Circular Economy: Tendencies and Development Perspectives

The research represents the analysis of the circular economy and its essential characteristics of circular economy in the modern world. The circular economy makes it possible to "detach" the country's GDP growth from the consumption of natural resources and environmental pollution. It explains how the circular economy should stimulate sustainable development and inclusion in the system of Sustainable Development Goals. The research presents how the circular economy can ensure labor productivity, efficient environmental and energy conservation, and the creation of new jobs. It analyzes principles and tools of the circular economy. This research shows how economies should move from the current linear take, make, use, dispose practice to reuse and longer product life. It shows how current business models change and what principles are used to develop a circular economy. It examines the circular approaches based on the 3-R principle: Reduce: reduce resource use and prioritize renewable materials; Reuse: make the most of the products; Recycle: recover by-products and waste for further use in the economy. The research shows how seven key tools of the circular economy may be applied. It reveals the international experience in implementing the circular economy principles. The research describes the benefits that the transition to a circular economy brings. It analyses major circular economy barriers, such as financial, social, and technical. The research distinguishes the benefits of a circular economy. They include a decrease in costs, a cleaner and safer environment, sensitive use of natural resources, new job creation, reducing dependence on imports. This research presents the examples of Norrköping Industrial Symbiosis Network in Sweden, Latvia’s circularity business models.

Organization of Business Activities Taking into Account Environmental and Economic Aspects

One of the most urgent environmental problems today is the pollution of the environment by emissions of harmful substances and industrial waste. The negative impact on the environment and people is becoming more widespread, and its disposal methods inhibit the development of the economic system. In a market economy, entrepreneurs are not interested in increasing environmental costs, which naturally lead to higher production costs and reduce profits. The impact on the environment is becoming more widespread every year and has led to an ecological crisis in some parts of the world. Waste recycling has been constantly discussed since a person “produces” more than 250 kg of household waste per year. At the enterprise, these figures reach 10 000 kg. In recent years, Ukraine has imported about 30-50 thousand tons of PET granulate, which is gradually accumulating in landfills in the form of packaging, bottles, films. Such hazardous pollutants affect the environment through soil and water. In contrast, Ukraine does not yet have successful experience in waste management. In our opinion, such behavior is the ignorance of the population about waste disposal and replacement of a particular product with a more environmentally friendly one. The functioning of enterprises and farms does not always have the equipment to dispose of waste, and there is no room for the disposal of unnecessary products and raw materials. However, the problem of lack of innovative equipment arises due to a lack of adequate funding. Therefore, the lack of possibilities for a comprehensive solution to the situation creates a barrier, which does not allow to take proper measures to eliminate and reduce the amount of garbage. Despite many regulations and legal frameworks for regulating waste management, there is no cost-effective policy, and there is no regional waste management program and plan for their proper disposal. It can be concluded that the recycling and disposal of waste will reduce the need for waste incineration, create conditions for improving the economic component of the region and the country as a whole with an account of environmental quality standards. The paper pays attention to the essence of waste disposal; identified ways to recycle garbage.

Analysis of Externalities of Economic Activity of the Enterprise

The problems of research of internalities and externalities with the further development of the general classification of externalities of economic activity of the enterprise are defined. The influence of negative and positive externalities on society and enterprise is considered. The concept of negative externalities differs from transaction costs. It is noted that transaction costs can be reflected in cash and can be offset by market inclusion in the price of the products, but this is not possible for externalities. It is emphasized that the purpose of economic activity of any enterprise is to exceed the positive externalities over the negative and achieve the maximum difference between them. The different time duration of the impact of the enterprise on third parties is given. The sign of externalities on the scale of action is emphasized. The externalities of the enterprise are considered in their essence according to the principles of sustainable development, highlighting economic, social and environmental externalities. It is emphasized that economic externalities can arise in the course of the whole business cycle of full-fledged work of all parts of the enterprise. In contrast to economic, social externalities affect people both within the enterprise, that is workers and citizens of the society in which the enterprise operates. And when it comes to environmental externalities, the mediator between the source and recipient of externalities is the environment. Externalities are distinguished according to the means of accounting and the degree of influence on the subject of perception. The necessity of regulation of externalities through internalization and actions of the enterprise with the help of state and market instruments is substantiated. It is emphasized that internalization is the transformation of negative externalities into positive ones in terms of convergence of marginal costs and benefits of the enterprise to marginal social costs and utility.

