Circular economy model: generating benefits for sustainable development

Oleksandra Mandych, Natalia Babko, Galyna Pasemko, Olga Girzheva, Oksana Taran


Abstract


The article is devoted to the definition and analysis of the circular economy as the basis for sustainable development of the country. The author identifies the main differences between the circular economy model and the traditional model, characterised by close interconnection and interdependence of all industries, production links and trade and consumer relations, which ensures maximum benefit from available resources. The principles of the circular economy are considered and the main advantages and disadvantages of the circular economy model are revealed. The economic advantages of the closed-loop economy include the formation of a sustainable demand for secondary material resources (and, as a result, a reduction in demand for primary resources in the long term); creation of economic incentives for further investment in the use of secondary raw materials due to the exhaustion of primary material resources; reduction of costs for the maintenance of waste storage areas; and reduction of environmental taxes. The environmental benefits of the circular economy are represented by reduced carbon dioxide emissions; reduced landfill and waste storage areas; reduced consumption of scarce and limited resources, etc. Social benefits are due to an increase in the level of social responsibility for the careful use of material resources; ensuring an environmentally friendly attitude to used goods; an increase in the number of jobs for secondary material resource technologists, etc. Examples of the implementation of the basic principles of the circular economy are given, and thanks to the involvement of new business models, technological enterprises have become able to comply with the principles of the closed-loop economy. The national peculiarities of Ukraine's transition to the circular economy model are analysed.


Keywords


circular economy; circular economy; sustainable development; economic benefits; environmental benefits; social benefits

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References


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Copyright (c) 2023 Oleksandra Mandych, Natalia Babko, Galyna Pasemko, Olga Girzheva, Oksana Taran

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

 

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Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa


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