BUSINESS MODELS OF CIRCULAR ECONOMY: CONCEPTUAL DISCOURSE

Abstract

Current tasks of harmonization of economic interests with preservation of the natural balance of the ecological system and rational use of nature cause to analyze the advantages of circular business models. It is substantiated that the circular economy is a combined mobile economic system formed on the basis of social, ecological and economic regeneration. The article presents a comparative analysis of linear and circular models of economy. On the basis of general scientific methods of conceptual modeling the features of business model in circular economy are outlined; the classification of circular business models on the basis of ReSOLVE-criteria is offered. It is outlined that the mechanism for building a circular economy is formed by: minimization of materials and resources for production; prolongation of the products life cycle); commercialization of innovation results; replacement of exhaustible resources with renewable sources; use of technological innovations in the process of product reuse; creation of innovative platforms for technology exchange and sharing. The basic circular business models are characterized. “Circular Suppliers” provides the optimization of the use of material, fuel, energy and bioresources, which are the basis of the circular system of production and consumption. “Resources Recovery” helps to minimize the loss of resources and increase the profitability of production. “Product Life Extension” determines the maximum presence of products in economic activity without the involvement of additional primary resources. “Sharing Platforms” is formed on the basis of exchange or sharing the goods or assets. “Product as a Service” helps to increase the intensity of product use. It is substantiated that the main directions of the circular economy are: increasing interest in investment development of environmental risks; growth of “green” companies capitalization; development of consumption ecological culture; rapid growth of the “sharing” sector; implementation of environmental trends in various business spheres. It is determined that circular business models regenerate the relationship between producers and consumers in order to achieve environmentally friendly social and economic growth.