CIRCULAR ECONOMY: ADVANTAGES AND DISADVANTAGES

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Journal LNEU: Economics of AIC 2022 №29: 10-16

CIRCULAR ECONOMY: ADVANTAGES AND DISADVANTAGES

H. Cherevko, Doctor of Economic Sciences
ORCID ID: 0000-0002-0072-5816
Lviv National Environmental University

https://doi.org/10.31734/economics2022.29.010

Annotation

The purpose of this article is to present the results of the study of the main advantages and disadvantages of the circular economy as an economically profitable and environmentally safe model of further development, which can be useful when considering the possibilities of its implementation in the current practice. The general methodological approach to conducting research on the topic of this article is based on application of the principles of the dialectical method of scientific research in combination with analysis and synthesis, induction, scientific abstraction, the unity of the historical and logical in economic research. In some cases, monographic, descriptive, generalization, comparison, scientific prediction and forecasting methods are used.

The studies have shown that the main advantages of a circular economy as compared to a linear economy are the following: economic growth takes place on the basis of a balanced development while preserving the quality and quantity of natural resources; the intensity of harmful effects on the environment and the cost of manufactured products decrease; the need for primary raw materials decreases, reducing its deficit; the inflow of investments is increasing and their structure is changing in the direction of ensuring the realization of opportunities for production greening; new technologies and, in general, the achievement of scientific and technical progress in the relevant direction are being introduced; the level of population well-being increases due to the improvement of the population health and living standards in general and due to the increase in the number of job places; the dependence of the world economy on natural minerals decreases; the population health improves; the level of food security increases in terms of food quality; there is a positive impact on climate change; the number of harmful emissions and volumes of waste decreases; the effect of natural resources regeneration is achieved; the saved use of resources is achieved, including also by reducing the transportation of raw materials; the need for waste disposal decreases; the level of producers’ and consumers’ social responsibility increases.

The main disadvantage of the circular economy is the relatively high cost of immediate measures and actions within the framework of this model, but it is successfully overcome due to the relevant technologies and legal framework.

Key words

circular economy, linear economy, advantages, disadvantages

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