The concept of circular economy have gained a popularity in the scientific areas for the past decades due to raising influence of climate change, overpopulation, deforestation, resource depletion, urbanization, pollution and other global issues. Real estate is crucial aspect for every human being, because majority of people spend majority of their lifetime in buildings which are mainly located in cities. Purpose of the study is to reflect how built environment and real estate industry can benefit from the features of circular economy concept while promoting the practices of sustainable development. Authors have carried out a study based on the methodology of literature review and state of the art review to show how features of circular economy can support practices of sustainable construction. Results show that the construction processes can be supported by features of circular economy throughout the whole life cycle of construction project including logistics, supply chains, design, manufacturing process, exploitation and maintenance of real estate and reusing the building materials. Research indicates that urban circular economy contributes to the development of sustainable societies. Additionally, efficient implementation of circular construction requires profitability for majority of stakeholders.
1-Synergy is interaction of two or more system elements that produce a combined effect greater than the sum of their separate effects. The additional effect or the difference that is created from such an interaction is called synergy effect or synergistic effect. A system can be economical, technical or others. The effect of synergy can be both positive and negative. The positive synergy is sometimes expressed as '2+2=5' effect or '1+1=3' effect, negative synergy is expressed as '2+2<4' effect. The negative synergy effect is called dissynergy, zero synergy effect or asynergy. The global population is growing and it has an impact on the environment. In connection with the limited resources and the not limited human needs, it is necessary to save resources. To ensure that there are enough food, water and wealth in future, we need to switch from a linear to a circular economy. The goal is to ensure healthy and safe living and working conditions and cause less harm to the environment. The highest synergy is identified between green economy and circular economy, which can provide sustainable development in an urban environment and rural areas. Additionally, all of these relations are part of geoeconomics.
Economic models are built primarily following the classical economic theories, but a challenge to build good models with classical theories is needed to define the exact value of the Earth, which is hardly definable. Quite often national gross product indicator calculation reuses the same performance indicators, where the resource and income distribution system is not linked to production factors. The resource and income distribution system is primarily associated with low productivity (execution of a sales plan, execution of a profit plan, profitability level, increase in market share, personnel turnover rate, hours worked per employee). Changes in the productive and economic structures of the markets result in new innovative growth patterns which, based on customer motivation, are linked to the concentration of capital in regional and national markets, the growth of transnational markets and the development of technology. At the same time, extensive economic development through natural resources leads to deforestation, landscape changes, desertification, swamping and soil fertility renewal. So far, it often has been assumed that economic growth depends on the use of natural resources, and natural resources are unlimited. The results are “resource crisis”: resources are running out and resource prices are rising, thus invalidating a particular model. On the other hand, the eco-economy approach is a sustainable future for the economic modelling. The principle of eco-economy is based on a production system, which relies on re-cyclicality (the basis is the production of zero waste production). For this to happen, a transition to a completely new mind-set is needed. The research results were previously approbated during the graduate meeting of the Baltic DBU scholarship holders from 4 to 6 May 2018 in Latvia.
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