Circular economy: opportunities and barriers

Abstract

Background. The constant growth of the population and the increase in demand for resources in conditions of a lack of food, raw materials, and habitat reflect the urgent need to study both Russian and foreign experience in order to find solutions to these problems. Environmental pollution, persistence of upward trends in emissions of carbon dioxide and other greenhouse gases that lead to climate change, exacerbate the previously noted problems. The purpose of the work is to study and analyze the possibilities that the concept of a circular economy provides for eliminating the negative consequences of the above problems, as well as identifying barriers that arise due to the process of introducing a circular model of economic development. Materials and methods. The study analyzed existing Russian and foreign publications on this issue, as well as data from agencies and companies. To achieve the set goal of this study, general scientific methods of cognition, a systemic and integrated approach, methods of logical, comparative and statistical analysis were used. Results. The main features and aspects of the circular economy concept, which replaces the usual linear economic development model, are considered and analyzed. The effects that this approach can have on the functioning of organizations and society as a whole are studied, as well as the associated opportunities in the field of economics, ecology and society. Barriers to achieving a more effective interaction between social, technological (environmental) and production (economic) aspects of introducing a circular economy in modern conditions are identified. Relevant proposals for overcoming barriers to a circular economy based on the principles of resource efficiency and zero waste are presented. Conclusions. A detailed consideration of this approach to the organization of economic activity indicates the advisability of introducing the principles of a circular model of economic development. The circular economy can transform the production model of the economy, foster economic growth, reduce waste and greenhouse gas emissions, and provide consumers with more durable and innovative products. At the moment, there are significant economic, financial, institutional and technological barriers to the implementation of this concept of sustainable development. A number of proposals are given to overcome these problems, among which one can highlight the development of a sustainable approach, the introduction of digital technologies, scientific understanding of this issue and the need for state support.

Keywords

• circular economy
• environmental pollution
• digital technologies
• green finance
• sharing economy