+7 495 989 9610, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»






Financial Analytics: Science and Experience

Factors of the circular economy development

Vol. 13, Iss. 4, DECEMBER 2020

Received: 27 July 2020

Received in revised form: 13 August 2020

Accepted: 29 August 2020

Available online: 13 November 2020


JEL Classification: C67, Q58

Pages: 430–447


Ratner S.V. V.A. Trapeznikov Institute of Control Sciences, Russian Academy of Sciences, Moscow, Russian Federation


Subject. Today the circular economy is viewed as a new model of economic growth that allows overcoming resource constraints. Despite the general understanding that environmental problems are the main incentive for the transition to circular models of production and consumption, the underlying factors in the development of this economic model have not been fully studied in modern literature. Are circular production models available only to technologically highly developed rich countries, or, conversely, poverty and a total lack of resources are the best incentive for the development of a circular economy?
Objectives. I study the influence of such factors as the general economic and innovative development of the country, as well as the State's innovating activity to form and develop circular models of economic growth.
Methods. The research was carried out with methods of econometric modeling. Eurostat data were used as an underlying source of information.
Results. The study showed that the high level of the national economic development positively influences the resource efficiency of an economy, but more advanced countries produce more waste in the consumption sector. Production and consumption waste recycling demonstrates better trends in less economically developed countries. Countries with substantial innovation expenditures tend to have more robust municipal and industrial waste recycling technologies, as well as a more effective use of secondary materials. The development of an e-waste recycling system is essentially dependent on government incentives for innovation in this area.
Conclusions. The findings can be used for outlining national federal and regional programs for the development of production and consumption waste recycling mechanisms in Russia. Social entrepreneurship and business initiative may appear one of the priority mechanisms spurring the circular economy in Russia through traditional patterns of resource-saving consumer behavior.

Keywords: circular economy, econometric modeling, economic development, innovative development, government spending


  1. 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, pp. 369–380. URL: Link
  2. Ratner S.V. [Circular economy: Theoretical foundations and practical applications in the field of regional economy and management]. Innovatsii = Innovations, 2018, no. 9, pp. 2–10. URL: Link (In Russ.)
  3. Wang P., Kara S. Material Criticality and Circular Economy: Necessity of Manufacturing Oriented Strategies. Procedia CIRP, 2019, vol. 80, pp. 667–672. URL: Link
  4. Korhonen J., Honkasalo A., Seppälä J. Circular Economy: The Concept and Its Limitations. Ecological Economics, 2018, vol. 143, pp. 37–46. URL: Link
  5. Gomonov K.G., Sipakova P.O., Chapurnaya A.P. [Introduction of microgeneration and energy-saving technologies within the concept of green economy: foreign experience and Russia]. Vestnik Rossiiskogo universiteta druzhby narodov. Ser.: Ekonomika = RUDN Journal of Economics, 2019, vol. 27, no. 3, pp. 442–454. URL: Link (In Russ.)
  6. Iosifov V.V. [A scenario analysis of the co-directional development of innovative technology in automobile transport and power generation]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2016, no. 11, pp. 167–178. URL: Link (In Russ.)
  7. Chuvyrova A.E., Iosifov V.V. [Integration of product life cycle assessment in the methodology of managing the development of the regional energy system]. Drukerovskij Vestnik, 2019, no. 3, pp. 292–303. (In Russ.) URL: Link
  8. Matyushok V.M., Serdzhio B., Balashova S.A., Gomonov K.G. [Influence of Smart Grid and Renewable Energy Sources on Energy Efficiency: Foreign Experience]. Vestnik Rossiiskogo universiteta druzhby narodov. Ser.: Ekonomika = RUDN Journal of Economics, 2017, vol. 25, no. 4, pp. 583–598. URL: Link (In Russ.)
  9. Jesus A., Mendonça S. Lost in Transition? Drivers and Barriers in the Eco-Innovation Road to the Circular Economy. Ecological Economics, 2018, vol. 145, pp. 75–89. URL: Link
  10. 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
  11. Petit-Boix A., Leipold S. Circular Economy in Cities: Reviewing How Environmental Research Aligns with Local Practices. Journal of Cleaner Production, 2018, vol. 195, pp. 1270–1281. URL: Link
  12. Val'ko D.V. [Circular economy: A theoretical model and implementation effects]. Natsional'nye interesy: prioritety i bezopasnost' = National Interests: Priorities and Security, 2018, vol. 14, iss. 8, pp. 1415–1429. (In Russ.) URL: Link
  13. Gur'eva M.A. [Circular economy as an innovative development model of socio-economic space]. Voprosy innovatsionnoi ekonomiki = Russian Journal of Innovation Economics, 2019, vol. 9, no. 4, pp. 1295–1316. URL: Link (In Russ.)
  14. Val'ko D.V. [Sustainable development and circular economy: Cross-country measurement]. Upravlenie v sovremennykh sistemakh = Management in Modern Systems, 2020, no. 1, pp. 3–12. URL: Link (In Russ.)
  15. 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
  16. 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
  17. Baldwin R. Does Sustainability Require Growth? In: Goldin I., Winters L.A. (Eds) The Economics of Sustainable Development. Cambridge, UK, Cambridge University Press, 1995, pp. 19–47.
  18. Beckerman W. Economic Growth and the Environment: Whose Growth? Whose Environment? World Development, 1992, vol. 20, iss. 4, pp. 481–496. URL: Link90038-W
  19. Magnani E. The Environmental Kuznets Curve, Environmental Protection Policy and Income Distribution. Ecological Economics, 2000, vol. 32, iss. 3, pp. 431–443. URL: Link00115-9
  20. Dosi G., Nelson R.R. Technological Paradigms and Technological Trajectories. Research Policy, 1982, vol. 11, iss. 3, pp. 147–162. URL: Link
  21. Anderson P., Tushman M.L. Technological Discontinuities and Dominant Designs: A Cyclical Model of Technological Change. Administrative Science Quarterly, 1990, vol. 35, iss. 4, pp. 604–633. URL: Link

View all articles of issue


ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

Journal current issue

Vol. 14, Iss. 1
March 2021