Economic Paradigm Research Articles

Who are the value transformers, value co-operators and value gatekeepers? New routes to value preservation in a sufficiency-based circular economy

Value preservation is key for the transition from a linear economy to a sufficiency-based circular economy. However, to keep the value of products and materials at the highest level possible over time, different actors such as businesses, designers, consumers, and policymakers must know when value is reduced during a product's lifetime, and how to capture and preserve this value.This study results in a comprehensive mapping of factors with a negative impact on the perceived value of products from a consumer's perspective and suggests new routes to value preservation, as a way of turning the negative factors into positive changes. Next, the paper presents a conceptual model for value preservation. The model identifies new key actors: value transformers (product developers), value co-operators (consumers), value gatekeepers (businesses), and value accountants (policymakers) and suggests important changes to their linear practices, which are needed for the sufficiency-based circular economy paradigm to flourish.

Rethinking the Theoretical Foundation of Economics I: The Multilevel Paradigm

Abstract This article is the first of a series that offers a new paradigm for economics, the “multilevel paradigm,” using generalized Darwinism as its theoretical framework. Generalized Darwinism refers to all processes that combine the ingredients of variation, selection, and replication – not just genetic evolution – making it relevant to the cultural evolution of economic systems that are embedded in political, social, and environmental systems. We contrast the multilevel paradigm with the neoclassical paradigm and other schools of economic thought. The multilevel paradigm, like the neoclassical paradigm, provides an integrative framework for micro- and macro-economics. It also incorporates the meso level, comprising groups of various sizes, linking micro and macro. Other schools of economic thought are not fully integrative in this sense, constituting instead a form of diffuse pluralism. In the integrative framework of the multilevel paradigm, many important ideas that are currently on the periphery of economics are brought toward the core.

A qualitative inquiry into sustainable transitions and business models in Icelandic energy-related companies

In the face of escalating environmental and social crises, the potential for a sustainable transition within the current sociotechnical system has emerged through innovation and alternative technologies. Despite offering diverse perspectives, sustainable transitions remain uncertain in terms of their nature and pathways. The research aims to bridge theory and reality through a case study to investigate the potential for sector-specific businesses to contribute to a sustainable transition within the current sociotechnical system. This study focuses on five Icelandic energy-related companies and two governing bodies within the energy value chain, and examines the sustainability of companies' business models and their contributions to different futures, and contextualizes the results within economic theory. The study identified two alternative economic paradigms, Green Growth (GG) and Post Growth (PG), as potential frameworks for achieving sustainable futures. The findings suggest Icelandic energy-related companies align with GG and predominantly prioritize energy efficiency, transparency enhancement, and environmental impact reduction, reflecting contributions to medium-term tactical level changes within the sociotechnical system. Challenges arise in fully implementing PG principles due to the complexities of reconciling energy production, consumption, and growth goals. The findings underscore the pivotal role of energy-related companies in sustainable transitions but emphasize the need for policy interventions to guide macroeconomic activities towards environmental and social wellbeing. The theoretical contribution of this study is the identification of alternative economic paradigms and construction of a sustainable business model for energy related companies. The practical contribution of this study is the framework used in evaluating the business model of companies in the energy sector which can provide practical understandings of the implementation of sustainable business models and a company's sustainability performance.

Population Changes Under the Impact of Industrialization in Vietnam: A Case Study of Binh Duong Province

Population change is a key component of Vietnam's economic development paradigm. However, in each locality, population shifts can be stimulating while also posing hurdles to socioeconomic development programs. This article assesses population changes in Binh Duong province and suggests plans for development and population control. The findings suggest that Binh Duong has a diversified population and is constantly receiving new population classes. Binh Duong's population increased the most rapidly between 1997 and 2023, following a centuries-long steady pace. This is also a time of dramatic demographic change, with the population becoming more multi-ethnic, multi-regional, multinational, and multicultural. Binh Duong's socioeconomic development successes reflect the contributions of all segments of the community, with immigrants playing a significant role. Binh Duong province must develop and implement policies for sustainable population management and development, including the establishment of a population database system linked to economic and social development strategies, the incorporation of population policies into economic, social, and cultural development programs and plans, and the linking of population development and management policies to sustainable population policies.

