Analysis of the impact of the circular economy concept on economic development

Abstract

Unlike the linear model of economic development, which is based on taking resources from nature, turning them into a finished product and using that product as the final stage of the life cycle of resources, without taking into account the degree of pollution they cause, there is a so-called circular model. The circular model of the economy is an alternative to the linear model. This means that with the circular model, the use of the finished product does not represent the last phase of the life cycle of the resource, but that used product, through the application of various processes, serves as a resource in further production. The main goal of the circular economic model is to reduce waste and pollution, but also to increase the productivity of resources. Longer use of products, machines, and other fixed assets results in higher productivity of the resources that make up their basic input. One of the main goals of the circular economy is the elimination or at least reduction of pollution, and one of the biggest pollutants is the excessive emission of carbon dioxide, whose chemical formula is 〖CO〗2. For this reason, the authors of this research recognized this area as crucial for further economic development. By applying various processes and procedures in developed countries, there was a decrease in the amount of 〖CO〗2emissions, while at the same time there was no decrease in economic activities and production in the economies of those countries, but quite the opposite, at the same time there was an increase in the gross national product (GDP). Serbia should use these countries as an example and, using the good practice of developed countries, start as soon as possible with a more extensive transition from a linear to a circular model of economic development, i.e. bring a series of measures, procedures, laws as soon as possible in order to reduce the emission of 〖CO〗2. In accordance with this, the logical conclusion would be that the scientific goal of this research work is to identify the role of reducing 〖CO〗2 emissions as an important potential for the transition from a linear to a circular model of economic development, without jeopardizing the level of real GDP.

Keywords

• circular economy
• real gdp
• emission of 〖co〗2
• economic development
• balkan region countries
• developed countrie