On the application of the concept of circular economy to ensure balanced sustainable development of the national logistics system in Ukraine

Abstract

The evolution and preconditions of formation, challenges and factors for circular economy development are investigated in the article. Were analyzed and generalized the existing scientific approaches to the definition of “circular economy”, which are conditionally systematized into 9 groups: section of economy, paradigm, strategy, model, system, ecological opportunity, recycling technology, tool of “green” economy, type of economic activity. It is proposed to consider the term “circular economy” from such aspects as: the modern paradigm of logistics systems’ development; sustainable development strategy; sustainable business model of the national economy; economic model based on industrial waste recycling technology; logistics flow management tool, which is based on an integrated approach (integration of system, process, situational, functional); activities aimed at implementing a closed cycle of logistics flows to increase the level of the national economy environmental security.

Were was accomplished a statistical analysis of the national logistics system development in consideration of the environmental component. It was established that the “green” transformation of Ukrainian logistics system in a circular economy is not effective enough. This is due to the limited amount of funding for environmental protection and insufficient development of the industrial waste recycling system. These issues require the development of a set of appropriate institutional measures and the adoption of radical logistics decisions based on European best practices.

Keywords

national economy, logistics system, circular economy, sustainable development, strategy, paradigm, waste recycling, statistical analysis, conceptual approaches, systematization, effect

Анотація

У статті досліджено еволюцію та передумови становлення, виклики та чинники розвитку циркулярної економіки. Проаналізовано й узагальнено існуючі наукові підходи до визначення поняття «циркулярна економіка», які умовно систематизовано за 9 групами: розділ економіки, парадигма, стратегія, модель, система, екологічна можливість, технологія рециклінгу, інструмент «зеленої» економіки, вид господарської діяльності.
Запропоновано термін «циркулярна економіка» розглядати з таких позицій, як: сучасну парадигму розвитку логістичних систем; стратегію збалансованого сталого розвитку; стійку бізнес-модель національної економіки; економічну модель, яку засновано на технології рециклінгу промислових відходів; інструмент управління логістичними потоками, який грунтується на комплексному (інтеграція системного, процесного, ситуаційного, функціонального) підході; діяльність, яку спрямовано на реалізацію замкнутого циклу логістичних потоків задля підвищення рівня екологічної безпеки національної економіки.

Виконано статистичний аналіз розвитку національної логістичної системи з урахуванням екологічної складової. Встановлено, що «зелена» трансформація логістичної системи України в умовах циркулярної економіки відбувається недостатньо ефективно. Це пов’язано з обмеженим обсягом фінансування сфери охорони навколишнього природного середовища та недостатнім розвитком системи рециклінгу промислових відходів. Ці питання вимагають розроблення комплексу відповідних інституційних заходів і прийняття кардинальних логістичних рішень з урахуванням передового європейського досвіду.

Ключові слова

національна економіка, логістична система, циркулярна економіка, сталий розвиток, стратегія, парадигма, рециклінг відходів, статистичний аналіз, концептуальні підходи, систематизація, ефект

Back to Table of Contents No 7(8) (2021)

Hryhorak M.Yu.  Doctor of Economics, Associate Professor, Head of Logistics Department National Aviation University (Ukraine)

• ORCID – 0000-0002-5023-8602
• Researcher ID –  AAK-2963-2021
• Scopus author id: – 57208222758

Dzwigol Henryk Habilitated Doctor in Economics, Professor, Silesian University of Technology (Gliwice, Poland)

• ORCID – 0000-0002-2005-0078
• Researcher ID – N-5498-2019
• Scopus author id: –

Kwilinski Aleksy Ph.D., Doctor of Economics, Professor, The London Academy of Science and Business (London, United Kingdom)

• ORCID –  0000-0001-6318-4001
• Researcher ID –  B-7526-2017
• Scopus author id: – 57204068618

Trushkina N.V. PhD (Economics), Associate Professor, Senior Research Fellow, Regulatory Policy and Entrepreneurship Development Institute of Industrial Economics of the National Academy of Sciences of Ukraine (Ukraine)

• ORCID –  0000-0002-6741-7738
• Researcher ID –  C-1441-2018
• Scopus author id: –

Ovdiienko O.V. PhD Student, Assistant of Logistics Department of National Aviation University (Ukraine)