Sustainable Green Extraction of Carotenoid Pigments: Innovative Technologies and Bio-Based Solvents.

Carotenoids are ubiquitous and versatile isoprenoid compounds. The intake of foods rich in these pigments is often associated with health benefits, attributable to the provitamin A activity of some of them and different mechanisms. The importance of carotenoids and their derivatives for the production of foods and health-promotion through the diet is beyond doubt. In the new circular economy paradigm, the recovery of carotenoids in the biorefinery process is highly desirable, for which greener processes and solvents are being advocated for, considering the many studies being conducted at the laboratory scale. This review summarizes information on different extraction technologies (ultrasound, microwaves, pulsed electric fields, pressurized liquid extraction, sub- and supercritical fluid extraction, and enzyme-assisted extraction) and green solvents (ethyl lactate, 2-methyltetrahydrofuran, natural deep eutectic solvents, and ionic liquids), which are potential substitutes for more toxic and less environmentally friendly solvents. Additionally, it discusses the results of the latest studies on the sustainable green extraction of carotenoids. The conclusions drawn from the review indicate that while laboratory results are often promising, the scalability to real industrial scenarios poses a significant challenge. Furthermore, incorporating life cycle assessment analyses is crucial for a comprehensive evaluation of the sustainability of innovative extraction processes compared to industry-standard methods.

The application of artificial intelligence in waste management: understanding the potential of data-driven approaches for the circular economy paradigm

PurposeOur study examines how artificial intelligence (AI) can enhance decision-making processes to promote circular economy practices within the utility sector.Design/methodology/approachA unique case study of Alia Servizi Ambientali Spa, an Italian multi-utility company using AI for waste management, is analyzed using the Gioia method and semi-structured interviews.FindingsOur study discovers the proactive role of the user in waste management processes, the importance of economic incentives to increase the usefulness of the technology and the role of AI in waste management transformation processes (e.g. glass waste).Originality/valueThe present study enhances the circular economy model (transformation, distribution and recovery), uncovering AI’s role in waste management. Finally, we inspire managers with algorithms used for data-driven decisions.

Environmental impact assessment of steel reinforcing bar manufacturing process from scrap materials using life cycle assessment method: a case study on the Ethiopian metal industries

A clear understanding of the major environmental impacts of steelmaking from scraps, as well as potential solutions involving a circular economy paradigm, is essential. This study is conducted to pave the way for using life cycle assessment (LCA) to have sustainable development and effective resource management by evaluating the environmental impacts of the steel rebar manufacturing process using secondary resources. It is a cradle-to-gate LCA that includes scrap collection and sorting, transportation, melting, continuous casting, billet reheating, and reinforcing bar rolling. Inventory data were acquired as primary data from the factory and secondary data from ecoinvent v3.8, 2021 version integrated with SimaPro 9.4.0.2 faculty version. All of the analyses in this LCA were conducted using the Recipe 2016 Midpoint (H)V1.00 and Endpoint (I)V1.00 impact assessment techniques taking one-ton reinforcing bar production as reference flow. This LCA study shows that using renewable energy and bulk transport systems has a significant advantage in reducing the environmental impact created during steel production processes. Because of this, the global warming potential created during the rebar manufacturing process is 467 kgCO2 eq as taken from the environmental impact calculation report. By charging hot billet from the continuous casting machine (CCM) to the rolling mill and using an efficient transportation system, the environmental impact of GWP can be reduced by 50%.

International trade and investment: A review and research agenda

AbstractInternational trade and investment have always been an epicenter of research, and with the onset of the COVID‐19 pandemic, a surge in the publication of review articles focusing on different facets of trade and investment has been observed, but a comprehensive retrospective review of international trade and investment remains scarce. To address this gap, a systematic literature review of 30 articles published in A* and A ranked journals, along with performance analysis and science mapping of 720 articles retrieved from Scopus and Web of Science databases using bibliometric analysis is done. Considering the dynamic nature of international trade and investment, the relationship between export policies and international trade influences the global landscape, which fosters mutually beneficial relationships leading to economic cooperation. Capitalizing on opportunities and mitigating risks associated with international investment is crucial for maintaining sustainable international business operations. Through these interconnected relationships, the research contributes to the understanding of the interdependent forces shaping the global economic paradigm in a unified manner. Moreover, the study provides future research directions and questions which are culled from the analysis and offer potential advancements in the field of international trade and investment.

