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



1. Avramenko N.L. Tovstenko A.A. (2019) Terytorialno-vyrobnychi kompleksy yak biznes-model tsyrkuliarnoi ekonomik. Tekhnohennoekolohichna bezpeka Ukrainy: stan ta perspektyvy rozvytku/TEB-2019 [Tekst]: materialy IKh Vseukrainskoi naukovo-praktychnoi internetkonferentsii, Irpin, UDFSU, 04-15 lystopada 2019 r. – Irpin: vydavnytstvo UDFSU. – S. 347-348. (in Ukrainian).
2. Arsova, S.; Genovese, A.; Ketikidis, P.H.; Alberich, J.P.; Solomon, A. Implementing Regional Circular Economy Policies: A Proposed Living Constellation of Stakeholders. Sustainability 2021, 13, 4916. https://doi.org/10.3390/ su13094916 (in Europe).
3. Babak, А.В. (2016). Rozshyrena vidpovidalnist vyrobnyka za vidhody upakovky. Upakovka, 3, 47-49. Available at: http://nbuv.gov.ua/UJRN/Upakovka_2016_3_19. (in Ukrainian).
4. Barytska K.M. (2020) Circular economy in the context of constructive solutions to prevent waste growth and resource scarcity. Science, society, education: topical issues and development prospects. Abstracts of the 2nd International scientific and practical conference. SPC “Sci-conf.com.ua”. Kharkiv, Ukraine. Pp. 21–27. Available at: http://sciconf.com.ua/wp-content/uploads/2020/01/ science-society-education_topical – 37 issues-and-development-prospects_20-21.01.2020.pdf . (in Ukrainian).
5. Bocken, N.M.P.; Olivetti, E.A.; Cullen, J.M.; Potting, J.; Lifset, R. Taking the Circularity to the Next Level:A Special Issue on the Circular Economy. URL: http://publications.eng.cam.ac.uk/907388/DOI: 10.1111/jiec.12606(in UK).
6. Varfolomieiev M. O., Churikanova O. Yu. (2020) Tsyrkuliarna ekonomika yak nevidiemnyi shliakh ukrainskoho maibutnoho v aspekti hlobalizatsii. Efektyvna ekonomika. № 5. URL: http://www.economy.nayka.com.ua/ pdf/5_2020/202.pdf. DOI: 10.32702/2307-2105-2020.5.200 (in Ukrainian).
7. Ghakhovych, N. Gh., Shynkaruk L. (2012). Ekologhizacija promyslovogho vyrobnyctva jak neobkhidna umova podolannja dysproporcijnosti. Svitoghospodarsjka dysproporcijnistj: osoblyvosti, tendenciji, vplyv na ekonomiku Ukrajiny [Greening industrial production as a necessary condition for overcoming disproportionality. World Economic Disproportionality: Features, Trends, Impact on the Ukrainian Economy]: naukova dopovidj / ed. by chl.-kor. NAN Ukrajiny L. V. Shynkaruk. K.: NAN Ukrajiny, In-t ekon. ta proghnozuv, 94–98. (in Ukrainian).
8. Geissdoerfer M. (2017) The Circular Economy: a new sustainability paradigm. Journal of Cleaner Production. № 10. р. 757-768 (in USA)
9. Gureva, M. A. (2019). Teoreticheskie osnovy kontsepta tsirkulyarnoy ekonomiki [The theoretical basis of the concept of circular economy]. Journal of International Economic Affairs, 9(3), рр. 2311-2336. https://doi.org/10.18334/ eo.9.3.40990 [in Russian].
10. Gwara Media – медіа платформа: офіц. сайт. URL : https://gwaramedia.com/reyuz-resajkling-rekonstrukcziya-pryrodnogo-materialu-yak-praczyuyut-czyrkulyarni-mista (in Ukrainian).
11. Ghisellini P., Cialani C., Ulgiati S. (2016) A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems. Elsevier Ltd. Journal of Cleaner Production S. URL: https://www.academia.edu/20541707/A_review_on_circular _economy_the_expected_transition_to_a_balanced_interplay_of_environmental_and_economic_systems(in Europe).
12. Berger T, Frey C.-B. (2017) Industrial renewal in the 21st century: Evidence from US cities. Regional Studies. No 3(51). P. 404- 413(in Europe).
13. European Commission. (2018) A Clean Planet for All: A European Strategic Long-Term Vision for a Prosperous, Modern, Competitive and Climate Neutral Economy; COM Final; European Commission: Brussels, Belgium,. Available online: https: //eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52018DC0773#document1 (in Europe).
14. Zvarych R., Zvarych I. (2019) Rozshyrena vidpovidalnist vyrobnyka v kontseptsii rozvytku tsyrkuliarnoi ekonomiky. Svit finansiv. №3 (60). S. 76-86. (in Ukrainian).
15. Zlotnik M., Melnyk O. (2020) Stratehichne upravlinnia vprovadzhenniam pryntsypiv tsyrkuliarnoi ekonomiky na vitchyznianykh pidpryiemstvakh. Pidpryiemnytstvo ta innovatsii, (12), 112-119. https://doi.org/10.37320/2415-3583/12.19(in Ukrainian).
