Factors of the circular economy development

2020 ◽  
Vol 13 (4) ◽  
pp. 430-447
Author(s):  
S.V. Ratner

Subject. Today the circular economy is viewed as a new model of economic growth that allows overcoming resource constraints. Despite the general understanding that environmental problems are the main incentive for the transition to circular models of production and consumption, the underlying factors in the development of this economic model have not been fully studied in modern literature. Are circular production models available only to technologically highly developed rich countries, or, conversely, poverty and a total lack of resources are the best incentive for the development of a circular economy? Objectives. I study the influence of such factors as the general economic and innovative development of the country, as well as the State's innovating activity to form and develop circular models of economic growth. Methods. The research was carried out with methods of econometric modeling. Eurostat data were used as an underlying source of information. Results. The study showed that the high level of the national economic development positively influences the resource efficiency of an economy, but more advanced countries produce more waste in the consumption sector. Production and consumption waste recycling demonstrates better trends in less economically developed countries. Countries with substantial innovation expenditures tend to have more robust municipal and industrial waste recycling technologies, as well as a more effective use of secondary materials. The development of an e-waste recycling system is essentially dependent on government incentives for innovation in this area. Conclusions. The findings can be used for outlining national federal and regional programs for the development of production and consumption waste recycling mechanisms in Russia. Social entrepreneurship and business initiative may appear one of the priority mechanisms spurring the circular economy in Russia through traditional patterns of resource-saving consumer behavior.

2020 ◽  
pp. 138-151
Author(s):  
Liudmila Aleksandrovna Kostygova

The article is based on the analysis of world experience in the field of modern strategies for recycling, utilization and neutralization of waste and identifies ways to improve these processes. It is established that the main focus is on the use of the principles of the circular economy, areas of its development are highlighted. The creation of a closed economic cycle is particularly important area for the development of circular economy. It allows to achieve a sharp reduction in the consumption of primary raw materials and ensure maximum use of waste. It is noted that particular importance is currently being paid to the issue of household waste recycling. It is pointed out that in Russia, a system of legislative and organizational measures has been developed to solve this problem. The author comes to the conclusion that foreign and domestic experience shows that the implementation of circular economy approaches at the regional and interregional level is most fully implemented in cluster structures.


Author(s):  
Mine Gerni ◽  
Murat Nişancı ◽  
Ahmet Alkan Çelik ◽  
Ziya Çağlar Yurttançıkmaz

The emphasis on entrepreneurship with the importance for economic growth and development is increasing day by day. This situation is particularly feeding the level of development, but also providing to have high level of economic, social, technological and cultural infrastructure in developed countries. In other words, this is particularly the level of sophistication feeding, but also in developed countries, economic, technological, social and cultural infrastructures are also leading to a high level of entrepreneurship. In other words, more entrepreneurial individuals grow in the country which has economic and social conditions in relevant level and this increase the importance of determination on the performance of economic growth. In this study, until the 1990s, private enterprise was almost zero in 1991 to the former socialist countries with the transition process relations of production and consumption was abandoned from planned economy conditions to in the conditions of market economy. In this aspect, the factors affecting economic growth, entrepreneurship and employment variables are the level of savings. After econometric analysis, all independent variables are found significant and the impacts of those variables on economic growth are examined positive. This showed that entrepreneurship took a place as an important factor on growth performance of countries in development such as labour and capital.


