CIRCULAR ECONOMY AS AN ALTERNATIVE TO THE TRADITIONAL LINEAR ECONOMY: CASE STUDY OF THE EU

Abstract

Objective: This article aims to identify the main characteristics and trends in the development of the circular economy in EU countries and the key features of this process concerning the implementation of traditional linear economic systems. Theoretical framework: The industrial revolution and rapid economic development over a short time have changed the state of the environment. Excessive consumption, the basis of modern society, has caused climate change and intensified countless environmental and social problems. Method: Questionnaire survey, which was conducted by the authors of the study online to practically clarify the most critical issues related to the analysis of trends in the implementation of the circular economy. Results and conclusion: The study identified the top, most important features of the concept and the circular economy model, the main trends in the development of the circular economy in EU countries, and the key differences between the circular and linear economies. The research authors proposed classifying circular business models, which include four main types: closed loop, circular supply chain, resource recovery, and product life extension. The study also found that implementing circular economy principles in EU countries positively impacts economic growth, job creation, and environmental protection. Implications of the research: The authors concluded that the transition to a circular economy is a global trend that requires the joint efforts of all countries and stakeholders. Originality/value: The originality and value of this research lie in its specific focus on the circular economy as an alternative to the traditional linear economy, using the case study of the European Union (EU).