This paper presents a methodological proposal that integrates the circular economy concept and financial valuation through real options analysis. The Value Hill model of a circular economy provides a representation of the course followed by the value of an asset. Specifically, after the primary use, the life of an asset may be extended by going through four phases: the 4R phases (Reuse, Refurbish, Remanufacture and Recycle). Financial valuation allows us to quantify value creation from firms’ asset circularity under uncertainty, modelled by binomial trees. Furthermore, the 4R phases are valued as real options by applying no-arbitrage opportunity arguments. The major contribution of this paper is to provide a quantitative approach to the value of circularity in a general context that is adaptable to firms’ specific situations. This approach is also useful for translating relevant information for stakeholders and policy makers into something with economic and financial value.

We propose a teaching activity aimed at promoting social values, such as trust and reciprocity, among undergraduate students in economics and related degrees. We present our pilot experience of what we call RED–‘Reading–Experiment–Discussion’, a three-step activity as part of a class of a specific module at the University of Valencia. During the Reading step, we encourage students to reflect, learn, and critically think about social values. In the second step, Experiment, students make decisions in a trust game experiment, a game created to measure trust and reciprocity in economic environments. Students then give opinions through a post-experiment questionnaire. Our research hypotheses are tested by using non-parametric methods. We also investigate the association between students’ decisions and their attitudinal and sociodemographic characteristics by linear regression analysis. Experimental data show that decisions on trust and reciprocity are dependent on earnings information and that, on average, females trust more than males. Finally, in the Discussion step, the learning is reinforced by sharing the readings about morals and the experimental decisions. In short, RED may be of great help in transmitting to students the role of social preferences in individual decision making.