Evaluation of the Potential for the Development of the Circular Industry in the Region: A New Approach

Abstract

The construction of circular economic models in industry represents a critical mechanism for achieving sustainable development goals. However, data on the development of the circular economy, derived from diverse metrics and assessment methodologies, often yield contradictory results. In light of this, the study suggested a new approach to evaluating the potential for circularization. This approach entails identifying key factors influencing circularization and assessing their suitability for the implementation of circular models of different levels. The study identified factors and indicators of the potential for industrial circularization at the regional level. The paper proposed a classification of circular economy models that simultaneously take into account the length of the production cycle and the degree of proximity to the circular economy. The rating method is employed to evaluate the potential of a region for the successful implementation of circular economy models. The rating is calculated by constructing both a general integral circularization potential index and individual sub-indices. The application of this methodology enabled the development of a ranking of Russian regions based on their potential for industrial circularization. To make recommendations, the analyzed regions were divided into four groups, according to an evaluation of the circularization potential.