Nature-Based Solutions: Sustainable Development of Latin America

Latin America is a region with abundant natural resources and diverse cultures, much of which lies between the tropics. Sustainable agriculture, pasture, and forestry practices can have a reduced environmental impact in this region compared to other parts of the world. These integrated systems practices can create a balanced use of chemical inputs, harmonious relations between humans and soil-plants-livestock, and even provide a nature-based solution to climate change by sequestering carbon emissions and are also less likely to lead to soil degradation. These practices are central to a new economic paradigm focused on a sustainable and circular bioeconomy and depend on public policies, incentives, financial mechanisms, and commitments from the business. Carbon farming sustainable agriculture focused on increasing soil health and reducing emissions can gain scale with market-driven mechanisms to surpass the various challenges. This paper presents condensed information from primary and secondary sources, representing established knowledge in the field of soil carbon sequestration in agricultural lands and its role in carbon neutrality. By implementing these strategies, we can support farmers while contributing to the objectives set by the Paris Agreement and the UN's Sustainable Development Goals.

Evaluating the carbon total factor productivity of China: based on Cobb-Douglas production function.

This paper introduces a novel methodology for estimating carbon total factor productivity based on the Cobb-Douglas production function. The research method introduced in this article expands upon the framework for assessing total factor productivity through the Solow residual method. It unifies the conceptual and methodological aspects of carbon total factor productivity with those of single factor productivity. Utilizing panel data from various provinces between 2010 and 2021, we computed carbon total factor productivity to understand its implications for China in combating global climate change. We demonstrate that (i) we have introduced a method to handle negative coefficients in the Cobb-Douglas production function by incorporating productivity in lieu of input factors during calculations. (ii) Carbon total factor productivity, encapsulating the geometric weighted mean of labor, capital, and carbon productivity, holds notable economic relevance. Further, it serves as an integrative metric comprising carbon productivity intertwined with the mean labor and capital carbon factors. And (iii) the influence of carbon total factor productivity growth on economic progression remains relatively subdued, with escalating labor force growth posing detrimental effects on several provincial economies. Enhancing carbon total factor productivity emerges as an imperative to harmonize robust economic growth with strategic carbon curtailment. Our analytical framework provides nuanced perspectives on productivity determinants, accentuating the thrust towards sustainable evolution amidst climatic challenges. This investigation bears profound significance for policymakers endeavoring to sculpt a carbon-conscious economic paradigm in consonance with global climatic ambitions.

The Rise of Invisible Economy and its Philosophical Reflection

Since the new century, the progress of science and technology and the rational transformation of its achievements have brought about the rapid rise of intangible economy. The knowledge-based, image-based, programmatic, and branded nature of capital, as well as the spillover, sharing, and unstable ownership of products, are its prominent features. The rise of intangible economy has overturned the traditional economic operation mode in various fields such as economic structure, industrial pattern, organizational mode, and labor form, and has also triggered philosophical thinking about this new economic paradigm: data elements have become the first production factor with ontological significance, and the elasticity of labor mode has brought about the spiritual illusion of free and autonomous labor, and social polarization is rapidly intensifying.

Bergamot Byproducts: A Sustainable Source to Counteract Inflammation.

Chronic inflammation is the result of an acute inflammatory response that fails to eliminate the pathogenic agent or heal the tissue injury. The consequence of this failure lays the foundations to the onset of several chronic ailments, including skin disorders, respiratory and neurodegenerative diseases, metabolic syndrome, and, eventually, cancer. In this context, the long-term use of synthetic anti-inflammatory drugs to treat chronic illnesses cannot be tolerated by patients owing to the severe side effects. Based on this, the need for novel agents endowed with anti-inflammatory effects prompted to search potential candidates also within the plant kingdom, being recognized as a source of molecules currently employed in several therapeutical areas. Indeed, the ever-growing evidence on the anti-inflammatory properties of dietary polyphenols traced the route towards the study of flavonoid-rich sources, such as Citrus bergamia (bergamot) and its derivatives. Interestingly, the recent paradigm of the circular economy has promoted the valorization of Citrus fruit waste and, in regard to bergamot, it brought to light new evidence corroborating the anti-inflammatory potential of bergamot byproducts, thus increasing the scientific knowledge in this field. Therefore, this review aims to gather the latest literature supporting the beneficial role of both bergamot derivatives and waste products in different models of inflammatory-based diseases, thus highlighting the great potentiality of a waste re-evaluation perspective.