2021 ◽  
Vol 11 (1) ◽  
pp. 19-35
Author(s):  
Nicolae Pintilie ◽  

This paper aims to create an image of progress towards circular economy registered by European Union countries through specific indicators. In this way, this paper is based on the study and analysis of the 13 indicators, grouped on 4 pillars: Production and consumption, Waste management, Secondary raw materials, Competitiveness and innovation. After the presentation of the methodology, the paper develops an analysis in time and space of the selected indicators, then an analysis of the countries with their grouping on clusters, creating a map of them and highlighting the current situation of circular economy in the European Union. Moreover, the paper also presents the evolution of the countries regarding circular economy, which has a big importance taking into account that in the European Union the preoccupations for this concept is higher from one period to another. Among the most interesting results are: (1) a massive concentration of countries with problems for Waste management pillar; (2) Europe is one of the regions with the largest contribution in terms of circular economy, but the concept is developing differently from one country to another; (3) The scoreboard evolution is particularly useful in revealing the continuous actions adopted by countries in order to facilitate the conversion to circular economy. Finally, the paper presents possible limits of the research, but also future directions of its development.


2017 ◽  
Vol 18 (4) ◽  
pp. 745-757 ◽  
Author(s):  
Neringa SLAVINSKAITĖ

The paper analyses the fiscal decentralization effects on economic growth in unitary countries of European Union for the period 2005–2014. The empirical analysis was based on the multiple regression method. The fixed effect panel model was used as framework for the analysis. In order to examine the different impact of fiscal decentralization, the same analysis was applied to subsets of countries categorized into two groups according to countries’ level of economic development. This further analysis found that there is positive relationship between fiscal decentralization and economic growth in low level of economically developing countries and no relationship in high level of economically developed countries. These results suggested that fiscal decentralization is not always instrument for promotion of economic growth, which means that country’s economic development level is an important factor when introducing reform of fiscal decentralization. The originality of this article – new fiscal decentralization index and evaluated fiscal decentralization level influence for countries economic growth.


Oikonomics ◽  
2021 ◽  
Author(s):  
Federico Demaria

For a sustainable post-Covid-19 recovery strategy, humanity faces two major challenges: 1. Just prosperity: The creation of a resilient and fair economy that delivers prosperity for all; 2. Public and planetary health: protect human health, together with the reduction of environmental impacts below thresholds of planetary boundaries including greenhouse gas emissions. The Covid-19 crisis could represent an opportunity for responses that integrate different goals, or a drawback if some are prioritized without considering their impacts on the others. New kinds of informed solutions are needed to ensure long-term sustainability in social, economic, and environmental terms. This article addresses the research question: How could developed countries manage a sustainable recovery that provides a good life for all within public and planetary health? First, it argues that economic growth is not compatible with environmental sustainability. Green Keynesianism is based on the hypothesis that economic growth can be decoupled from environmental impacts, but this has not happened and it is unlikely to happen. Second, it introduces degrowth as an alternative to green growth. Degrowth challenges the hegemony of economic growth and calls for a democratically led redistributive downscaling of production and consumption in industrialised countries as a means to achieve environmental sustainability, social justice, and well-being. Third, it traces the recent evolution of the term degrowth from an activist slogan to an academic concept. Last, it calls for an alliance of alternatives that could foster a deeply radical socio-ecological transformation.


Author(s):  
Iryna Lutsenko

The world economy is characterized by linearity, namely the model "product of raw materials-production-consumption". This concept has already lost itsviabilitydue to a number of factors, namely: the depleted global ecological system, socio-economic and resource constraints. Through various environmental contaminants sharply reducedand thequality of life disappear goals populations of animal and plant life. Today, there is an alternative to the linear model of the economy - a circular economy, the main task of which is to restore the ecosystem, saving resource potential, financial and human resources through reverse and careful treatment.To form a new model of economy, governments of developed countries use different tools, but there is not always an understanding of the importance and effectiveness of this concept. The article considers the essence and basic principles of circular economy. As a basis for the implementation of the concept of circular economy are considered closed supply chains and as the main tool for the implementation of tasks - reversible logistics.Managing reverse logistics is a complex task that requires a systematic approach and significant resources.The goal of building reverse flows is to reduce costs and increase profits.The author's interpretation of the essence and content of reverse flows in closed supply chains, which include return and return flows, is presented in the article..The constituent elements of reversible material flows in closed supply chains are investigated.The main problems in the formation of closed supply chains are identified, namely the optimization of inventory management throughout the chain.A methodical approach to inventory management in closed supply chains, which provide for multilevel inventorymanagement, is proposed.The use of a set of inventory management modelsthat allow to coordinate actions for inventory management and are adequate to the practice of doing business in a circular economy.Conclusions and recommendations on the peculiarities of the formation of closed supply chains, the list of flows as elements of reversible logistics, methodological approaches to the use of inventory management models in complex logistics systems built on a circular basis (circular).


