THEORETICAL AND METHODOLOGICAL SUPPORT FOR STATE REGULATION OF IMPLEMENTING CIRCULAR ECONOMY MODELS AT THE MICRO-LEVEL

Keywords: agri-food business, circular economy, circular model, closed-loop business models, state regulation

Abstract

This article analyzes the significance of effective state regulation in implementing circular economy models at the micro level to ensure economic, environmental, and social progress in Ukraine. The purpose of the article is systematization of existing approaches and development of theoretical and methodological support for state regulation of the implementation of circular economy models at the micro level, including the substantiation of the mechanism for state regulation of the implementation of circular economy models at the micro level The study justifies clusters of state regulation initiatives for circular transformations: “promoters”, “facilitators” and “activators” which play different roles in regulating circular transformations. Studying of the theoretical foundations of concepts related to state regulation of systemic socio-economic processes has made it possible to determine that when implementing fundamental strategic changes, such as state regulatory initiatives, a specific sequence should be followed. Firstly, the optimization of existing methods of production, distribution, and consumption takes place. Secondly, with the active initiatives of state and local authorities, the transformation of production, distribution, and consumption methods and technologies is supported as a result of changes in the strategic concepts of national economic development. In the third stage of state regulation of transformational circular changes, the facilitation and encouragement of the final departure from traditional linear methods in economic practice occur. The study proposes a mechanism for state regulation of the establishment and development of a circular economy in the agri-food sector, which, unlike existing models. It also includes a unique approach that involves separating the financial-economic mechanism, combining the innovation mechanism with the digital component that will determine the potential and degree of inclusivity in access to innovative scientific developments, startups, projects, and other technological products in the future.

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Published
2024-08-26
How to Cite
Kuzoma, V. (2024). THEORETICAL AND METHODOLOGICAL SUPPORT FOR STATE REGULATION OF IMPLEMENTING CIRCULAR ECONOMY MODELS AT THE MICRO-LEVEL. Economy and Society, (66). Retrieved from https://economyandsociety.in.ua/index.php/journal/article/view/4550
Section
ECONOMICS