CIRCULAR ECONOMY AS AN INCLUSIVE ECONOMIC MODEL


Keywords: circular economy, linear model, circular model

Abstract

Topicality. The main approaches to the formation of a circular economy are consider in the article. The principles of building a circular economy are reveal. The genesis of the "circular economy" is studied: from the origin of the idea to modern trends. The modern understanding of circular economy and its practical application in evolving economic systems is present, including various features and contributions of different concepts that share the idea of closed cycles.
Aim and tasks. To reveal the peculiarities of the formation of the paradigm of the circular economy at the global, regional and national levels of the model of the circular economy in the conditions of inclusive development. The tasks are to reveal a holistic view of the new model of formation and development of the economy.

Research results. Model analysed Model K. Whitman: differences between linear and circular economy. A parallel is draw with the impact on the environmental well-being of countries. The publications of the Ellen MacArthur Foundation and their joint developments with McKinsey & Company, in particular, economic and business opportunities for the transition to a restorative, circular model of the economy. The main approaches of technology of reuse of re-X (recycling, remanufacturing, reuse, etc.) technologies as components of circular economy are studied. Five approaches to resource cycles are identifyу, which are the basis of the overall strategy, the archetypes of innovation of the circular business model. The reports of the World Economic Forum and the PACE with an emphasis on the paradigm shift in world production regarding the concept of circular production are analyse. The guidelines of the British Standards Institute and the International Organization for Standardization that implement a circular economy strategy are considered. The main directions of transformation of the economies of the world, in particular, the EU, USA, China, Ukraine and their targets are studied. Government and legislative initiatives on the way of forming a circular economy, solving environmental problems and waste recycling are highlight. Examples of financial support and initiatives of financial governmental and non-governmental institutions are given. The article focuses on the research of the world's leading scientists, international institutions, and analytical reports on the implementation of the concept of circular economy.

Conclusion. Thus, the circular economy is one of the directions of development of the global economic space, built as a model of interaction of all actors of international economic relations in the conditions of development of inclusive economy and society. The circular economy is not an unambiguous process that can be solved globally without the involvement of all stakeholders, it is also the main engine for achieving the Kyoto Protocol, sustainable development goals, solving the problem of limited resources, forming a culture of waste management, etc.

