Circular Economics: Concept Formation, Evolution of Development, Barriers, Problems and Prospects

Abstract

The article examines the evolution and preconditions for the formation, challenges and factors of the circular economy. The existing scientific approaches to the definition of “circular economy” are analyzed and generalized. It is proposed to consider the term “circular economy” from three positions: as a modern paradigm of development of logistics systems; strategic direction of sustainable development; economic model, which is based on the technology of recycling industrial waste in order to achieve sustainable operation of business models in the national economy. The statistical analysis of the development of the national logistics system taking into account the ecological component is performed. It is established that the “green” transformation of the logistics system of Ukraine in a circular economy is not effective enough. This is due to the limited amount of funding for environmental protection and insufficient development of the industrial waste recycling system. These issues require the development of a set of appropriate institutional measures and the adoption of radical logistics decisions, taking into account the best European experience.