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The concept for production and consumption waste management for purposes of a circular economy

Vol. 15, Iss. 11, NOVEMBER 2019

Received: 28 August 2019

Received in revised form: 16 September 2019

Accepted: 30 September 2019

Available online: 15 November 2019


JEL Classification: O13, O44, Q53, Q57

Pages: 1984–2000

Kolesnik G.V. Plekhanov Russian University of Economics (PRUE), Moscow, Russian Federation

Merkulina I.A. Financial University under Government of Russian Federation, Moscow, Russian Federation

Subject As people expand their economic activity, biosphere mechanisms face a growing burden of waste recycling. The increasing volume and variety of production and consumption waste destabilize the environmental balance and lowers the standards of living, thus slowing down the economic growth. The above adverse trends can be overwhelmed provided the waste management mechanism is drastically overhauled by absorbing some elements of a circular economy.
Objectives The article analyzes what transformation processes occur in business models, consumption models and the institutional environment so as to implement approaches of a circular economy. We formulate a conceptual approach to upgrading the system for production and consumption waste management in line with the above trends.
Methods The study involves the methods of logic and systems analysis.
Results The implementation of circular economy strategies were found to require substantial setup investment in the development of institutes and infrastructure and increase current operating expenses for all parties to production and consumption processes. Some types of business managed to successfully progress, thereby confirming the general rule implying that such activities will be economically unattractive and unprofitable, unless there is no appropriate regulatory framework.
Conclusions and Relevance The regulatory and methodological framework should be in place to promote mechanisms of a circular economy, since it would add an economic context in economic relationships and motivate businesses to use resource recycling models. If business actors internationalize adverse effects as environmental payments and duties for waste placement, they will create business opportunities for enforcing waste recycling strategies.

Keywords: ecology, waste, circular economy, recycling


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