Sumy State University (Sumy, Ukraine)
Sumy National Agrarian University (Sumy, Ukraine)
The aim of the article. The article examines the conceptual, essential and organizational basis of “circular” economy as a tool of “greening” the economy and achieving the sustainable development.
Results. “Circular” economy is seen as a sphere and a form of nature-social development, in which the reproduction of resources, information and energy, forming and developing of mechanisms and tools of their repeated (cyclic) involvement in the system of economic relations are provided on the innovative basis. A distinctive feature of the proposed approach is a flow-process understanding of the nature of reproduction processes in the socio-economic system, and consequently, of the turnover of resources and energy within this system. It is emphasized that the concept of “circular” economy is focused not only on resource use, and to a greater extent on resources forming, resources creation, thus laying the methodological basis for resources management, consistent with the objectives and tasks of the “green” economy and sustainable development. The authors examine the implementation of the “circular economy” not only as a set of organizational and economic measures within the existing structure of the region and the country’s economy, but rather as an orientation to the restructuring of industrial relations (economic, organizational, socio-economic, ecological-economic) and productive forces.
In the context of the political determination of the need to build economic relations on the basis of “circularity” of resources in Europe and Asia, there are explored the mechanisms of the “closing” of material resource cycles at different levels of economic systems: economic units; municipalities and regions; national and global. It is concluded that the implementation of “circular” economy at the national level will result in the transformation of modern constitution, the structure and nature of the global material chains: the suspension of their expansion as a result of forming the “closed” national economies (self-sufficient in the resource provision) or forming the global recycling chains.
The analysis of China’s foreign economic activity shows that the republic, which is focusing on the implementation of the “circular” economy from 2002, shows the certain self-sufficiency in the resources provision to support own domestic consumption as well as to produce export flows currently. It is emphasized that, against the background of the implementation of the “circular” economy, the tendency to halt global production processes of fragmentation on a geographical basis is more and more clear, reflecting the formation of closed national economies.
Conclusions and further research. On this background there were formulated the problematic strategic issues of further development of Ukraine’s economy in terms of the global development of “circular economy”: the high risk of further price fluctuations in key domestic export-oriented sectors, i.e. agriculture and metallurgy, requires the revision of the export policy, as well as reformation of industries with the focus on import substitution and on formation of domestic “full” production cycle; the high risk of further development of the market of imported re-use goods in Ukraine against the background of the failure to form a proper waste treatment infrastructure threatens significant worsening of socio-ecological-economic situation in Ukraine in the short term.
Keywords: “circular” economy, industrial ecology, flow-process approach to resource management, sustainable development, resource cycles, global material supply chains, recycling, resources recovery, resources forming
JEL Classification: F01, F63, Q57.
Cite as: Mishenin Ye. & Koblianska, I. (2017). Perspectives and mechanisms of “circular” economy global development. Marketing and Management of Innovations, 2, 329-343. https://doi.org/10.21272/mmi.2017.2-31
This work is licensed under a Creative Commons Attribution 4.0 International License
- Bystryakov, I., & Klynoviy, D. (2014). Metodychni pidkhody do udoskonalennia ekonomichnoi otsinky pryrodnoho bahatstva Ukrainy [Methodical approaches to improvement of the economic estimation of natural wealth of Ukraine]. Ekonomika pryrodokorystuvannia i okhorony dovkillia – Economics of Nature and the Environment, 6, 16-19 [in Ukrainian].
- Galushkina, T.P., Musina, L.O. & Humarova, N.I. (2012). Natsionalna polityka “zelenoho” zrostannia v Ukraini [National policy of “Green” growth in Ukraine]. Odesa, Institut problem ry`nku ta ekonomiko-ekologichnyh doslidzhen’ NAN Ukrayiny` [in Ukrainian].
- Melnyk, L.H. (2016). «Zelenyye» zadachi Tretyey promyshlennoy revolyutsii [“Green” Challenges of the Third Industrial Revolution]. Mekhanizm rehuliuvannia ekonomiky – Mechanism of economic regulation, 2, 9-24 [in Russian].
- Mishenin, Ye., & Koblianska, I. (2012). Lohistychne upravlinnia promyslovym vyrobnytstvom u konteksti rozvytku «zelenoi» ekonomiky v Ukraini [Logistical management of industrial production in the context of green economy development in Ukraine]. Ekonomist, 1, 8–12 [in Ukrainian].
- Mishenin, Ye.V., & Degtyar, N.V. (2015). Ekonomika ekosystemnykh posluh: teoretyko-metodolohichni osnovy [Economics of ecosystem services: theoretical and methodological foundations]. Marketynh i menedzhment innovatsii – Marketing and Management of Innovation, 2, 243-258 [in Ukrainian].