Business Process Model for Monitoring the Automatic Payments in the "Client-Bank" System

The innovative development of banking presupposes modernization in the approaches to anti-money laundering. The article considers the issue of financial monitoring of banking operations without bank employees’ participation through the "Client-Bank" system. Two models for monitoring the automatic payments in the "Client-Bank" system are identified. The list of functions performed by the "Client-Bank" system in terms of types of clients: individuals and legal entities (including individuals-entrepreneurs) was determined. The first model describes general indicators of transactions that have the risk of money laundering. The second model focuses on the specific features of the "Client-Bank" system functionality for legal entities or individual entrepreneurs. Several criteria for the riskiness of the operation in terms of money laundering are considered. The developed business process model takes into account the verification of the participant's affiliation to countries that do not implement or improperly implement the recommendations of intergovernmental organizations, the participant's affiliation to politically significant or related persons and the withdrawal of capital abroad, including offshore areas . In addition, checks of financial condition of counterparties, regularity of receipts of payments and cash withdrawals, circulation of foreign currency, loan repayment, receipt of a significant amount of cash, ip-address of the client and description of the transaction are included. A feature of the business model for legal entities is the verification of NACE compliance, analysis of the number of contractors, analysis of the timeliness of tax payments. Directions for further development of this study identify the possibility of intellectualizing the financial monitoring system and improving the regulatory framework in the system "Client-Bank" to enhance the system of anti-money laundering in banking institutions.

Formation of innovative tools for economic policy in the context of the global economic crisis development in Ukraine 2019-2020

The paper provides an overview of the largest economic crises of the twentieth and twenty-first centuries ("Great Depression", crisis of 2008). Indicators for assessing economic crises are systematized. The main indicators characterizing economic crises are highlighted: the exchange rate, GDP, inflation, with the help of which the study of the 2019-2020 crisis was carried out. Fluctuations of stock indices of the main countries of the world and changes in the exchange rate of Ukraine; the rate of growth of world GDP; the inflationary processes in the world and in Ukraine are characterized. The recession at the beginning of 2020, due to both economic transformations and the COVID-19 pandemic, does not have unambiguous development forecasts. This is primarily due to the presence of a significant human factor in the course of this recession. Fiscal and monetary measures of countries, international organizations are the main instruments for overcoming the crisis. Crisis 2019-2020 forms both negative and positive economic phenomena. One of the most important positive phenomena is the growth of competition and the formation of demand for basic innovations of the sixth technological order, the introduction of which will significantly increase the competitiveness of goods and services of Ukrainian companies in the international space. The directions of response to the deployment of the 2019-2020 crisis in Ukraine are proposed.

TRANSFER OF ENVIRONMENTALLY FRIENDLY ENERGY INNOVATIONS DURING SMART GRIDS DEVELOPMENT

The article considers the conditions created in different countries of the world to implement processes that focus on the modernization of the energy sector of the economy through the widespread introduction of advanced innovative energy technologies. The paper argues that there is a link between economic and social development indicators and the results of the functioning of their energy sector, namely the existing impact of energy on the positive dynamics of economic and social indicators. The spread of energy innovations is a critical factor for the modernization of the energy sector following modern requirements for energy production, transportation, and distribution. Accordingly, investments directly in the energy sector and research and development activities aimed at creating new energy technologies are considered an essential indicator of the formation of preconditions for the transfer of energy technologies, including innovation. One of the leading indicators that characterize the existing and potential opportunities for new technologies is the number of innovative enterprises. Accordingly, one of the tasks aimed at modernization and further development of the energy system should be to promote the creation and support of innovative enterprises. It requires creating a new or improvement of the existing mechanism for creating a favorable business environment for innovation. Therefore, the article mentions the need to study the relationship between the number of innovative enterprises in the country and public spending on research and development. For complete coverage of the issue, the paper presents information on the volume of these expenditures in terms of GDP. The analysis of this information led to the conclusion that there is no connection between the number of innovative enterprises and the amount of public expenditure on R&D. This connection is typical of a limited number of countries. At the same time, the experience of some countries shows that in addition to state support for innovation and innovation transfer, a significant role is played by established and functioning market mechanisms that allow achieving a high level of innovation development.

Development of the Theory of Cost Management of Stakeholders of the Enterprise in Foreign Tesearches

Thes article proves that the actual direction of effective enterprise management is the use of network management concept of production and commercial activities, which is based on the theory of stakeholders. This area of research is widely discussed in foreign economic publications, where a significant number of innovative developments and proposals have already accumulated. Research, generalization and use of foreign experience in the field of stakeholder theory are extremely important for domestic industrial enterprises. The purpose of the study is to study the methods of substantiation of theoretical and methodological approaches and practical recommendations for managing relations with stakeholders on the basis of a cost approach, identification and grouping of stakeholders of industrial enterprises taking into account their interests. Achieving this goal is carried out using a conceptual approach to the formation of total value, which includes the value of the industrial enterprise and the value of its stakeholders, who jointly create the overall contribution of this economic entity in achieving society as a whole. The proposed approach differs positively from the conceptual provisions available in the theory of stakeholders and can be based on the theoretical provisions of managing the relationship of an industrial enterprise with its stakeholders on the basis of a cost approach. The implementation of the proposed approach allows an industrial enterprise to rank stakeholders by value, analyze the dynamics of the structure and parameters of flows of material and financial resources of the enterprise and its stakeholders.

