economy. Policymakers have a crucial role to play in incentivizing fast-fashion retailers to move towards a
more sustainable and circular business model. This paper focuses on the European Commission, as a powerful
political institution, to explore feasible solutions. The methodology involves analyzing and providing
solutions from various fields, including law, economics, international business, global studies, and
psychology. The introduction explains the rise of fast fashion and the negative environmental impact of its
take-make-waste approach. Greenwashing is used to maintain artificially high demand and reduce consumer
guilt, hindering the transition to a circular economy. The circular economy is proposed as a solution to this
problem. The paper then identifies potential solutions that policymakers can adopt, including taxation,
regulations, education, and consumer empowerment. The feasibility of each solution is assessed, highlighting
the obstacles that may impede their implementation. This paper concludes that policymakers must take urgent
action to address the problems caused by fast fashion, and that the transition to a circular economy is critical.
The proposed solutions offer significant opportunities, but their implementation requires a coordinated effort
by policymakers, businesses, and consumers. Addressing the issue of greenwashing and artificial demand
creation in the fast-fashion industry is a vital step towards achieving a sustainable future.