• ORCID –  0000-0003-2770-4895
• Researcher ID –
• Scopus author id: –

1. 1. Kharazishvili, Y., Kwilinski, A., Grishnova, O., Dzwigol, H. (2020). Social Safety of Society for Developing Countries to Meet Sustainable Development Standards: Indicators, Level, Strategic Benchmarks (with Calculations Based on the Case Study of Ukraine). Sustainability, 12(21), https://doi.org/10.3390/su12218953.
   2. Abazov, R. (2021). Education for sustainable development and ICT: The case of MDP program at al-Farabi KazNU. Herald of Journalism, 58(4), 34-43. https://doi.org/10.26577/HJ.2020.v58.i4.04.
   3. Boichuk, N., Kauf, S. (2019). Sustainable logistics: a framework for green city logistics – examples of Polish cities. Conference Proceedings of the 9th Carpathian Logistics Congress ‐ CLC 2019, December 2‐4, 2019, Zakopane, Poland, 339-346.
   4. Pearce,, Markandya, A., Barbier, E. (1989). Blueprint for a Green economy. London: Earthscan Publications Ltd.
   5. UNEP (2011). Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication – A Synthesis for Policy Makers. https://sustainabledevelopment.un.org/content/documents/126GER_synthesis_en.pdf.
   6. Haney, A., Krestyaninova, O., Love, Ch. (2019). The Circular Economy Boundaries and Bridges. Oxford: Said Business School, University of Oxford. https://www.sbs.ox.ac.uk/sites/default/files/2019-09/the-circular-economy.pdf.
   7. Reike,, Vermeulen, W.J.V., Witjes, S. (2018). The circular economy: New or Refurbished as CE 3.0? – Exploring Controversies in the Conceptualization of the Circular Economy through a Focus on History and Resource Value Retention Options’. Resources, Conservation and Recycling, 135, 246-264. https://doi.org/10.1016/j.resconrec.2017.08.027.
   8. Boulding, K. E (1966). Economic Analysis; Volume I Microeconomics (Hardcover). 4th ed. New York: Harper & Row.
   9. Boulding, K. (1966a). The Economics of the Coming Spaceship Earth. In: Jarrett, H. (). Environmental Quality in a Growing Economy, Resources for the Future. Johns Hopkins University Press, Baltimore, 3-14.
   10. Su, B., Heshmati, A., Geng, Y., Yu, X. (2013). A review of the circular economy in China: Moving from rhetoric to implementation. Clean. Prod., 42, 215-227.
   11. Kirchherr, J., et al. (2018). Barriers to the circular economy: evidence from the European Union (EU). Ecological Economics, 150, 264-272. https://doi.org/10.1016/j.ecolecon.2018.04.028.
   12. Kirchherr, J., Hekkert, M. Bour, R., Huibrechtse-Truijens, A., Kostense-Smit, E., Muller, J. (2017). Breaking the Barriers to the Circular Economy. Deloitte.
   13. Pheifer, G. (2017). Barriers and Enablers to Circular Business Models. Brielle.
   14. Ritzén, S., Sandström, G. Ö. (2017). Barriers to the Circular Economy – integration of perspectives and domains. Procedia CIRP, 64, 7-12.
   15. Batova, N., Shershunovich, E., Tochickaja, I. (2019). Circular Economy in Belarus: barriers to transition. BEROC Green Economy Policy Paper Series, PP no. 9. http://www.beroc.by/upload/iblock/41c/41c28e417ff84b7b98895d34ab 20c782.pdf (in Russian).
   16. Gureva, M .A. (2019). Teoreticheskie osnovy tsirkulyarnoy ekonomiki [The theoretical basis of circular economy]. Culture and the environment – the basics of sustainable development of Russia. Green bridge through the generations, 54-59. (in Russian).
   17. Esipova, O. V., Blazhnov, N. M., Satsyuk, I. A. (2018). Tsirkulyarnaya ekonomika [Circular economy]. Modern science: current issues, achievements and innovations, 107-110. (in Russian).
   18. Mishenin,, Koblyanskaya, I. (2017). Perspektivy i mekhanizmy razvitiya «Tsirkulyarnoy» ekonomiki v globalnoy srede [Prospects and mechanisms of development of Circular economy in a global environment]. Marketing i menedzhment innovatsiy, 2, 329-343. (in Russian).
   19. Sergienko, O., Rohn, H. (2004). Basics of the Eco-efficiency Theory. https://wupperinst.org/uploads/tx_wupperinst/Basics_EcoEfficiency_ru.pdf. (in Russian).
   20. Yuan, Z., Bi, J., Moriguichi, Y. (2006). The circular economy: A new development strategy in China. Ind. Ecol., 10, 4-8.
