Keywords: circular economy, linear model, circular model


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


Candidate of Economic Sciences

Kyiv National University of Trade and Economics,

Ukraine, 02156, Kyiv, st. Kyoto, 19


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How to Cite
MOLCHANOVA, E. (2021). CIRCULAR ECONOMY AS AN INCLUSIVE ECONOMIC MODEL. Economic Innovations, 23(3(80), 241-253.