Author Biography

ELLANA MOLCHANOVA

Candidate of Economic Sciences

Kyiv National University of Trade and Economics,

Ukraine, 02156, Kyiv, st. Kyoto, 19

References

1. Circulytics - measuring circularity. Retrieved from: https://www.ellenmacarthurfoundation.org/resources/apply/circulytics-measuring-circularity [in English].
2. Kneese, Allen V. (1988). "The Economics of Natural Resources". Population and Development Review. 14: 281–309. DOI:10.2307/2808100. [in English].
3. Cradle to Cradle | The Product-Life Institute". Product-life.org. 2012-11-14. Retrieved from: 2013-11-20. 3//http://www.product-life.org/en/cradle-to-cradle [in English].
4. Clift & Allwood, "Rethinking the economy", The Chemical Engineer, March 2011. Retrieved from: https://www.ellenmacarthurfoundation.org/news/rethinking-the-economy [in English].
5. David W. Pearce and R. Kerry Turner (1989). Economics of Natural Resources and the Environment. Johns Hopkins University Press. 392 p. ISBN 978-0801839870 [in English].
6. Jackson, Tim (1993). Clean Production Strategies Developing Preventive Environmental Management in the Industrial Economy. Retrieved from: https://www.crcpress.com/Clean-Production-Strategies-Developing-Preventive-Environmental-Management/Jackson/p/book/9780873718844 [in English].
7. L’économie circulaire. (2020, 4 novembre). Ministère de la Transition écologique. Retrieved from: https://www.ecologie.gouv.fr/leconomie-circulaire [in English].
8. Official website of the Ellen MacArthur Foundation. Retrieved from: https://www.ellenmacarthurfoundation.org/ [in English].
9. Catherine Weetman The Future is Bright, the Future is Circular How to make our lives more sustainable Retrieved from: https://www.rethinkglobal.info/ [in English]
10. Local Government for Sustainability Africa. (s. d.). (2021). Circular development | ICLEI Africa. Circular Development Pathway. Consulté le 15 mars. Retrieved from: https://africa.iclei.org/pathways_cat/circular-development-pathway/ [in English].
11. "Breaking The Plastic Wave". SYSTEMIQ. (2021). Retrieved from: https://www.systemiq.earth/breakingtheplasticwave/ [in English].
12. "Circular Fashion - A New Textiles Economy: Redesigning fashion's future" (2017). Ellen MacArthur Foundation. Retrieved from: www.ellenmacarthurfoundation.org. [in English].
13. "Cities and Circular Economy for Food". Ellen MacArthur Foundation (2017). Retrieved from: www.ellenmacarthurfoundation.org. [in English].
14. Blok, Kornelis; Hoogzaad, Jelmer; Ramkumar, Shyaam; Ridley, Shyaam; Srivastav, Preeti; Tan, Irina; Terlouw, Wouter; de Wit, Terlouw. "Implementing Circular Economy Globally Makes Paris Targets Achievable". Circle Economy. Circle Economy, Ecofys. Retrieved from: https://www.circle-economy.com/resources/circular-economy-a-key-lever-in-bridging-the-emissions-gap-to-a-1-5-c-pathway [in English].
15. "Towards the Circular Economy". Retrieved from: https://ellenmacarthurfoundation.org/assets/downloads/publications/Ellen-MacArthur-Foundation-Towards-the-Circular-Economy-vol.1.pdf [in English].
16. Rashid, Amir; Asif, Farazee M.A.; Krajnik, Peter; Nicolescu, Cornel Mihai (October 2013). "Resource Conservative Manufacturing: an essential change in business and technology paradigm for sustainable manufacturing". Journal of Cleaner Production. 57: 166–177.(Scopus). Retrieved from: https://www.sciencedirect.com/science/article/abs/pii/S0959652613003934?via%3Dihubdoi:10.1016/j.jclepro.2013.06.012 [in English].
17. Rheaply platform. Retrieved from: https://solve.mit.edu/challenges/circular-economy/solutions/10158 [in English]
18. Geissdoerfer, Martin; Morioka, Sandra Naomi; de Carvalho, Marly Monteiro; Evans, Steve (July 2018). "Business models and supply chains for the circular economy". Journal of Cleaner Production. 190: 712–721. (Scopus) DOI:10.1016/j.jclepro.2018.04.159. S2CID 158887458. Retrieved from: https://www.repository.cam.ac.uk/handle/1810/280260 [in English].
19. Batista, Luciano; Gong, Yu; Pereira, Susana; Jia, Fu; Bittar, Alexandre (December 2019). "Circular supply chains in emerging economies – a comparative study of packaging recovery ecosystems in China and Brazil" (PDF). International Journal of Production Research. 57 (23): 7248–7268. DOI:10.1080/00207543.2018.1558295. [in English].
