Subject. The article considers the concept of circular economy, which has originated relatively recently in the academic literature, and is now increasingly recognized in many countries at the national level. In the European Union, the transition to circular economy is viewed as an opportunity to improve competitiveness of the European Union, protect businesses from resource shortages and fluctuating prices for raw materials and supplies, and a way to increase employment and innovation. Objectives. The aim of the study is to analyze the incentives developed by the European Commission for moving to circular economy, and to assess their effectiveness on the basis of statistical analysis. Methods. I employ general scientific methods of research. Results. The analysis of the EU Action Plan for the Circular Economy enabled to conclude that the results of the recent research in circular economy barriers, eco-innovation, technology and infrastructure were successfully integrated into the framework of this document. Understanding the root causes holding back the circular economy development and the balanced combination of economic and administrative incentives strengthened the Action Plan, and it contributed to the circular economy development in the EU. Conclusions. The measures to stimulate the development of the circular economy proposed in the European Action Plan can be viewed as a prototype for designing similar strategies in other countries, including Russia. Meanwhile, a more detailed analysis of barriers to the circular economy at the level of individual countries and regions is needed.
Keywords: circular economy, government incentive, regulatory environment, business model, eco-innovation
References:
Saavedra Y.M.B., Iritani D.R., Pavan A.L.R., Ometto A.R. Theoretical Contribution of Industrial Ecology to Circular Economy. Journal of Cleaner Production, 2018, vol. 170, pp. 1514–1522.
Schroeder P., Anggraeni K., Weber U. The Relevance of Circular Economy Practices to the Sustainable Development Goals. Journal of Industrial Ecology, 2019, vol. 23, iss. 1, pp. 77–95. URL: Link
Murray A., Skene K., Haynes K. The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context. Journal of Business Ethics, 2017, vol. 140, iss. 3, pp. 369–380. URL: Link
McDowall W., Geng Y., Huang B. et al. Circular Economy Policies in China and Europe. Journal of Industrial Ecology, 2017, vol. 21, iss. 3, pp. 651–661. URL: Link
Whicher A., Harris C., Beverley K., Swiatek P. Design for Circular Economy: Developing an Action Plan for Scotland. Journal of Cleaner Production, 2018. vol. 172, pp. 3237–3248. URL: Link
Whalen K.A. Three Circular Business Models That Extend Product Value and Their Contribution to Resource Efficiency. Journal of Cleaner Production, 2019, vol. 226, pp. 1128–1137. URL: Link
Buren N., Demmers M., Heijden R., Witlox F. Towards a Circular Economy: The Role of Dutch Logistics Industries and Governments. Sustainability, 2016, vol. 8, iss. 7. URL: Link
Sauvé S., Bernard S., Sloan P. Environmental Sciences, Sustainable Development and Circular Economy: Alternative Concepts for Trans-Disciplinary Research. Environmental Development, 2016, vol. 17, pp. 48–56. URL: Link
Nelles M., Grünes J., Morscheck G. Waste Management in Germany – Development to a Sustainable Circular Economy? Procedia Environmental Sciences, 2016, vol. 35, pp. 6–14. URL: Link
Kirchherr J., Piscicelli L., Bour R. et al. Barriers to the Circular Economy: Evidence from the European Union (EU). Ecological Economics, 2018, vol. 150, pp. 264–272. URL: Link
Keskisaari A., Kärki T. The Use of Waste Materials in Wood-Plastic Composites and Their Impact on the Profitability of the Product. Resources, Conservation and Recycling, 2018, vol. 134, pp. 257–261. URL: Link
Domenech T., Bahn-Walkowiak B. Transition Towards a Resource Efficient Circular Economy in Europe: Policy Lessons from the EU and the Member States. Ecological Economics, 2019, vol. 155, pp. 7–19. URL: Link
Gåvertsson I., Milios L., Dalhammar C. Quality Labelling for Re-used ICT Equipment to Support Consumer Choice in the Circular Economy. Journal of Consumer Policy, 2018. URL: Link
Luttenberger L.R. Waste Management Challenges in Transition to Circular Economy – Case of Croatia. Journal of Cleaner Production, 2020, vol. 256. URL: Link
Schmidt Rivera X.C., Leadley C., Potter L., Azapagic A. Aiding the Design of Innovative and Sustainable Food Packaging: Integrating Techno-Environmental and Circular Economy Criteria. Energy Procedia, 2019, vol. 161, pp. 190–197. URL: Link
Principato L., Ruini L., Guidi M., Secondi L. Adopting the Circular Economy Approach on Food Loss and Waste: The Case of Italian Pasta Production. Resources, Conservation and Recycling, 2019, vol. 144, pp. 82–89. URL: Link
Wang P., Kara S. Material Criticality and Circular Economy: Necessity of Manufacturing Oriented Strategies. Procedia CIRP, 2019, vol. 80, pp. 667–672. URL: Link
López Ruiz L.A., Ramón X.R., Domingo S.G. The Circular Economy in the Construction and Demolition Waste Sector – A Review and an Integrative Model Approach. Journal of Cleaner Production, 2020, vol. 248. URL: Link
Sherwood J. The Significance of Biomass in a Circular Economy. Bioresource Technology, 2020, vol. 300. URL: Link
Kristensen H.S., Mosgaard M.A. A Review of Micro Level Indicators for a Circular Economy – Moving Away from the Three Dimensions of Sustainability? Journal of Cleaner Production, 2020, vol. 243. URL: Link
