Ecological Criteria for Comparing Linear and Circular Economies

Nikolay Didenko,Djamilia Skripnuk,Yuri Klochkov

doi:10.3390/resources7030048

Nikolay Didenko, Djamilia Skripnuk + Show 1 more

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https://doi.org/10.3390/resources7030048

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Abstract

In the present article, the main principles of the circular economy are outlined in contradistinction with the existing and traditional linear economic model. An econometric model describing the influence of the linear economy on the environment is presented. The environment is characterized by seven key processes: change in global temperature; emissions of greenhouse gases from industry to the environment; emissions of greenhouse gases from agriculture to the environment; CO2 emissions into the environment; depletion of fresh water supplies; reduction of forest cover; and economic damage from climatological disasters. The model describing the impact of the traditional linear economy on the environment consists of seven interdependent econometric equations, each comprising an autoregressive distributed lag (ADL)-model. The proposed econometric model is used to analyze the environmental effects of the present linear economy. Methodological provisions for a transformational transition of the traditional linear economic model to the closed-loop systems, which also permit the impact of the closed-loop systems on the environment to be analyzed, are set out. Seven ecological indicators are proposed as criteria for comparing the traditional linear economy and the closed-loop systems. The manuscript presents a new approach for the determination of ecological criteria for comparing linear and circular economies. The results of the study could be interesting to address circular processes, which can be used as a criterion to establish ecological management according to the status of natural resources.

Highlights

IntroductionReferences to a circular economic model (closed-loop systems) are increasingly encountered as an alternative to the traditional linear economic model
In recent years, references to a circular economic model are increasingly encountered as an alternative to the traditional linear economic model
The study of the relationships between the environment, the economy, and industrial policies is usually focused on identifying the impact of individual factors on the environment, including anthropogenic influences outlined in References [13,16], the growth of urbanization outlined in Reference [10], and changes in technological standards outlined in References [11,12]

Summary

Introduction

References to a circular economic model (closed-loop systems) are increasingly encountered as an alternative to the traditional linear economic model. The basic principles of the circular economic model (closed-loop systems) are based on maximizing the value of the resources in use, the reuse of production and consumption wastes, and transition to the use of renewable energy sources. The methodology of the circular economy is based on the understanding that all thoughts and actions of the manufacturer of a product at the stage of manufacture should be aimed at understanding what to do with the product once its service life is complete. At the end of its life cycle, a product should be thought of as a resource rather than debris to be disposed of in landfill or by incineration. Even at the stage of originating the idea to create a new product, it is necessary to generate ideas about the circulation of the product in the economic system in such a way that it minimizes waste at all stages of its life cycle. A Resources 2018, 7, 48; doi:10.3390/resources7030048 www.mdpi.com/journal/resources

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