Modern Innovations in the Context of the Transition to Circular Economy
Keywords:innovations, linear economy, circular economy.
Introduction. The major threats to human existence are nuclear war, ecological collapse, and technological breakthrough. They are all closely linked to both security policy and economic development.
Problem Statement. The world economic system annually consumes resources that need a year and a half to recover, thus having an irreversible impact on the planet ecosystem.
Purpose. The purpose of this research is to explain the main trends associated with the transition to circular economy.
Materials and Methods. Analysis and synthesis, comparative analysis and systemic approach have been used in this research. Scholarly research reports of international organizations, private and public corporations, publications on this issue have been used as references.
Results. The growth of world GDP has provided a significant progress and allowed, to some extent, freeing billions people from impoverishment. At the same time, economic growth causes a steady increase in demand for natural resources. This, in turn, leads to the loss of biodiversity and to the problems with water scarcity, which are caused by the methods used in the extraction and processing of natural resources. To develop a climate-neutral circular economy, appropriate policy initiatives have been launched and programmatic actions have been developed. Transformation has been already underway, but conceptual decisions need to be developed and adopted as soon as possible.
Conclusions. Politics and economics shall aim at the activities that contribute to making more environment friendly society economically viable. The most obvious step should be to ban subsidizing any activities that are harmful to the environment. In Ukraine, there are ample opportunities to transform the dominant model of linear economy into environment friendly and economically efficient circular model. The development of circular economy in Ukraine may give not only a favorable environment effect, but also the economic effect of increasing energy and resource efficiency, as well as the social effect of creating additional jobs and profiting corporations
in new industries and activities.
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