Informational Technologies as a Tool for Local Level Sustainable Development Goals Implementation

The research represents the interdisciplinary approach for sustainable development of local communities through the implementation latest innovative approaches and closing the gaps by modern technological possibilities. The paper proposes methodological approaches for informational and analytical support for decision-making on sustainable development of local territorial entities (for example, united territorial communities, BTSEE). It is emphasized that the climate change forecast must be implemented to local, territorial development strategies. The central hypothesis of this research is that the competitiveness and efficiency of economic development local communities can be reached in the framework of combating climate changes with the implementation of information technologies on all steps – from planning until realization. It emphasized that the climate change forecast must be implemented to local, territorial development strategies. The way of implementation is that the territorial development strategies take into account changes in the functional purpose of the territories and determine the directions of prospective activity, taking into account changes in agro-climatic and infrastructural conditions of development. For this purpose, it is proposed to create a complex of information and analytical support for the sustainable development of local, territorial entities. The permissible value of the reverse subsidy, according to our calculations, should be no more than 25 %. It was demonstrated that it is possible to enable the sustainable development of financially capable communities if a flexible, financially based approach is used to determine the reverse subsidy's amount. Implementing the proposed mechanisms for the sustainable development of the BTSEE involves active consultation with local leaders and government representatives in charge of government decentralization.

Regional Economic Development in The Context of the COVID-19 Pandemic and the Economic Crisis

It is important to analyze the manifestations of the crisis at the regional level, which allows both regional (local) and national authorities to develop effective support tools. From this point of view, it is important to clearly understand which aspects of economic development the crisis has a key impact on, and whether such impact is uniform across different sectors and areas of economic development. Much attention is paid to the problem of assessing the state of the business environment. However, the main disadvantage of most of them is that they are sometimes difficult to conduct in terms of operational analysis and availability of open data. The object of research is the processes of studying the state of the region's economy. The subject of the research is the impact of the COVID-19 pandemic and the current economic crisis on the region's economies. In the process of scientific research, we solved such tasks: identification of key problematic factors in relation to regional economic development, including caused by pandemic and lockdown; reliable, freely available and up-to-date sources of statistical information on regional economic development are identified; a comprehensive method of generalizing the impact of the COVID-19 pandemic and the economic crisis on regional economic development. We proposed to analyze the impact of the COVID-19 pandemic and the current economic crisis on the economic development of the regions of Ukraine on the example of Sumy region. The analysis is based on open data from static authorities, which periodically publish monthly and quarterly information. The study confirmed the serious negative impact of lockdown and pandemic on the economic development of the region in a number of key indicators: the index of industrial production, the volume of industrial products sold, freight turnover and passenger turnover. At the same time, we observe a generally neutral impact of the crisis on such regional indicators of economic development as the volume of commodity export and import transactions and the stability of retail trade.

State Housing Policy: European Funding Practices and Realities of Ukraine

The problem of citizen housing providing as a key prerequisite for sustainable development of Ukrainian cities has become especially relevant in the last decade, given a number of factors and objective circumstances. Such circumstances include both the global trend of urbanization and the challenges of today, which are the result of military aggression in the east of the country and the COVID-19 pandemic. All this raises the question of the need to intensify the state housing policy and finding non-standard models and additional reserves and funding sources for housing construction in Ukraine. The authors analysed the main approaches of European countries in the field of social housing. The existence of national peculiarities of the implementation of the state housing policy has been established, as well as the common features of the relevant public service provision by the governments of the EU member states to their citizens have been determined. The authors found that European countries, as a result of a long evolutionary path of development, mostly rely on the model of social housing sector support, which provides subsidies to both the developer during the construction of such housing and the citizens who find themselves in difficult circumstances. At the same time, social housing for the needy is not sold, but rented on preferential terms. The authors of the article on the basis of the Ukraine legislation analysis, according to the results of the proposed funding schemes effect assessment of social housing construction identified the main areas of optimization and further research. It is clearly illustrated that one of the ways to ensure the availability of such housing for those who need it is to reduce the cost of construction through the use of tax privilege for housing cooperatives, the benefits of small business taxation preferences and innovative methods of combining original organizational legal forms of doing business in combination with the use of modern financial instruments, such as derivatives.