The impact of policy intervention on international wine demand

PurposeThe purpose of the study is to investigate the impact of implementing anti-dumping duties on imported Australian wine to China in the short- and long-run, respectively.Design/methodology/approachFirst, the Difference-in-Differences (DID) method is used in this study to evaluate the short-run causal effect of implementing anti-dumping duties on imported Australian wine to China. Second, a Bayesian ensemble method is used to predict 2023–2025 wine exports from Australia to China. The disparity between the forecasts and counterfactual prediction which assumes no anti-dumping duties represents the accumulated impact of the anti-dumping duties in the long run.FindingsThe anti-dumping duties resulted in a significant decline in red and rose, white and sparkling wine exports to China by 92.59%, 99.06% and 90.06%, respectively, in 2021. In the long run, wine exports to China are projected to continue this downward trend, with an average annual growth rate of −21.92%, −38.90% and −9.54% for the three types of wine, respectively. In contrast, the counterfactual prediction indicates an increase of 3.20%, 20.37% and 4.55% for the respective categories. Consequently, the policy intervention is expected to result in a decrease of 96.11%, 93.15% and 84.11% in red and rose, white and sparkling wine exports to China from 2021 to 2025.Originality/valueThe originality of this study lies in the creation of an economic paradigm for assessing policy impacts within the realm of wine economics. Methodologically, it also represents the pioneering application of the DID and Bayesian ensemble forecasting methods within the field of wine economics.

“GREEN FINANCE” IN THE PARADIGM OF SUSTAINABLE BANKING DEVELOPMENT OF THE ECONOMY OF UKRAINE

Introduction. The concept of sustainable development, which has been recognized by the UN and all countries of the world over the past 30-40 years, has become the consensus official paradigm of the world economy in the 21st century. The changed paradigm of the global economy, the foundation of which became the "Goals of sustainable development, the climate agenda and ESG – the transition created a new mega trend of the financial industry – “sustainable finance or finance of new quality”. “Green finance” is considered as a strategic direction of sustainable financing. The purpose of the article is to substantiate theoretical and practical conceptual approaches to the definitions of “green economy” and “green finance” in the new paradigm of the global economy, as well as their use in the sustainable investment development of Ukrainian economy. Results. Key initiatives in the field of sustainable development, as well as conceptual approaches to the definitions of "green economy" and "green finance" are considered. Focused attention on the concept of sustainable finance, the trend of which foresees a revolutionary approach from the classical paradigm of finance to a new paradigm. Financing instruments and mechanisms, such as green bonds, credits and loans, which are not fundamentally new in technical terms, but contain an ecological component, have been analyzed. It is argued that the concept of sustainable development finance acquires both theoretical justification and practical confirmation in the academic discourse. The NBU strategic approaches to the construction and development of sustainable financing, taking into account ESG factors in the European integration vector of Ukraine were studied. Conclusions. It is justified that the paradigm of sustainable finance should be considered in an inextricable relationship with the notions of sustainable development and sustainable investment, which is correlated with the achievement of sustainable development goals. In further scientific research, it is necessary to pay special attention to the key principles of the development of sustainable financing in Ukraine, especially the implementation of environmental, social and managerial (ESG) factors, which will become mandatory elements of the corporate management systems of financial institutions.

Выявление причин оттока населения из успешного дальневосточного арктического региона (1990–2020 гг.)