16. Zuiev V.A. (2003) Pravove rehuliuvannia realizatsii ekolohichnoho upravlinnia v Ukraini ta shliakhy yoho vdoskonalennia. Upravlinnia u sferi okhorony dovkillia ta pryrodokorystuvannia v Ukraini: problemni shliakhy yikh vyrishennia. – K. : VEHO «MAMA 86»,– S. 51-92. (in Ukrainian).
17. Kvasha T.K. Paladchenko O.F. (2014) Green growth as an alternative model of innovative development taking into account environmental challenges. Nauka ta naukoznavstvo, 2014. – № 2 (84). – P. 50-60(in Ukrainian).
18. Kirchherr J., Reike D., Hekkert M. (2017) Conceptualizing the circular economy: An analysis of 114 definitions. Resources, Conservation and Recycling. № 14. Р. 221—232.
19. Kulczycka J. (2019) Definicje i ich interpretacje. Gospodarka o obiegu zamkniętym w polityce i badaniach naukowych. Kraków: Wydawnictwo IGSMiE PAN, S. 9–15. URL: https://circulareconomy.europa.eu/platform/sites/default /files/the_circular_econom y_in_policy_and_scientific_research.pdf (in Europe).
20. Krysovatyi A. I., Sokhatska O. M., Skavronska I. V. ta in.(2018) Chetverta promyslova revoliutsiia: zmina napriamiv mizhnarodnykh investytsiinykh potokiv: monohr. Za nauk. red. d.e.n., prof. A. I. Krysovatoho ta d.e.n., prof. O. M. Sokhatskoi.. Ternopil: Osadtsa Yu. V. 478 s. (in Ukrainian).
21. Lojko, V.V. (2019). Problemy rozvytku cyrkuljarnoji ekonomiky v Ukrajini. III International Scientific Conference From the Baltic to the Black Sea: the Formation of Modern Economic Area: Conference Proceedings, August 23th, 2019. Riga, Latvia: Baltija Publishing. 24-27. (in Ukrainian).
22. Lozo O. V., Kordii N. H. Pravove vyznachennia elektronnykh vidkhodiv v Ukraini ta Yevropeiskomu Soiuzi. Mizhnarodnyi naukovyi zhurnal «Internauka». Seriia: «Iurydychni nauky». 2019. № 14 (76). URL: https://www. google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwic_s3 d4KztAhXhkIsKHdLRAtwQFjABegQIAhAC&url=https%3A%2F%2Fwww.internauka.com%2Fuploads%2Fpublic%2F15728628321569.pdf&usg=AOvVaw20sK RzFINEJqKJ5YzRLRqp. (in Ukrainian).
23. Miroshnychenko S. Ekonomika zamknenoho tsyklu yak zaporuka staloho rozvytku svitovoi spilnoty. URL: https://www.gurt.org.ua/articles/30308
24. OECD: (2019) Forecast of global material resources until 2060: economic factors and environmental consequences URL : https://doi.org/10.1787/9789264307452-en (in Europe).
25. Pilyugina, M. (2016), “The circular economy model as a new approach to sustainable development”, Stroitelstvo — formirovanie sredy zhiznedeyatelnosti, vol. 31, pp. 148—155
26. Pearce D. W., Turner R. K. (1990) Economics of natural resources and the environment : Harvester Wheatsheaf, London, 378 pp.
27. Ruda M. V., Myrka Ya. V. (2020) Tsyrkuliarni biznes-modeli v Ukraini. Menedzhment ta pidpryiemnytstvo v Ukraini: etapy stanovlennia ta problemy rozvytku. Tom 2, №1. S. 107-121. DOI: https://doi.org/10.23939/smeu2020.01.107
28. Geissdoerfer M. (2017) The Circular Economy: a new sustainability paradigm. Journal of Cleaner Production.. № 10. р. 757-768.
29. Sauvé, S., Bernard, S. and Sloan, P. (2016) Environmental Sciences, Sustainable Development and Circular Economy: Alternative Concepts for Trans-Disciplinary Research. Environmental Development, 17, 48-56. https://doi.org/10.1016/j.envdev.2015.09.002
30. Tymoshenko I.L., Dronova O.L. (2018) Circular economy for the conditions of Ukraine. № 9(208). DOI: 10.5281/zenodo.1485209 (in Ukrainian)
31. Fletcher K. Sustainable fashion and textiles: design journeys, Earthscan from Rutledge / Taylor & Francis Group, London. 2014. URL: https://www.researchgate.net/publication/286774073 //doi.org/10.4324/9781849772778 (in English).
32. Haas, W., Krausmann, F., Wiedenhofer, D., Heinz, M. (2015). How Circular is the Global Economy?: An Assessment of Material Flows, Waste Production, and Recycling in the European Union and the World in 2005. Journal of Industrial Ecology. 19, p. 765–777. URL: https://onlinelibrary.wiley.com/doi/full /10.1111/jiec.12244. (in English).