   21. Melnik, L., Khens, L. (2007). Sotsialno-ekonomicheskiy potentsial ustoychivogo razvitiya [Socio-economic potential of sustainable development]. ITD “Universitetskaya kniga”. (in Russian).
   22. Wen, F., Zhao, Y. L., Liang, R. Z. (2007). ‘Recycle of low chemical potential substance’. Resources, Conservation and Recycling, 2, 475-486. https://doi.org/ 10.1016/j.resconrec.2006.10.011
   23. Geng, Y., Doberstein, B. (2008). Developing the circular economy in China: Challenges and opportunities for achieving’leapfrog development. J. Sustain. Dev. World Ecol., 15, 231-239. https://doi.org/10.3843/SusDev.15.3.
   24. Zhang, H., Hara, K., Yabar, H., Yamaguchi, Y., Uwasu, M., Morioka, T. (2009). Comparative analysis of socio-economic and environmental performances for Chinese EIPs: Case studies in Baotou, Suzhou, and Shanghai. Sustainability Science, 4, 263-279. https://doi.org/10.1007/s11625-009-0078-0.
   25. Zhu, Q., Geng, Y., Sarkis, J., Lai, K. (2011). Evaluating green supply chain management among Chinese manufacturers from the ecological modernization perspective. Res. PART E-LOGISTICS Transp., 47, 808-821. https://doi.org/10.1016/j.tre.2010.09.01.
   26. Sazonova, T. (2013). Volny internatsionalizatsii i perspektivy globalizatsii [Waves of internationalisation and prospects of globalization]. Scientific works of the Free Economic Society of Russia, 176, 495-502. (in Russian).
   27. Jiao,, Boons, F. (2014). Toward a research agenda for policy intervention and facilitation to enhance industrial symbiosis based on a comprehensive literature review. Journal of Cleaner Production, 67(15), 14-25. https://doi.org/10.1016/j.jclepro.2013.12.050.
   28. Wei,, Liu, S., Yin, L., Li, W., Yu, Z. (2014). Research on Performance Evaluation System for Green Supply Chain Management Based on the Context of Recycled Economy-Taking Guangxi’s Manufacturing Industry as Example. J. Grey Syst., 26, 177-187.
   29. Haas,, Krausmann, F., Wiedenhofer, D., Heinz, M. (2015). How Circular is the Global Economy?: An Assessment of Material Flows, Waste Production, and Recycling in the European Union and the World in 2005. Journal of Industrial Ecology, 5. https://doi.org/10.1111/jiec.12244.
   30. Tukker, (2015). Product services for a resource-efficient and circular economy – a review. J. Clean. Prod., 15, 76-91. https://doi.org/10.1016/ j.jclepro.2013.11.049.
   31. Ghisellini,, Cialani, C., Ulgiati, S. (2016). A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems. J. Clean. Prod., 114, 11-32.
   32. Sauve,, Bernard, S., Sloan, P. (2016). Environmental sciences, sustainable development and circular economy: alternative concepts for trans-disciplinary research. Environ., 17, 48-56. https://doi.org/10.1016/j.env-dev.2015.09.002.
   33. Lieder,, Rashid, A. (2016). Towards circular economy implementation: A comprehensive review in context of manufacturing industry. Journal of Cleaner Production, 1, 36-51. https://doi.org/10.1016/ j.jclepro.2015.12.042.
   34. Serbulova, N., Sivolapenko, E., Panosyan, S. (2016). Aktualnost perekhoda ot lineynoy k tsirkulyarnoy modeli ekonomiki’ [The relevance of the transition from a linear to a circular economic model]. Economist of the year 2016, 60-65. (in Russian).
   35. Pilyugina, M. (2016). Tsirkulyarnaya model ekonomiki kak novyy podkhod k probleme ustoychivogo razvitiya’ [The circular economy model as a new approach to sustainable development]. Stroitelstvo – formirovanie sredy zhiznedeyatelnosti, 148-149. (in Russian).
   36. Geissdoerfer,, et al. (2017). The Circular Economy e A new sustainability paradigm? J. Clean. Prod., 143, 757-768. https://doi.org/10.1016/ j.jcle-pro.2016.12.048.
   37. Murray,, Skene, K., Haynes, K. (2017). The circular economy: an interdisciplinary exploration of the concept and application in a global context. J. Bus. Ethics., 140(3), 369-380.
   38. Aleksandrova, V. (2017). Aktualnost perekhoda k modeli tsirkulyarnoy ekonomiki v Rossii [The actuality of transition to the model of circular economy in russia]. International Journal of Humanities and Natural Sciences, 11, 106-110. (in Russian).
