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Implementation of a Circular Economy in Ukraine: The Context of European Integration

Author

Listed:
  • Nestor Shpak

    (Management and International Business Department, Institute of Economics and Management, Lviv Polytechnic National University, 79013 Lviv, Ukraine)

  • Oleh Kuzmin

    (Management and International Business Department, Institute of Economics and Management, Lviv Polytechnic National University, 79013 Lviv, Ukraine)

  • Olga Melnyk

    (Foreign Trade and Customs Department, Institute of Economics and Management, Lviv Polytechnic National University, 79013 Lviv, Ukraine)

  • Mariana Ruda

    (Foreign Trade and Customs Department, Institute of Economics and Management, Lviv Polytechnic National University, 79013 Lviv, Ukraine)

  • Włodzimierz Sroka

    (Management Department, WSB University, 41-300 Dąbrowa Górnicza, Poland)

Abstract

The current model of resource management mainly contributes to mass short-term consumption, which creates an unstable and extremely critical situation on the planet. Going beyond the traditional industrial model of Take-Make-Waste, the circular economy aims to reduce waste (and therefore minimize costs) and to redefine sustainable development. This entails a gradual separation of economic activity from the consumption of scarce resources and the removal of waste from the system. In order to foreground the principles of a circular economy in Ukraine, this study analyzes its benefits based on the relevant experience of the EU. The paper also presents the results of research and content analysis on the situation of waste management in Ukraine and compares the trends using key indicators. The core of the paper is developing a conceptual model of making and coordinating management decisions on the implementation of business projects in the context of a circular economy in Ukraine. A multifactor model (the Farrar–Glauber method was further developed) has been built by identification of the main factors, i.e., the volume of generated waste from economic activity per unit of GDP at constant prices, emissions of pollutants, and capital investments for the protection of the environment. Factor coefficients indicate how many units will change the resultant trait Y, measured in thousand tonnes, if one of them changes by 1 (each in units of measure). It means that if the volume of waste generated from economic activity per unit of GDP at constant 2011 purchasing power parity (PPP) prices decreases by 1 kg/$1000, waste management of I–IV classes will be reduced by 952,737 thousand tonnes. The approbated model can be used to analyze the situation with recycling in the EU countries, considering the amount of capital investment in environmental protection.

Suggested Citation

  • Nestor Shpak & Oleh Kuzmin & Olga Melnyk & Mariana Ruda & Włodzimierz Sroka, 2020. "Implementation of a Circular Economy in Ukraine: The Context of European Integration," Resources, MDPI, vol. 9(8), pages 1-15, August.
    • Handle: RePEc:gam:jresou:v:9:y:2020:i:8:p:96-:d:399433
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    Cited by:

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    2. Vyacheslav Shebanin & Iurii Kormyshkin & Georgiy Reshetilov & Iryna Allakhverdiyeva & Valentyna Umanska, 2022. "Sustainable development of the socio-economic security system of the region based on closed cycle technologies," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(2), pages 271-288.
    3. Gratiela Georgiana Noja & Mirela Cristea & Eleftherios Thalassinos & Marta Kadłubek, 2021. "Interlinkages between Government Resources Management, Environmental Support, and Good Public Governance. Advanced Insights from the European Union," Resources, MDPI, vol. 10(5), pages 1-23, April.
    4. Nestor Shpak & Ihor Kulyniak & Maryana Gvozd & Jolita Vveinhardt & Natalia Horbal, 2021. "Formulation of Development Strategies for Regional Agricultural Resource Potential: The Ukrainian Case," Resources, MDPI, vol. 10(6), pages 1-30, June.
    5. Paweł Dziekański & Adam Wyszkowski & Piotr Prus & Andrzej Pawlik & Mansoor Maitah & Magdalena Wrońska, 2022. "Zero Waste as a Determinant of Shaping Green Economy Processes on the Example of Communes of Eastern Poland in 2010–2020," Energies, MDPI, vol. 16(1), pages 1-24, December.

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