- Musina, L.O., & Kvasha, T.K. (2014). Resursoefektyvna ekonomika: yevropeiski tendentsii ta uroky dlia Ukrainy [The resource-efficient economy: european trends and lessons for Ukraine]. Ekonomichnyi analiz : zbirnyk naukovyh prats – Economic analysis: collection of scientific papers, 18 (1), 51-62 [in Ukrainian].
- Potapenko, V.G. (2012). Stratehichni priorytety bezpechnoho rozvytku Ukrainy na zasadakh “zelenoi ekonomiky” [Strategic priopities of safe development of Ukraine on the bases of “green economy”]. Kyiv, Nacional`ny`j insty`tut strategichny`h doslidzhen’ [in Ukrainian].
- Sergiienko, L.V. (2016). Napriamy reformuvannia derzhavnoi polityky v zabezpechenni tsyrkuliarnoi ekonomiky v konteksti mizhnarodnoi spivpratsi [Directions of reforming of the state policy in provision of a circular economy in the context of international cooperation]. Investytsii: praktyka ta dosvid – Investments: Practice and Experience. Vol. 23, 100-110 [in Ukrainian].
- Sergienko-Berdiukova, L.V. (2015). Peredumovy formuvannia ta vprovadzhennia kontseptsii tsyrkuliarnoi ekonomiky [Background of circular economy concept formation and implementation]. Problemy teorii ta metodolohii bukhhalterskoho obliku, kontroliu i analizu – Problems of theory and methodology of accounting, control and analysis. Vol. 3 (33), 327-350 [in Ukrainian].
- Sotnyk, I.M. (2012). Tendentsii i problemy upravlinnia dematerializatsiieiu vyrobnytstva i spozhyvannia [Trends and problems in management of production and consumption dematerialization]. Aktualni problemy ekonomiky – Actual Problems of Economics, 8, 62–67 [in Ukrainian].
- Khvesyk, M., Bystryakov, I., Klynoviy, D., & Lyzun, S. (2014). Zmistovni oznaky kompleksnoi ekonomichnoi otsinky pryrodnoho bahatstva Ukrainy [Substantive features of complex economic assessment of ukrainian natural wealth]. Economist, 12, 4-9 [in Ukrainian].
- UNO Ukraine. (2016). Sustainable development objectives for 2016-2030 years. un.org.ua. Retrieved from: http://www.un.org.ua/ua/tsili-rozvytku-tysiacholittia/tsili-staloho-rozvytku.
- Allen, С. (2012). A guidebook to the Green Economy. Issue 3: exploring green economy policies and international experience with national strategies. UNDESA, Division for Sustainable Development. Retrieved from: https://sustainabledevelopment.un.org/content/documents/738GE%20Publication.pdf.
- Andersen, M. S. (2007). An introductory note on the environmental economics of the circular economy. Sustainability Science, 2(1), 133–140, DOI: https://doi.org/10.1007/s11625-006-0013-6.
- Ayres, R. U. (2008). Sustainability economics: Where do we stand? Ecological Economics, 67 (2), 281–310, DOI: https://doi.org/10.1016/j.ecolecon.2007.12.009.
- CCICED. (2003). Strategy and mechanism study for promotion of circular economy and cleaner production in China. Task Force on Circular Economy and Cleaner Production. sfu.ca. Retrieved from: https://www.sfu.ca/china-council/council-documents/council-documents.html.
- Chertow, M., & Ehrenfeld, J. (2001) Industrial symbiosis: The legacy of Kalundborg. In: R. Ayres and L. Ayres (eds.) Handbook of Industrial Ecology (pp. 334–350). Cheltenham, UK: Edward Elgar.
- Circular Economy Promotion Law of the People’s Republic of China (2008). Passed in the 4th meeting of the Standing Committee of the 11th National People’s Congress on Aug. 29, 2008. Retrieved from: http://www.fdi.gov.cn/1800000121_39_597_0_7.html.
- Closing the loop – An EU action plan for the Circular Economy. (2015). Communication from the commission to the european parliament, the council, the european economic and social committee and the committee of the regions, 2.12.2015, Brussels, COM (2015) 614 final. Retrieved from: http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1453384154337&uri=CELEX:52015DC0614.
- Costanza, R., de Groot, R., Sutton, P., van der Ploeg, S., Anderson, S. J., Kubiszewski, I., & et al (2014). Changes in the global value of ecosystem services. Global Environmental Change, 26 (1), 152–158, DOI: https://doi.org/10.1016/j.gloenvcha.2014.04.002.
- Fischer-Kowalski, M., Krausmann, F., Giljum, S., Lutter, S., Mayer, A., Bringezu, S., … & et al (2011). Methodology and indicators of economy-wide material flow accounting: State of the art and reliability across sources. Journal of Industrial Ecology, 15 (6), 855–876, DOI: https://doi.org/10.1111/j.1530-9290.2011.00366.x.