   39. Pakhomova, N., Rikhter, K., Vetrova, M. (2017). Perekhod k tsirkulyarnoy ekonomike i zamknutym tsepyam postavok kak faktor ustoychivogo razvitiya’ [Transition to circular economy and closed-loop supply chains as driver of sustainable development]. Vestnik Sankt-peterburgskogo universiteta ekonomika, 5. 244-268. https://doi.org/ 10.21638/11701/spbu05.2017.203 (in Russian).
   40. Mashukova, B. (2016). Osnovnye printsipy tsiklichnoy ekonomiki (ekonomika zamknutogo tsikla) [Basic principles of circular economy (circular economy)]. European science, 7(17), 14-16. (in Russian).
   41. Nechaeva, E. (2018). Rol sotsialnoy laboratorii i Quadruple Helix modeli v perekhode Samary na tsirkulyarnuyu ekonomiku [The role of social laboratory and Quadruple Helix models in the transition of Samara on the circular economy]. Vestnik sovremennyh issledovaniy,2(23), 60-62. (in Russian).
   42. Antropov, V., Bochko, V., Kniss, M. (2018). Razvitie «zelenoy» ekonomiki Rossii [The development of “green” economy in Russia]. Vestnik Uralskogo gosudarstvennogo universiteta putey soobscheniya, 3(39), 68-83. (in Russian).
   43. Korhonen,, et al. (2018). Circular economy as an essentially contested concept. Journal of Cleaner Production, 175, 544-552. https://doi.org/10.1016/ j.jclepro.2017.12.111.
   44. Gureva, A. (2019). Teoreticheskie osnovy kontsepta tsirkulyarnoy ekonomiki [The theoretical basis of the concept of circular economy]. Journal of International Economic Affairs, 9(3), 2311-2336. https://doi.org/10.18334/ eo.9.3.40990 (in Russian).
   45. Dzwigol, H., Trushkina, N., & Kwilinski, A. (2021). The Organizational and Economic Mechanism of Implementing the Concept of Green Logistics. Virtual Economics, 4(2), 74-108. https://doi.org/10.34021/ve.2021.04.02(3).
   46. Zaloznova,, Kwilinski, A., Trushkina, N. (2018). Reverse logistics in a system of the circular economy: theoretical aspect. Economic Herald of the Donbas, 4(54), 29-37.
   47. Trushkina, (2018). Green logistics as a tool to improve the quality of life in conditions of globalization. Contemporary Problems of Improve Living Standards in a Globalized World: Volume of Scientific Papers (pp. 147-152). Opole, Publishing House WSZiA.
   48. Trushkina, N. (2019). Development of the information economy under the conditions of global economic transformations: features, factors and prospects. Virtual Economics, 2(4), 7-25. https://doi.org/10.34021/ve.2019.02.04(1).
   49. Trushkina N.V. (2019). Green logistics as a concept of sustainable development of the transport and logistics system in Ukraine. Determinants of sustainable economic development: monograph (pp. 232-241) / Edited byKhrapkina, V. Ustimenko. Kyiv: Interservice (in Ukrainian).
   50. Trushkina, N. V. (2019). Green logistics as a component of corporate social responsibility of business. III International Scientific Conference The Modern Trends in the Development of Business-Social Responsibility: Conference Proceedings, June 28th, 2019, Nova School of Business and Economics, Lisbon, Portugal (pp. 112-115). Riga: Baltija Publishing (in Russian).
   51. Kashchena,, Solokha, D., Trushkina, N., Potemkin, L., Mirkurbanova, R. (2019). Use of multi-agent simulation modeling for predicting the sales of wholesale trade companies. Journal of Management Information and Decision Sciences, 22(4), 483-488.
   52. Koev,R., Tryfonova, O., Inzhyievska, L., Trushkina, N., Radieva, M. (2019). Management of Domestic Marketing of Service Enterprises. IBIMA Business Review, Article 681709. https://doi.org/ 10.5171/2019.681709.
   53. Koev,R., Tryfonova, O., Inzhyievska, L., Trushkina, N., Radieva, M. (2019). Contact personnel assessment as a prerequisite for introduction of internal marketing system. Proceedings of the 33rd International Business Information Management Association Conference, IBIMA: Education Excellence and Innovation Management through Vision 2020, pp. 6497-6510.