The problem of the Far Eastern macroregion after the transition to a market economy is the population outflow. Since 1990, the Chukotka Autonomous Okrug, the easternmost Arctic region of Russia, has lost the largest share of the population (70 %). The external success of the okrug’s socio-economic development, as evidenced by the primary industry growth and its leading places among the constituent entities of the Russian Federation in a number of key per capita indicators, does not contribute to the influx of labour resources, since this region is one of the smallest in Russia. The 30-year dynamics of socio-economic processes in Chukotka were examined to clarify the reasons for this paradox. To this end, main quantitative and qualitative indicators of the Chukotka Autonomous Okrug in the economic and social sphere were compared in the context of a planned economy (1990), when the region was attractive for living, and market one (2020), characterised by a massive population outflow. To assess living standards, the authors’ methodology was used to compare the purchasing power of income in different economic conditions. Living standards significantly decreased: in a planned economy, they exceeded the national average by 3 times, while in market conditions, there is only a slight excess (22 %). The population outflow from the Chukotka Autonomous Okrug resulted from a combination of two factors: a change in the economic paradigm and specificity of the Arctic region. Accordingly, the population of the northern and Arctic regions can be maintained only by providing a better living standard relative to other constituent entities of the Russian Federation. The findings can be used to improve the socio-economic policy of the Russian North and Arctic.

Features of the influence on the economic dynamics of social institutions, formal and informal values

The article reveals the role of legitimate institutions and illegitimate institutions, formal and informal dominant values in providing the environment in which the economy functions and develops, certain characteristic features, the qualitative properties of which play a decisive role in the process of forming economic dynamics. The influence of personal interest, not limited by the framework of sociocentric morality, on the development of negative trends in the surrounding natural environment, the growth of social contrasts, the formation of a shadow economy, the spread of corruption, the increase of transaction costs, the inhibition of modernization processes in the field of production of goods, the accumulation of complications in the provision of quality services, etc. An analysis of the problems and threats caused by the stimulation of personal interest without its simultaneous subordination to public interests and coordination with them was carried out. It has been revealed how personal interest, unlimited by ethical norms, becomes the cause of the development of negative trends at the current stage of the evolution of the consumer economy, under the influence of both the stimulation of artificial needs of ordinary citizens at the bottom of the socio-economic pyramid, and the growth of the scale of quasieconomic activities of leaders in the accumulation of capitalist resources at its top. The role of sociometric morality, corporate ethics, and solidarity between people in increasing the effectiveness of the organization of subjects of economic activity of various forms of ownership, scale of activity, and level of capitalization is revealed. It was established that legal regulators alone are not enough to ensure a high level of organizational efficiency of the economy, since all the nuances in the complex web of a large number of economic interactions cannot be taken into account in the current laws, for which certain «blind spots» always remain, in which there is room for manipulation. Along with this, it was analyzed how due to «blind spots» not taken into account in the laws, a favorable environment is formed for the development of corruption and imitation activities in the economy, in which the redistribution of income, resources, property, capital, etc. replaces the production of necessary goods and the multiplication of real capital at the disposal of society. The role of social norms, which are formed on the basis of dominant values, in constructing the quality of the environment in which the economy functions, receiving from it, depending on its properties, either impulses for its development, or inertial paralysis caused by the dominance of redistribution over progress, is revealed. It has been established that the economic paradigm has changed from the focus on multiplying productive capital to consumer priorities, rent, and power acquired through accumulated signs of wealth (money and securities), which step by step lose the ability to adequately reflect economic reality.

IMPACT OF BITCION IN CRYPTOCURRENCY

Crypto-currency, an encrypted, peer-to-peer network for facilitating digital barter, is a technology developed eight years ago. The first and most popular, is paving the way as a disruptive technology to long standing and unchanged financial payment systems that have been in place for many decades. While crypto-currencies are not likely to replace traditional fiat currency, they could change the way Internet-connected global markets interact with each other, clearing away barriers surrounding normative national currencies and exchange rates. Technology advances at a rapid rate, and the success of a given technology is almost solely dictated by the market upon which it seeks to improve. Crypto-currencies may revolutionize digital trade markets by creating a free flowing trading system without fees. A SWOT analysis of Bitcoin is presented, which illuminates some of the recent events and movements that could influence whether Bitcoin contributes to a shift in economic paradigms.

