Circular economy in the resource supply for regional industrial development

Abstract

Unprecedented sanctions against Russia by the collective West has challenged the economic policy of our country, with import substitution and forced industrial development among the key priorities. Supplying resources for regional economies becomes crucial. Circular economy modelling based on the principles of resource conservation and zero waste appears a prominent tool for ensuring rational consumption and striking a suitable balance between the different interests. We adapt a circular economy model to assess the rational use of energy and water resources in Don river basin located in the South of Russia. We argue that Southern Russia represents a case of high relevance due to lack of modern manufacturing machines and up-to-date equipment, as well as the strategic significance of these areas for the whole Russian economy. River flow forecasting revealed available water resources which might be distributed. We also calculated water management balances and assessed the availability of water resources for participants of Don water management complex. Our model takes into account the difference in industries in terms of their technological advancement and therefore allows determining resource intensity parameters in context of possible coalition compromise. This study contributes to existing research since we combine a regional basin approach and a concept of closed-loop economy to deal with statistics on Don river basin