Nikitaeva A.Yu., Shestopalova O.S. Formation Mechanism of Circular Economy: Theoretical Aspects and Practice in South of Russia

Anastasia Yu. Nikitaeva
Southern Federal University, Rostov-on-Don, Russian Federation
Olga S. Shestopalova
Southern Federal University, Rostov-on-Don, Russian Federation

Abstract. Currently, one of the priority concepts that can act as a theoretical platform for the sustainable development of the national economic system is the circular economy. Despite all the advantages theoretically justified and confirmed by practice, the practical implementation of a closed-loop economy requires an effective formation mechanism for this economic model. For the Russian economy, it is advisable to study such a mechanism at the level of the regional economy. With this in mind, the study defines the content of the mechanism for the formation of a closed-cycle economy. The formation mechanism of a circular economy is considered in the paper as a synthetic category encompassing a set of principles, methods, subjects, algorithms, technologies, structures, and resources through which the transition to a closed-loop economy is carried out. The study specifies the key components of this mechanism and identifies indicators that allow quantifying the availability and effectiveness of the formation mechanism of a circular economy in different regions of the country. The paper shows that these indicators are mainly connected with the digitalization of the economy, the presence of new forms of economic interaction (organization of the economy), innovation, environmental protection, and rational use of resources. Taking this into consideration, a multiple regression model in the study was built, which allowed us to determine the indicators and, accordingly, the factors that have the greatest positive impact on the implementation of the circular transition at the mesolevel. The empirical analysis is based on data from the regions of the Southern Federal District and the North Caucasian Federal District. Indicators that positively influence the formation of a closed-loop economy are the share of organizations using artificial intelligence and the number of industrial parks. Consequently, in order to form a circular economy, governments should take measures aimed at increasing the presence of these elements of the mechanism in the economies of their regions, develop the use of artificial intelligence, and establish industrial parks, including eco-industrial parks. In addition, the role of the state and the formation of a specialized institutional environment and infrastructure, including logistics, are of great importance for the successful transition to a circular economy in the south of the country.
Key words: circular economy, South of Russia, formation mechanism, development of a closed-cycle economy, circular transition.
Citation. Nikitaeva A.Yu., Shestopalova O.S., 2023. Formation Mechanism of Circular Economy: Theoretical Aspects and Practice in South of Russia. Regionalnaya ekonomika. Yug Rossii [Regional Economy. South of Russia], vol. 11, no. 4, pp. 170-181. (in Russian). DOI: https://doi.org/10.15688/re.volsu.2023.4.15

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