CIRCULAR ECONOMY - A CONCEPTUAL MODEL

The concept of circular economy (CE) is to a growing extent treated as an alternative to the currently dominating open and linear model of economic activities. It represents a new and increasingly popular solution to environmental problems associated with too extensive use of existing natural resources, increasing pollution emission levels and too short product life-cycles. Based on a comprehensive review of the state-of-the-art research, an integrated circular economy conceptual model applying two basic research perspectives (top-down and bottom-up approaches) was developed. The author emphasizes the need for simultaneous consideration of four main aspects: (1) CE main objectives; (2) key challenges underlying this concept; (3) essential political and social activities, and (4) sustainable practices implemented by companies. The analysis allows to conclude that an effective implementation of the concept of circular economy calls for the consideration of different motivations existing among its stakeholders while economic and social benefits need to be aligned and balanced with ecological benefits.