20. Weetman, Catherine (2017). A circular economy handbook for business and supply chains : repair, remake, redesign, rethink. London, United Kingdom: Kogan Page. ISBN 978-0-74947675-5. Retrieved from: https://www.worldcat.org/title/circular-economy-handbook-for-business-and-supply-chains-repair-remake-redesign-rethink/oclc/967729002 [in English].
21. Hub, IISD's SDG Knowledge. "WEF Launches Public-Private Platform on Circular Economy" Retrieved from: https://sdg.iisd.org/news/wef-launches-public-private-platform-on-circular-economy/ [in English].
22. Circular Economy and Material Value Chains. Retrieved from: https://www.weforum.org/projects/circular-economy/ [in English].
23. The Platform for Accelerating the Circular Economy (PACE)". Retrieved from: https://www.sitra.fi/en/articles/platform-accelerating-circular-economy-pace/ [in English].
24. "The world is now only 8.6% circular - CGR 2020 - Circularity Gap Reporting Initiative". Retrieved from: https://www.circularity-gap.world/2020 [in English].
25. A New Circular Vision for Electronics Time for a Global Reboot (2019). Retrieved from: http://weforum.org/docs/WEF_A_New_Circular_Vision_for_Electronics.pdf [in English].
26. "Developing BS 8001 - a world first". The British Standards Institution. Retrieved from: Retrieved from: https://www.bsigroup.com/en-GB/standards/benefits-of-using-standards/becoming-more-sustainable-with-standards/BS8001-Circular-Economy/ [in English].
27. Pauliuk, Stefan (2018). Critical appraisal of the circular economy standard BS 8001:2017 and a dashboard of quantitative system indicators for its implementation in organizations. (Scopus). Retrieved from: https://www.sciencedirect.com/science/article/pii/S0921344917303531?via%3Dihub. doi:10.1016/j.resconrec.2017.10.019 [in English].
28. "ISO/TC 323 - Circular economy". Retrieved from: https://www.iso.org/committee/7203984.html [in English].
29. Circular economy action plan. Retrieved from: https://ec.europa.eu/environment/strategy/circular-economy-action-plan_de [in English].
30. Dosvid krayin Yevropy v perekhodi do tsyrkulyarnoyi ekonomiky (2021) [The experience of European countries in the transition to a circular economy)].Retrieved from: https://ecolog-ua.com/news/dosvid-krayin-yevropy-v-perehodi-do-cyrkulyarnoyi-ekonomiky [in Ukrainian].
31. Zvarych, I.(2016) Hlobalna tsyrkulyarna ekonomika yak zasib pobudovy novoho ekolohichno stiykoho suspilstva [Global circular economy as a means of building a new environmentally sustainable society]. Retrieved from: http://dspace.wunu.edu.ua/bitstream/316497/22489/1/%D0%97%D0%B2%D 0%B0%D1%80%D0%B8%D1%87%20%D0%86.pdf [in Ukrainian].
32. Lora Maxwell. Smart&Green Growth Clean transition to the bioeconomy BioNets Network and Profit CleanWeb Scale and Profit Arctic Seas Growth Campaigns.Retrieved from: https://slideplayer.com/slide/10239909/ [in English].
33. The official website of the company SITRA. Retrieved from: https://www.sitra.fi/en/ [in English].
34. Scott, W. Richard (2008). Institutions and Organization: Ideas and Interest (Third ed.). Stanford University: Sage Publications. pp. 50–51. Retrieved from: https://books.google.com.ua/books?id=7Y-0bDCw_aEC&pg=PA50&redir_esc=y#v=onepage&q&f=false [in English].
35. Valtteri Rantaa, Leena Aarikka-Stenroosa, Paavo Ritalab, Saku J.Mäkinena. Exploring institutional drivers and barriers of the circular economy: A cross-regional comparison of China, the US, and Europe (Scopus). Retrieved from: https://www.sciencedirect.com/science/article/abs/pii/S0921344917302653?via%3Dihub DOI https://doi.org/10.1016/j.resconrec.2017.08.017 [in English].
36. Republic Services Annual Report 2017". Archived from the original (PDF) on 16 December 2018. Retrieved 30 March 2019. Retrieved from: https://web.archive.org/web/20181216210930/ https://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_RSG_ 2017.pdf [in English].
37. Polystyrene Foam Ban. Retrieved from: https://www.dec.ny.gov/chemical/120762.html [in English].
38. City of Boulder - Green Points Building Program. Retrieved from: https://programs.dsireusa.org/system/program/detail/380 [in English].
39. Khomenko O.V (2018). Tsyrkulyarna ekonomika – osnova staloho rozvytku KNR. – Ukrayina-Kytay [The circular economy is the basis of China's sustainable development. - Ukraine-China]. Retrieved from: https://sinologist.com.ua/homenko-o-v-tsyrkulyarna-ekonomika-osnova-stalogo-rozvytku-knr/ [in Ukrainian].
