The U.S. legal cannabis market is an estimated $60 billion industry, with approximately 28,000 businesses operating and employing upwards of 300,000 people, and growing rapidly. Large-scale cultivation requires significant energy usage, nutrient and pesticide inputs, and water usage, resulting in cumulative environmental impacts. Addressing these concerns raises complex legal issues because of cannabis’ federal classification as a Schedule 1 narcotic, which prevents federal agencies from collecting data on, providing guidance to, or regulating the industry.

The circular economy has gone mainstream as a goal in the transitions toward a more sustainable society. Often, however, laws that promote a circular economy remain vague or narrowly focused on resource efficiency, obscuring the fact that they have multiple environmental effects and can lead to environmental trade offs. This Article examines how to properly frame circular economy laws for sustainability, focusing on product-service systems generally and the case of car sharing in particular.