   54. Sandiuk,, Lushpiienko, Yu., Trushkina, N., Tkachenko, I., Kurganskaya, E. (2019). Special Procedures for Electronic Public Procurement. Journal of Legal, Ethical and Regulatory Issues, 22, Special Issue 2. Business laws and legal rights: research and practice. https://www.abacademies.org/articles/ special-procedures-for-electronic-public-procurement-1544-0044-22-SI-2-351.pdf.
   55. Kwilinski, A., Trushkina, N. (2019). Logistics cluster as an institution of regional development in the context of economic modernization. Science and practice, June 28, University of Macedonia, Midas S.A., Thessaloniki, Greece, pp. 55-59.
   56. Ivanov, S. V., Liashenko, V. I., Trushkina, N. V. (2019). Innovatsiinyi rozvytok transportno-lohistychnoi systemy v Ukraini: problemy ta shliakhy yikh vyrishennia [Innovative development of the transport and logistics system in Ukraine: problems and solutions]. In: Liashenko V. I., Prokopenko O. V., Omelyanenko V. A. (Ed.). Instytutsionalna model innovatsiinoi ekonomiky [Institutional model of innovative economy] (pp. 114-130). Kyiv: Institute of Industrial Economics of the NAS of Ukraine. (in Ukrainian).
   57. Ivanov, S., Dzwigol, H., Trushkina, N. (2019). Proposals for the Formation of a Transport and Logistics Cluster as an Institution of Regional Development (on the Example of Donetsk Economic Region). Economic Herald of the Donbas, 4(58), 51-60. https://doi.org/10.12958/1817-3772-2019-4(58)-51-60.
   58. Ivanov, S. V., Liashenko, V. I., Trushkina, N. V. (2020). Pravovi aspekty stvorennia transportno-lohistychnykh klasteriv v rehionakh Ukrainy [Legal aspects of creating transport and logistics clusters in the regions of Ukraine]. Gesellschaftsrechtliche Transformationen von wirtschaftlichen Systemen in den Zeiten der Neo-Industrialisierung (s. 661-668). Nüremberg: Verlag SWG imex GmbH (in Ukrainian).
   59. Trushkina, N., Dzwigol, H., Kwilinski, A. (2021). Cluster model of organizing logistics in the region (on the example of the economic district “Podillya”). Journal of European Economy, 20(1), 127-145. https://doi.org/ 10.35774/jee2021.01.127.
   60. Trushkina, N. (2020). International experience in implementing the mechanism of “green” financing for sustainable development of transport and logistics systems. Сompetitiveness and sustainable development: Book of abstracts of the 2nd Economic International Conference, Chisinau, Republic of Moldova, November 20th, 2020 (pp. 10). Chişinău: Tehnica-UTM.
   61. Hryhorak, M. Yu., Trushkina, N. V. (2020). Development of the logistics system of the economic region “Polissya” in the context of the green economy: ecological problems and perspectives”. Intellectualization of logistics and Supply Chain Management, 4, 27-40. https://doi.org/10.46783/smart-scm/2020-4-3.
   62. Dźwigoł, H., Kwilinski, A., & Trushkina, N. (2021). Green Logistics as a Sustainable Development Concept of Logistics Systems in a Circular Economy. In Khalid S. Soliman (Ed.), Proceedings of the 37th International Business Information Management Association (IBIMA), 1-2 April 2021 (pp. 10862-10874). Cordoba, Spain: IBIMA Publishing.
   63. State Statistics Service of Ukraine (2020). Environment of Ukraine 2019: statistical yearbook. Kyiv.
   64. State Statistics Service of Ukraine (2020). Activity of business entities 2019: statistical yearbook. Kyiv.
   65. Ellen MacArthur Foundation (2017). Achieving‚ Growth Within. A 320-Billion Circular Economy Investment Opportunity available to Europe up to 2025. Brüssel.
   66. Müller, A., Wilts, H. (2019). Bestandsaufnahme für die erfolgreiche Planung und Umsetzung einer Kreislaufwirtschaft in Belarus. Eine Analyse von Stärken und Schwächen sowie von Chancen und Risiken im Gebiet Brest. Angefertigt vom Wuppertal Institut im Auftrag der Deutschen Gesellschaft für Internationale Zusammenarbeit (GIZ). Berlin.
   67. European Commission (2018). Impacts of Circular Economy Policies on the Labour Final Report and Annexes. Luxembourg.
   68. Kojvisto, T. (2020). The Finnish Five: Circular Economy (interview with Kari Herlevi). September 25. https://www.goodnewsfinland.com/ru/feature/finskaya-pyaterka-tsirkulyarnaya-ekonomika/.