40. China’s National Plan on Implementation of the 2030 Agenda for Sustainable Development. Retrieved from: http://fmprc.gov.cn/mfa_eng/zxxx_662805/W020161014332600482185.pdf [in English].
41. Rozporyadzhennya KMU "Pro skhvalennya Natsionalʹnoyi stratehiyi upravlinnya vidkhodamy v Ukrayini do 2030 roku" vid 8 lystopada 2017 r. № 820 -р [Order of the Cabinet of Ministers of Ukraine "On approval of the National Waste Management Strategy in Ukraine until 2030" of November 8, 2017 № 820-y]. Retrieved from: https://zakon.rada.gov.ua/laws/show/820-2017-%D1%80#Text [in Ukrainian].
42. Rozporyadzhennya KMU "Pro zatverdzhennya Natsionalʹnoho planu upravlinnya vidkhodamy do 2030 roku" vid 20 lyutoho 2019 r. № 117-р. [Order of the Cabinet of Ministers "On approval of the National Waste Management Plan until 2030" of February 20, 2019 № 117-y.]. Retrieved from: https://www.kmu.gov.ua/npas/pro-zatverdzhennya-nacionalnogo-planu-upravlinnya-vidhodami-do-2030-roku [in Ukrainian].
43. Zakon Ukrayiny "Pro Osnovni zasady (stratehiyu) derzhavnoyi ekolohichnoyi polityky Ukrayiny na period do 2030 roku" [Law of Ukraine "On the Basic Principles (Strategy) of the State Environmental Policy of Ukraine until 2030"]. Retrieved from: https://zakon.rada.gov.ua/laws/show/2697-19#Text [in Ukrainian].
44. Rozporyadzhennya KMU "Pro skhvalennya Kontseptsiyi realizatsiyi derzhavnoyi polityky u sferi zminy klimatu na period do 2030 roku" [Order of the Cabinet of Ministers "On approval of the Concept for the implementation of state policy in the field of climate change until 2030"]. Retrieved from: https://www.kmu.gov.ua/npas/249573705 [in Ukrainian].
45. Rozporyadzhennya KMU «Pro zatverdzhennya planu zakhodiv shchodo vykonannya Kontseptsiyi realizatsiyi derzhavnoyi polityky u sferi zminy klimatu na period do 2030 roku»" vid 6 hrudnya 2017 r. № 878-р [Order of the Cabinet of Ministers of Ukraine "On approval of the action plan for the implementation of the Concept of implementation of state policy in the field of climate change until 2030" "of December 6, 2017 № 878-y]. Retrieved from https://zakon.rada.gov.ua/laws/show/878-2017-%D1%80#Text [in Ukrainian].
46. Stratehiya nyzʹkovuhletsevoho rozvytku Ukrayiny do 2050 roku [Strategy of low-carbon development of Ukraine until 2050]. Retrieved from https://mepr.gov.ua/files/docs/%D0%9F%D1%80%D0%BE%D0%B5%D0%BA %D1%82%20%D0%A1%D1%82%D1%80%D0%B0%D1%82%D0%B5%D0%B3% D1%96%D1%97%20%D0%BD%D0%B8%D0%B7%D1%8C%D0%BA%D0%BE% D0%B2%D1%83%D0%B3%D0%BB%D0%B5%D1%86%D0%B5%D0%B2%D0% BE%D0%B3%D0%BE%20%D1%80%D0%BE%D0%B7%D0%B2%D0%B8%D1% 82%D0%BA%D1%83%20%D0%A3%D0%BA%D1%80%D0%B0%D1%97%D0% BD%D0%B8%20.pdf [in Ukrainian].
47. Zakon Ukrayiny “Pro publichni zakupivli” vid 25.12.15 №922-VIII [Law of Ukraine “On Public Procurement” of 25.12.15 22922-VIII]. Retrieved from: https://news.dzo.com.ua/zakonodavstvo/pidkategoriya-2-zakonodavstvo/zakon-ukrayiny-pro-publichni-zakupivli-922-viii-vid-25-12-15/ [in Ukrainian].
48. Zhyttyevyy tsykl v systemi publichnykh zakupivelʹ Prozorr [Life cycle in the Prozorro public procurement system]. Retrieved from: https://news.dzo.com.ua/novini/zhyttyevyj-czykl-v-systemi-publichnyh-zakupivel-prozorro/ [in Ukrainian].
49. Nova polityka YES z «tsyrkulyarnoyi» ekonomiky: mozhlyvosti dlya Ukrayiny [New EU policy on the "circular" economy: opportunities for Ukraine]. Retrieved from: https://dixigroup.org/wp-content/uploads/2020/09/dixi_pb_circular-economy_ukr_full_3.pdf [in Ukrainian].
50. Andrusevych A., Andrusevych N., Kozak Z., Kravchuk V., Movchan V., Synytsya A., Khabatyuk O., Shor K. (2020). Yevropeysʹkyy zelenyy kurs: mozhlyvosti ta zahrozy dlya Ekrayiny. Analitychnyy dokument [Andrusevych A., Andrusevych N., Kozak Z., Kravchuk V., Movchan V., Sinitsa A., Khabatyuk O., Shore K. (2020) European Green Course: Opportunities and Threats for Ukraine. Analytical document]. Retrieved from: https://dixigroup.org/storage/files/2020-05-26/european-green-dealwebfinal.pdf [in Ukrainian].
Published
2021-08-20
How to Cite
MOLCHANOVA, E. (2021). CIRCULAR ECONOMY AS AN INCLUSIVE ECONOMIC MODEL. Economic Innovations, 23(3(80), 241-253. https://doi.org/https://doi.org/10.31520/ei.2021.23.3(80).241-253