THEORETICAL MODEL OF THE IMPACT OF THE CIRCULAR ECONOMY ON THE COUNTRY'S ECONOMIC GROWTH

Abstract

The work uses the method of scientific literature analysis and synthesis, which aim to reveal the impact of the circular economy on the economic growth of Lithuania. Factors in the circular economy are discussed, as well as the principles of the linear and circular economy and their differences. The main focus is on studying the economic growth of circular economy events in Lithuania at the county level. The topic is also relevant from other points of view: the possibilities of using waste as a resource and the prevention of damage to the environment.

The circular economy is described as a system that seeks to maintain added value on the condition that effective products are used as much as possible, thus minimizing waste. When a product reaches the end of its life cycle, its purpose is to remain in the economy as a resource that can be productively used again and again and create the most value.

The transformation of the linear economy into a circular economy was and is necessary, primarily in order to save the earth's resources, which are depleting the world. Take-make-dispose has been the way of late, ensuring high corporate profits and encouraging irresponsibility. Companies paid little attention to waste recycling, and consumers preferred to buy a new item rather than repair or recycle it. Such an approach wasted resources and did not solve the problem of saving them. The circular economy is already becoming an integral part of society, as humanity has realized that waste can also be a resource. The reuse of waste promotes circularity, and at the same time ¬– the emergence and development of new technologies. Thus, waste recycling allows not only to recover resources, but also to save and extract energy.

Economic growth leads to higher amounts of both generated and managed waste, growth in the number of patents in the circular economy and gross added share, and the amount of recycling of electronic, bio and packaging waste. Hence, not only does circularity determine economic growth, but economic growth also influences factors of a circular economy.