Closed-loop economic model formation in the forest industry

Abstract

The article is devoted to solving the problems of constructing a closed-loop model in the forest industry. The transition to a circular economy requires introduction of innovations in production based on a long life cycle of goods and resources, restoration, reconstruction, the possibility of joint consumption and processing. An urgent problem is the organization of utilization and processing of waste from the forest industry, since this leads to the conservation of primary wood material and significantly reduces the amount of deforestation. The aim of the study is to assess the level of implementation of closed cycles in the forest industry to conserve natural resources, to ensure the protection of people and the environment in production and management. The key role in substantiating the results of the study was provided by the scientific methodology for studying socio-economic phenomena and processes, methods of systemic, criteria-based, institutional analysis, empirical generalization, and a normative approach. To simulate the development of cyclic development, economic opportunities are identified that allow involving additional resources in the secondary circulation, reducing the volume of burial and burning of wood waste, and reducing harmful environmental consequences. The circular forestry model requires government action to overcome institutional, economic and political barriers.