- Ghisellini, P., Cialani, C., & Ulgiati, S. (2016). A review on circular economy: The expected transition to a balanced interplay of environmental and economic systems. Journal of Cleaner Production, 114, 11–32, DOI: https://doi.org/10.1016/j.jclepro.2015.09.007.
- Gregson, N., Crang, M., Fuller, S., & Holmes, H. (2015). Interrogating the circular economy: the moral economy of resource recovery in the EU. Economy and Society, 44 (2), 218–243, DOI: https://doi.org/10.1080/03085147.2015.1013353.
- 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 (5), 765–777, DOI: https://doi.org/10.1111/jiec.12244.
- Kalmykova, Y., & Rosado, L. (2015). Urban Metabolism as Framework for Circular Economy Design for Cities. Proceedings of the World Resources Forum 2015, October. Retrieved from: http://publications.lib.chalmers.se/publication/232085-urban-metabolism-as-framework-for-circular-economy-design-for-cities
- Law of the People’s Republic of China On Evaluation of Environmental Effects. (2002). Adopted at the 30th Meeting of the Standing Committee of the Ninth National People’s Congress on October 28, 2002 and promulgated by Order No. 77 of the President of the People’s Republic of China on October 28, 2002. Retrieved from: http://www.china-eia.com/en/policiesregulations/lawsregulations/4659.htm.
- Law of the People’s Republic of China On Promotion of Cleaner Production. (2002). Adopted at the 28th Meeting of the Standing Committee of the Ninth National People’s Congress on June 29, 2002 and promulgated by Order No. 72 of the President of the People’s Republic of China on June 29, 2002. Retrieved from: https://www.global-regulation.com/translation/china/158897/clean-production-promotion-law-of-peoples-republic-of-china.html.
- Lehmann, S. (2011). Optimizing urban material flows and waste streams in urban development through principles of zero waste and sustainable consumption. Sustainability, 3 (1), 155–183, DOI: https://doi.org/10.3390/su3010155. [in English].
- Mishenin, Ye.V., & Mishenina, N. V. (2014). Development of cluster structures in the field of waste management. Marketing and Management of Innovations, 4, 163-172.
- Moriguchi, Y. (2007). Material flow indicators to measure progress toward a sound material-cycle society. Journal of Material Cycles and Waste Management, 9 (2), 112–120, DOI: https://doi.org/10.1007/s10163-007-0182-0.
- Murray, A., Skene, K. & Haynes, K. (2015). The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context. Journal of Business Ethics. DOI: doi:10.1007/s10551-015-2693-2.
- Preston, F. (2012). A Global Redesign? Shaping the Circular Economy. Energy, Environment and Resource Governance. DOI: https://doi.org/10.1080/0034676042000253936.
- Ravetz, J. (2003). Regional industrial ecology and resource productivity – new approaches to analysis and communication. Paper to ASEAT Conference & Workshop “industrial Ecology & Spaces of Innovation,” (April, 2003). Retrieved from: https://www.academia.edu/4186753/Regional_industrial_ecology_and_resource_productivity_-_new_approaches_to_analysis_and_communication.
- Roos, G. (2014). Business Model Innovation to Create and Capture Resource Value in Future Circular Material Chains. Resources, 3, 248–274. DOI: https://doi.org/10.3390/resources3010248.
- Sauvé, S., Bernard, S., & Sloan, P. (2016). Environmental sciences, sustainable development and circular economy: Alternative concepts for trans-disciplinary research. Environmental Development, 17, 48–56. DOI: https://doi.org/10.1016/j.envdev.2015.09.002.
- Telizhenko, O., Shevchenko, T., & Mishenina, G. (2016). Sustainable management of the municipal solid waste resource potential in the context of product lifecycle continuity. Journal of Environmental Management and Tourism, Vol. VII, Issue 4(16), 664-671.
- The Ellen MacArthur Foundation. (2012). Towards a Circular Economy – Economic and Business Rationale for an Accelerated Transition. Greener Management International, 97. https://doi.org/2012-04-03.
- Timmer, M. P., Los, B., Stehrer, R., & de Vries, G. J. (2016). An anatomy of the global trade slowdown based on the WIOD 2016 release. Retrieved from: http://wiiw.ac.at/an-anatomy-of-the-global-trade-slowdown-based-on-the-wiod-2016-release-n-176.html.
- van Der Marel, E. (2015). Positioning on the global value chain map: Where do you want to be? Journal of World Trade, 49(6), 915–949. Retrieved from: http://ecipe.org/publications/gvc-map/.
- WTO. (2016). World Trade statistical Review. Retrieved from: https://www.wto.org/english/res_e/statis_e/wts2016_e/wts16_toc_e.htm.
- Zhu, Tan. (2008). Circular Economy and Renewable Resource Industry in China. CESC contribution for the 4th EU-China Round Table On Recycling Industries. Paris. Retrieved from: http://www.eesc.europa.eu/.