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Determinants of the Formation of a Global Inclusive Circular Economy
Zvarych I. Y.

Zvarych, Iryna Ya. (2021) “Determinants of the Formation of a Global Inclusive Circular Economy.” Business Inform 1:40–48.
https://doi.org/10.32983/2222-4459-2021-1-40-48

Section: Globalization Processes in the Economy

UDC 339.926:339.972:339.982

Abstract:
The transitive path of transition from linear to circular economy is marked by a change in the positioning of global risks from year to year, which is strictly defined by the determinants of such a change. Thus, the main risks for 2020 according to the World Economic Forum are those related to the environment and occupy the first positions in the ranking for the last three years (in particular, in 2019, the most influential was the risk of extreme weather events). A gradual increase in awareness of this risk has led to a change in the moods of both manufacturers and consumers. Experts assessed climate change as the main risk in 2019, ahead of losses from cyberattacks, financial instability and terrorism. Thus, in order to mitigate this risk in 2020, the global business community proposed to implement circular «constructions», reducing the use of resources and prioritizing low-carbon materials. The potential consequences of the transition to a circular economy regarding greenhouse gas emissions are significant, and they can be achieved mainly by increasing the efficiency of resource use; increasing the useful life of buildings and assets; increase in processing and reuse and absolute reduction of the use of primary raw materials. Reducing the intensity of materials production, sustainable land use and rehabilitation, protection of ecosystems, efficiency of the use of resources and renewable energy sources – all this is related to the concept of a circular economy that will help preserve natural capital. Thus, a circular economy can be seen as an effective strategy to help mitigate climate change.

Keywords: global inclusive circular economy, circularity, global ecological risks, inclusive growth.

Fig.: 2. Tabl.: 3. Bibl.: 18.

Zvarych Iryna Ya. – Doctor of Sciences (Economics), Associate Professor, Professor, Department of International Economics, West Ukrainian National University (11 Lvivska Str., Ternopil, 46009, Ukraine)
Email: [email protected]

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