Circular economy model: generating benefits for sustainable development

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


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.


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

Full Text:



Dubel, M. (2022). Circular economy as a mechanism for achieving sustainable development goals in the context of globalisation and digitalisation of the world economy. Economy and Society, 39 [in Ukrainian].

Chala, V. S. (2022). The development of the circular economy concept: origins and transdisciplinary research. The 1 st International scientific and practical conference “Science and technology: problems, prospects and innovations” (October 19-21, 2022). CPN Publishing Group, Osaka, Japan. Р. 475 [in Ukrainian].

Pakhucha, E., Babko, N., Bilousko, T., Bilousko, R., Vynohradenko, S. (2021). Strategic Analysis of Export Activities of Enterprises to Ensure Sustainable Development. European Journal of Sustainable Development, 10(4), 251-270 [in English].

Vovk, V. Yu. (2022). Global experience in the transition to circular economy models based on the use of waste-free technologies in the agricultural sector. Economic space, 179, 91-99 [in Ukrainian].

Omelianenko, O. M. (2022). Strategic issues of building business models of the circular economy. Economy and state, 1, 79-82 [in Ukrainian].

Sysoiev, O. V. (2022). Subjects of training of specialists in the circular economy in the Republic of Poland. Scientific notes. Series: Pedagogical Sciences, 203, 136-145 [in Ukrainian].

Stoianova-Koval, S. (2022). Challenges of agricultural enterprises in the context of the circular economy model. The III International Scientific and Practical Conference «Society and science. Problems and prospects» (January 25 – 28, 2022). London, England. 141-144 [in Ukrainian].

Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM


  • There are currently no refbacks.

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

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


Articles are distributed under Creative Commons Attribution  International 4.0 (CC-BY-NC 4.0) 

Science Works Journal "Ekonomichnyy analiz"

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

© West Ukrainian National University

© «Ekonomichnyy analiz», 2007-2023