2020 ◽  
Vol 23 (1) ◽  
pp. 1-23
Author(s):  
Amrita Bahri ◽  
Monica Lugo

ABSTRACT In the past few months, we have witnessed the ‘worst deal’ in the history of the USA become the ‘best deal’ in the history of the USA. The negotiation leading to the United States–Mexico–Canada Agreement (USMCA) appeared as an ‘asymmetrical exchange’ scenario that could have led to an unbalanced outcome for Mexico. However, Mexico stood firm on its positions and negotiated a modernized version of North American Free Trade Agreement. Mexico faced various challenges during this renegotiation, not only because it was required to negotiate with two developed countries but also due to the high level of ambition and demands raised by the new US administration. This paper provides an account of these impediments. More importantly, it analyzes the strategies that Mexico used to overcome the resource constraints it faced amidst the unpredictable political dilemma in the US and at home. In this manner, this paper seeks to provide a blueprint of strategies that other developing countries could employ to overcome their negotiation capacity constraints, especially when they are dealing with developed countries and in uncertain political environments.


Author(s):  
Susanna Aghajanyan ◽  
Gagik Aghajanyan

The economy ecologization process should take into account the development needs of each nation by developing effective systems of production and consumption. That is why in the system of measures ensuring the transition to a “green” economy, overcoming poverty and expanding the livelihoods of the most vulnerable sections of society should be a priority. At the same time, the convergence of economic and environmental policies, where prospects for economic growth are at the forefront, avoiding stress on nature resulting in unpredictable and qualitative implications for natural resources is important. Today, with resource constraints and harmful emissions, the main problem lies in the complete elimination of reliance on economic growth materials and energy resource use, which involves the identification of opportunities to increase the efficiency of the material sectors of the economy.


2018 ◽  
Vol 10 (11) ◽  
pp. 4077 ◽  
Author(s):  
Seppo Junnila ◽  
Juudit Ottelin ◽  
Laura Leinikka

The circular economy has become a popular concept, suggesting economic growth with fewer emissions and reduced ownership as one of its key parameters. Based on the literature, however, it appears that the concept has not been sufficiently contested empirically. This study evaluates the carbon and material footprint implications of reduced ownership in the context of household consumption. We found that the reduced ownership does not automatically reduce the environmental impact of the production–consumption system in the context of households. Reduced ownership in the study did not have any noticeable influence on material footprint, and in the case of carbon footprint, it only had a mild positive influence in low-income households. The result is surprising, since both intuitively as well as based on the literature, moving from ownership to services should increase resource efficiency and reduce environmental impact. In the context of households, actual consumption and investment behavior seem to override the theoretical benefits of reduced ownership. In our study, the circular economy rebound and the willingness to invest in green products seems to explain quite well why the environmental impact of consumption is not reduced when households move from ownership to services. Households appear to spend the money saved from reduced ownership on carbon-intensive services; when they own the products themselves, they invest a more-than-average amount in the life cycle performance of the products. The paper’s implications for the circular economy as a concept for decoupling economic growth from environmental pressure is that one of its primary qualities, sharing and renting services instead of owning things, seems to offer only a partial solution for the dilemma. In order to fully benefit from reduced ownership, the circular economy should emphasize simultaneous change in both the production and consumption of services, as it seems that simply offering products for rent does not automatically reduce the environmental impact of the final demand.


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