Analysis of the efficiency of structural transformations in the economy of large cities in the Western Region in the context of priorities of the circular economy model development

Abstract

Based on the analysis of the efficiency of the structural transformations in the economy of large cities in the Western Region, the paper proves that their socio-economic systems are in the initial stages of reorientation from the traditional linear model to the model based on the concept of the circular economy. This is confirmed by the low level of products and waste utilization, low volumes of their reuse, and low requirements of national environmental legislation for the formation of closed-loop production, as well as insufficient activity of government, business, society, and public organizations in forming the main components of the circular economy. In order to assess the current level of the circular economy development of large cities in the Western Region of Ukraine, a modified index of circular economy development is applied. Based on the results, the paper proves that the linear model with a high level of material consumption and raw materials specialization continues to dominate in their socio-economic systems, generating significant amounts of waste, which are still managed through outdated approaches. The introduction of modern technologies and methods of recycling, recovery, and reuse is at a critically low level, which is confirmed by the low average values of the circular economy development index in large cities of the Western Region of Ukraine compared to developed EU countries. The level of circular economy development in large cities of the Western Region of Ukraine, as well as in Ukraine in general, is insufficient due to several regulatory, socio-economic, and technological obstacles. Concentrated efforts of government and business to reduce and overcome these obstacles can play a positive role in shaping the circular economy in the regions of Ukraine. Strengthening the efficiency and development of specialized regulatory support, on the one hand, and state support for companies and research projects related to the circular economy, on the other hand, should be powerful incentives for the transformation of linear models of regional and municipal socio-economic systems into a circular one.