CIRCULAR BUSINESS MODELS: IMPLEMENTATION BARRIERS AND CONSUMER BEHAVIOR

Abstract

The relevance of the study lies in the need for innovative approaches to business models that can contribute to the sustainable development of the country, particularly in the context of rebuilding infrastructure and minimizing the ecological damage caused by the war. A review of existing literature reveals that while significant strides have been made globally in implementing CBMs, there are several barriers to their widespread adoption in Ukraine. These barriers are technical, economic, social, and regulatory in nature. Technically, there is a lack of infrastructure for efficient waste collection and recycling, particularly for electronic waste, which is critical for advancing circular processes. Economically, the initial investment required for adopting circular practices is often seen as prohibitive, especially for small and medium-sized enterprises. Socially, the general public’s awareness and willingness to engage with sustainable consumption habits remain low. Additionally, regulatory frameworks supporting circular practices are insufficient, which hinders businesses from fully integrating circular economy principles. The paper emphasizes the importance of consumer behavior in the successful implementation of CBMs. It discusses how public awareness campaigns and educational initiatives can play a crucial role in shaping consumer attitudes towards sustainable consumption. Furthermore, the paper highlights the necessity of creating financial incentives, such as subsidies and tax breaks, to make circular products more affordable for the general population. It also discusses the role of eco-branding in promoting circular products by enhancing consumer trust and loyalty, as well as fostering a culture of sustainability. In conclusion, the research underscores the importance of strategic investments in infrastructure, technology, and education to create an enabling environment for CBMs in Ukraine. It also highlights the need for a comprehensive regulatory framework and the active participation of both the public and private sectors to drive the transition to a circular economy. By addressing these barriers and leveraging the potential of consumer behavior change, Ukraine can achieve sustainable economic growth, reduce environmental impact, and foster innovation in its post-war recovery efforts.