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The Ukrainian Economy Transformation into the Circular Based on Fuzzy-Logic Cluster Analysis

Author

Listed:
  • Myroslava Bublyk

    (Management and International Business Department, Lviv Polytechnic National University, S. Bandera Street 12, 79013 Lviv, Ukraine)

  • Agnieszka Kowalska-Styczeń

    (Faculty of Organization and Management, Silesian University of Technology, 26 Roosevelta Street, 41-800 Zabrze, Poland)

  • Vasyl Lytvyn

    (Information Systems and Networks Department, Lviv Polytechnic National University, S. Bandera Street 12, 79013 Lviv, Ukraine)

  • Victoria Vysotska

    (Information Systems and Networks Department, Lviv Polytechnic National University, S. Bandera Street 12, 79013 Lviv, Ukraine)

Abstract

In the era of limited resources and progressive environmental degradation, the circular economy is a practical application of sustainable development. It is an alternative, but also competitive way to achieve economic growth in accordance with the principles of sustainable development. This issue was considered in this paper in the context of the Ukrainian economy. The Ukrainian economy’s transformation into a circular one needs to find ways to choose practical tools for such a transition, considering the destructive impact of economic activities on the environment, population, and economy. The goal was to develop a method of choosing tools for the circular transformations of economic activities for each cluster and to reduce man-made damage to the environment. Cluster analysis, fuzzy C-means method, and grouping of economic activities were used. Two analyzed sectors turned out to be the most interesting: mining and quarrying, and electricity, gas, steam, and air conditioning supply, which were finally assigned to the cluster with a high level of destructive impact, defined as ‘environmentally unfriendly’. The proposed method allows the choice of circular transformation tools for economic activities depending on the destructive impact of these economic activities within each cluster.

Suggested Citation

  • Myroslava Bublyk & Agnieszka Kowalska-Styczeń & Vasyl Lytvyn & Victoria Vysotska, 2021. "The Ukrainian Economy Transformation into the Circular Based on Fuzzy-Logic Cluster Analysis," Energies, MDPI, vol. 14(18), pages 1-17, September.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:18:p:5951-:d:638926
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    References listed on IDEAS

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    5. Izabela Jonek-Kowalska & Sara Rupacz, 2023. "The Innovative Nature of Selected Polish Companies in the Energy Sector Compared to the Use of Renewable Energy Sources from a Financial and an Investor’s Perspective," Resources, MDPI, vol. 12(12), pages 1-19, December.

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