Barriers and Drivers for Circular Economy 2.0 on the Firm Level: Russian Case

Abstract

Historically, the development of the circular economy (CE) proceeds from the CE 1.0 stage, characterized by attention to waste management and recycling, to the CE 2.0 stage with an emphasis on resource efficiency and eco-efficiency, to the current CE 3.0 stage, in which the key factor to a company’s success is the business model. However, not all countries of the world simultaneously began transforming the national economy from a linear model to a circular one; many are still at the CE 1.0 and CE 2.0 stages, and do not have a developed system of institutions supporting the circular economy. In Russia, the concept of a circular economy has not yet received recognition in society and government; the stage of its development can be defined as CE 2.0. This study compares the barriers and drivers of CE development in the EU countries, a group of countries with a well-developed institutional support system, and in Russia, a country that does not have such a system. The study reveals that the most significant difference between countries with mature systems of institutional support and Russia lies in the regulatory sphere and in information and awareness about new available technologies and ways to increase resource efficiency, commercial attractiveness, and organizational feasibility. Changes in the first sphere are impossible without the participation of the national authorities; however, changes in the information sphere are feasible even without the government’s support. The actors in such changes can be international companies with access to resource-efficient new technologies and processes for organizing business.

The Circular Economy, the SMEs, and the State: How to Govern a Circular Institutional Change Process?

“…However, the USA does not have a similar legal framework (EPA, 2021). As another example, Ratner et al (2021) point out the lack of the macro-level policy frameworks as an important reason behind why the Russian firms lag behind the EU firms in performing circular actions. In this regard, Cantú et al (2021) also argue that the poor regulative power of the emerging countries compared to the developed countries is an important structural reason for the SMEs in the emerging countries lagging behind the ones in the developed countries.…”

Circular Economy Aspects of Permanent Magnet Synchronous Reluctance Machine Design for Electric Vehicle Applications: A Review

“…Most implementation projects result in higher production costs due to limited demand for resource-efficient goods and services. Russian firms' primary obstacles to implementing CE include complex administrative and regulatory procedures and high costs associated with resource efficiency projects [29]. Moreover, the ongoing conflict between Russia and Ukraine may further hinder the implementation of such measures.…”

The Circular Economy Gap in the European Union: Convergence or Divergence Among Member States?

“…For instance, Ratner et al. [ 34 ] clustered companies from several EU countries and Russia according to their institutional support system. Botezat et al.…”

“…Several studies have identified CE profiles, ranging from the firm to the country level. For instance, Ratner et al [34] clustered companies from several EU countries and Russia according to their institutional support system. Botezat et al [35] performed a cluster analysis of Romanian companies based on their level of green-oriented supply chain cooperation practices.…”