Analysis of green economy dimension in the context of circular economy: The case of Baltic sea region

Abstract

The circular economy is based on the synergy of economic, environmental and social dimensions on -micro, -meso and -macro levels. Integration of circular economy would help to shift from a linear economy, which promotes “take-make-waste” industrial model to a more effective economic system that is based on business models, which replace the “end-of-life” concept with reducing, alternatively reusing, recycling and recovering materials in production/distribution and consumption processes. This alternative model would encourage producers to develop innovative solutions to reduce production waste, be in the line of “green” production and resource efficient usage. A circular economy would help to solve problems of resource shortage, negative environmental impact, production and consumption waste by developing closer relationships between suppliers, manufacturers, retailers and consumers. Regulation and policy determents may influence consumer behavior by promoting investment into environmental and social drivers, subsidiaries for eco-innovation and eco-technology development, and supporting inefficient consumption taxes and production pollution taxes.