ПРОЕКТ ЭМПИРИЧЕСКОЙ ШКАЛЫ ЦИФРОВОЙ ТРАНСФОРМАЦИИ ПРОИЗВОДСТВЕННЫХ ПРЕДПРИЯТИЙ КИТАЯ

Digital transformation has become an important way to achieve high-quality growth of manufacturing enterprises. The article is devoted to a questionnaire on this topic, the purpose of which is to obtain useful information. Respondents should not only collect the necessary data, but also ensure their accuracy. The work is based on the theories of innovation, technical and economic paradigm. References are given to the literature of relevant scientists in terms of IT capabilities, organizational culture, leadership issues, digital customer orientation, data analysis and decision-making, and digital transformation strategies. The article is prepared in accordance with the cognitive habits of Chinese manufacturing enterprises.

Цифровая трансформация экономики: особенности индустриально развитых регионов

The concept of Industry 4.0 based on a set of information technologies forms a new economic paradigm and changes production models. These processes allow the most developed territories to create advantages by integrating digital technologies into their own economy. The purpose of the study is to identify the dynamics and features of the digital transformation processes of the economic sphere in the industrially developed regions of the Russian Federation. In the course of the study, the methods of structural, dynamic analysis of the indicators of official statistics of Russian Federal State Statistics Service in the sphere of digital technologies were used. The study showed the leadership of the macro-regions of the European part of Russia in terms of the digitalization of business, a larger use of digital technologies in industrial regions. The advance of the use of basic information technologies is up to 7 %, in the use of global networks – about 4%, automated data exchange – more than 5 %. In industrial regions, special software is used somewhat more often, especially for product lifecycle management, but less often in the field of scientific research. Such advanced digital technologies as geoinformation systems, digital platforms, artificial intelligence, industrial robots are used more often in industrial regions, and the Internet of Things and digital twins are used less often than in the whole of the Russian Federation. There is still a lag in terms of digitalization costs and the share of digital technology specialists in the economy of industrial regions, explained by the specifics of their production structure. The results obtained demonstrate the specifics of industrial regions and can be used in the process of forming the policy of the Russian Federation in the field of digitalization.

ВЕКТОРИ ТРАНСФОРМАЦІЇ УПРАВЛІНСЬКОЇ ПРАКТИКИ ПІДПРИЄМСТВ В УМОВАХ ПЕРЕХОДУ ДО БІОЕКОНОМІЧНОЇ МОДЕЛІ: ВИКЛИКИ ТА ПЕРСПЕКТИВИ

This scientific article is devoted to a comprehensive study of the vectors of transformation in the management practices of enterprises during the transition to a bioeconomic model. The relevance of the topic is driven by the paradigmatic shift in economic systems and the imperative need to ensure sustainable development in the context of global environmental challenges. The aim of the study is to identify and analyze the key vectors of management practice transformation, as well as to uncover emerging challenges and potential opportunities for business structures within the bioeconomic paradigm. The methodological toolkit of the research is based on the integration of systems analysis methods, decomposition, structural-functional analysis, foresight, and scenario planning. The application of STEEP analysis allowed for the identification of key drivers of change, while a combination of the Delphi method and expert panels facilitated the development of a predictive model for the future of management practices. The study conducted a comparative analysis of management practices in traditional and bioeconomic paradigms, revealing fundamental differences in approaches to strategic management, operations management, financial management, marketing, human resource management, and innovation activities. The developed predictive model identifies four potential scenarios for the development of management practices: “Green Revolution”, “Slow Adaptation”, “TechnoOptimism”, and “Regulatory Pressure”. It was established that the synergy between biotechnology and digital technologies is a key factor in shaping new management practices, and adaptability becomes a critical success factor in the bioeconomic context. The emergence of new management models, which consider the complexity of bioeconomic systems and are based on an integrated interdisciplinary knowledge base, is predicted. The practical value of the research lies in forming a theoretical and methodological foundation for developing adaptive strategies for implementing bioeconomic principles into enterprise management practices. The results obtained can be used as a scientific and methodological basis for business process transformation, organizational structure reconfiguration, and the development of new personnel competencies in the context of transitioning to a bioeconomic model. The study emphasizes the need for a proactive approach to the development of management practices, which can provide significant competitive advantages for organizations in the new economic paradigm.