2020 (17), №1

Circular Economy: Basic Business Models and Economic Opportunities

For citation: 

Valko, D. V. (2020). Circular Economy: Basic Business Models and Economic Opportunities. Zhurnal Economicheskoj Teorii [Russian Journal of Economic Theory], 17 (1), 156-163


In the conditions of global competition, the opportunities of increasing the efficiency of production through reduced costs of products and expanding sales are reduced. It encourages firms to move towards a complete revision of the value chains in favor of sustainable closed production and consumption cycles. The aim of the article is to improve the conceptual and applied aspects of the industrial infrastructure transition of the domestic economy to the principles of sustainable development. The transition is based on implementing and adaptation of specific circular business models at the industry and the firm levels. On the basis of scientific and conceptual modeling methods we have identified features of a typical business model in a circular economy, characterized the main areas of circular business models and analyzed the approaches in the field of their taxonomy. The ReSOLVE-classification of circular business models has been proposed to use. A number of barriers to the transition of the Russian economy to circular management have been noted and a methodological guideline has been proposed. The results of the study can be used by authorities and industrial enterprises in the formation of long-term and sustainable development strategies. In the future, the results will serve as the basis for the development of scientific approaches and practical tools in the field of institutional change and industrial policy based on circular principles and models.

PDF full
Downloaded: 9

Danila Valeryevich Valko — PhD in Economics, Associate Professor, Pro-rector for Research, South-Ural Technological University (Chelyabinsk, Russian Federation; e-mail: valkodv@inueco.ru).

Ali, S. S. (2015). Optimizatsionnyy podkhod v upravlenii «zelenymi» tsepochkami postavok s obratnoy svyaz’yu (na primere indiyskoy kompanii) [Optimization approach in the management of «green» supply chain with feedback (the example of an Indian company)]. Problemy nelineynogo analiza v inzhenernykh sistemakh [Problems of nonlinear analysis in engineering systems], 21, 2(44), 121–146. (In Russ.)

Batova, N., Sachek, P., & Tochitskaya, I. (2018). Tsirkulyarnaya ekonomika v deystvii: formy organizatsii i luchshie prak- tiki [Circular economics in the action: forms of organization and best practices]. BEROC Green Economy Policy Paper Series, 5, 5, available at: www.ipm.by/webroot/delivery/files/PP_5_rus.pdf (accessed: 25.01.2019). (In Russ.)

Valko, D. V. (2018). Tsirkulyarnaya ekonomika: teoreticheskaya model’ i effekty realizatsii [Circular economy: a theoretical model and implementation effects]. Natsional’nye interesy: prioritety i bezopasnost’ [National interests: Priorities and Security], 14, 8, 1415–1429. (In Russ.)

Grigoryan, A. A. (2018). Vopros potrebleniya v kontseptsii tsirkulyarnoy ekonomiki [Consumption in the circular economy concept]. Mezhdunarodnyy zhurnal gumanitarnykh i estestvennykh nauk [International Journal of Humanities and Natural Sciences], 9, 157–159. (In Russ.)

Pakhomova, N. V., Rikhter, K. K., & Vetrova, M. A. (2017). Perekhod k tsirkulyarnoy ekonomike i zamknutym tsepyam postavok kak faktor ustoychivogo razvitiya [Transition to a circular economy and closed supply chains as a factor of sustainable development]. Vestnik Sankt-Peterburgskogo universiteta. Ekonomika [Herald of St. Petersburg University. Economy], 2, 244–268. (In Russ.)

Pakhomova, N. V., Rikhter, K. K., & Vetrova, M. A. (2016). Formirovanie sovremennoy sistemy obrashcheniya s otkhodami — ot bezopasnogo zakhoroneniya k remanufakturingu (opyt ES, zadachi dlya Rossii) [Formation of a modern waste management system — from safe disposal to remanufacturing (EU experience, tasks for Russia)]. Problemy sovremennoy ekonomiki [Problems of modern economics], 4 (60), 181–188. (In Russ.)

Ratner, S. V. (2018). Tsirkulyarnaya ekonomika: teoreticheskie osnovy i prakticheskie prilozheniya v oblasti regional’noy ekonomiki i upravleniya [Circular economy: theoretical foundations and practical applications in the field of regional economy and management]. Innovatsii [Innovations], 9, 29–37. (In Russ.)

Tupitsyna, A. A., & Esipova, O. V. (2018). Strategiya tsirkulyarnoy ekonomiki — pravil’nyy vybor dlya sovremennoy Rossii? [Strategy of circular economy — is the right choice for modern Russia?]. Problemy sovremennoy nauki i obrazovaniya [Problems of modern science and education], 1 (121), 24–27. (In Russ.)

Antikainen, M., & Valkokari, K. A (2016). Framework for Sustainable Circular Business Model Innovation. Technology Innovation. Management Review, 6 (7), 5–12.

Beasley, J., & Georgeson, R. (2014). Advancing Resource Efficiency in Europe. Brussels: European environmental bureau, 50, available at: makeresourcescount.eu/wp-content/uploads/2014/11/FINAL_Advancing-Resource-Efficiency-in-Europe_ PUBL.pdf (accessed: 25.01.2019).

Dedicoat, C. (2016). The importance of a circular economy. Cisco’s Technology News Site, available at: newsroom.cisco. com/feature-content?articleId=1738213 (accessed: 25.01.2019).

Frankenberger, K., Weiblen, T., Csik, M., & Gassmann, O. (2013). The 4I-framework of business model innovation: A structured view on process phases and challenges. International Journal of Product Development, 18, 249–273.

Kirchherr, J., Hekkert, M., Bour, R., Huibrechtse-Truijens, A., Kostense-Smit, E., & Muller, J. (2018). Barriers to the Circular Economy: Evidence from the European Union (EU). Ecological Economics, 150, 264–272.

Lacy, P., & Rutqvist, J. (2015). Waste to Wealth: The Circular Economy Advantage. Palgrave Macmillan UK, 264.

Lewandowski, M. (2016). Designing the Business Models for Circular Economy — Towards the Conceptual Framework. Sustainability, 8(1), 43, 472–499.

Lifset, R., & Anex, R. (2009). The Indirect Effects of Industrial Ecology. Journal of Industrial Ecology, 13, 347–349.

Linder, M., & Williander, M. (2017). Circular Business Model Innovation: Inherent Uncertainties. Business, Strategy and the Environment, 26, 2, 182–196.

Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. John Wiley and Sons, 288.

Pauli, G. A. (2010). The Blue Economy: 10 Years, 100 Innovations, 100 Million Jobs. Paradigm Publications, 308.

Scott, J. T. (2013). The Sustainable Business a Practitioner’s Guide to Achieving Long-Term Profitability and Competitiveness. Greenleaf Publishing: Sheffield, UK, 236.

Stahel, W. R. (1984). The Product-Life Factor / In Orr S. G. An Inquiry into the Nature of Sustainable Societies, the Role of the Private Sector. The Mitchell Prizes, 232.

Thaler, R. H., & Sunstein, C. R. (2008). Nudge: Improving Decisions about Health, Wealth, and Happiness. Yale University Press, 304.

Van der Straaten, J., & Van den Bergh, J. C. (1994). Towards Sustainable Development: Concepts, Methods, and Policy. California: Island Press, 299.