V. Shebanin, G. Reshetilov. Circular economy of the region: theoretical aspect

UDC 332.338

 

V. Shebanin

G. Reshetilov

 

Mykolaiv National Agrarian University

 

The article reveals the essence of the concept of “circular economy” and offers its own definition of this concept as a way of economic development, where the value of products, materials and resources is preserved as long as possible, and waste is significantly reduced or even eliminated. It is determined that the main goal of the circular economy is to create new alternative economic approaches, the task of which is to minimize the negative human impact on the environment.

The model of circular economy based on R-principles of its realization is considered. It is concluded that the 10-R model assumes that the higher the R-ladder, the less resource will be used. Thus, the transition from 3-R model to 10-R model makes you think consciously about the raw materials used in the design process.

It is established that the spread of the circular economy to the national and international level should be combined with the development of the regional economy, namely, starting from one settlement, and then spreading to the whole region. The study identified that the region’s circular economy aims to strengthen the region’s resilience by limiting its dependence on resource inflows, including optimizing the use of materials and energy for the benefit of the regional economy.

It is argued that regions play an important role in the circular transition: first, they play key responsibilities in key sectors of the circular economy, such as transport and solid waste; second, they are laboratories for innovation and experimentation; third, cities in the regions can be promoters, intermediaries and promote the circular economy, with shared responsibility with national governments and stakeholders. The review of the material revealed that the main areas of development of the circular economy of the region are construction, mobility and transportation, food, products and services.

It is established that financial support in the implementation of the circular economy of the region can take various forms, such as grants, loans, tax benefits or investment guarantees, which are offered directly to the public sector or provided through other entities. The advantages (new opportunities for growth and innovation, as well as savings related to resource efficiency) and disadvantages (there is an inability to measure its impact on all sectors of the region) from the introduction and development of circular economy in the region are outlined.

The study concluded that the region’s circular economy offers a new, more rational approach to resource management, including waste. At the same time, regional authorities play an important role in launching and accelerating the transition to a circular economy, setting an example by setting clear frameworks or directly supporting local and regional stakeholders in a greener economy. The circular economy promotes sustainable management of natural resources and helps shape a more sustainable, prosperous and sustainable future for all. To implement it, it is necessary to provide the necessary management conditions and existing economic conditions, namely: updating the regulatory framework; agreed policies, informed and involved stakeholders; monitoring and evaluation of progress and results; clear and reliable business incubators are created.

Keywords: cyclicity, circular economy, region, circular economy model, advantages

 

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