A Theorem on the Recycling Paradox

Cherevatskyi, Danylo; Smirnov, Roman G.; Lyakh, O. V.; Soldak, Мyroslava

doi:10.1007/978-3-031-23463-7_15

Cited by 2 publications

(3 citation statements)

References 6 publications

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“…Later, due to declining demand for recycling products, low prices for slag as raw material, and the high cost of transportation, the situation worsened, leading to a decrease in slag processing and a significant increase in landfill volume. According to the findings presented in [9]:…”

Section: Resultsmentioning

confidence: 99%

“…It is worth noting that scientists from the Institute of Economics of Industry of the National Academy of Sciences of Ukraine have made a certain contribution to the topic of RCE at a micro level. In 2022 the authors conducted a detailed study to find an optimal strategy for a company engaged in a circular economy, specifically in the recycling of blast furnace slag [9].…”

Section: Literature Reviewmentioning

confidence: 99%

“…The Robinson Crusoe economy was considered as aggregated [10], schizophrenic [11], but no one considered the "1×1×2" economy as a macro-level circular economy. While the functioning of the Robinson producer has been extensively studied [9], the indifference curves [12] characteristic of the Robinson consumer remain fragmented. Despite being invented in the 1930s, indifference curves continue to attract the attention of researchers [13].…”

Section: Literature Reviewmentioning

confidence: 99%

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The circular economy of Robinson Crusoe: Exploring the impact of the representative consumer

Cherevatsky,

Smirnov,

Lypnytskyi

et al. 2023

E3S Web Conf.

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The circular economy typically addresses waste recycling issues at the micro-level, primarily focusing on individual enterprises, and less frequently at the meso-level, such as regions. This article introduces a novel perspective by examining recycling processes not only at the macro level but also through the lens of the Robinson Crusoe economy (ERC). The ERC concept was originally proposed in the 1930s. In this new paradigm, a representative producer, embodying Robinson Crusoe, establishes a business structure that implements a circular economy mega-project. This project comprises individual mono-projects aimed at maximizing profits derived from waste recycling. On the other hand, a representative consumer (representing the state and society) seeks to maximize its inherent utility, including taxes and fees. Now, the focus shifts to Robinson Crusoe as a consumer, thus defining the objective of this study as identifying approaches to determining the macroeconomic effects associated with such consumption. The recycling of blast-furnace slags in Ukraine serves as a case study for analysis.

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Section: Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

The circular economy of Robinson Crusoe: Exploring the impact of the representative consumer

Cherevatsky,

Smirnov,

Lypnytskyi

et al. 2023

E3S Web Conf.

View full text Add to dashboard Cite

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The resilience of economics and the economics of resilience

Cherevatskyi¹

2023

Ekon. promisl.

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Resilience as a category of mechanics means an ability of elastic bodies to restore their shape after mechanical pressure. Against the background of the SARS Covid-19 pandemic and other global cataclysms, the concept of resilience as stress resistance is gaining more and more popularity in economic science. It is even about the paradigmatic change of Industry 4.0 to Industry 5.0, the characteristic of economical resilience for which should be significant, while the industry itself is given the role of necessary transformations’ driver. A fairly widespread version of resilience in the economy is the ability of the ecosystem, business and society to cope with shocks and continue to function approximately the same way. The mission of this work, its purpose is to specify the concept of resilience to the needs of industrialists. The category of resilience, by its very name, is an allusion to Hooke's law, which is also called the law of elasticity. Any force applied to the body causes its (body) deformation, the size of which, according to Hooke's law, depends on the force itself and the inherent rigidity of the body. As long as the deformations grow linearly (in proportion to the effort), the body retains its elasticity and returns to its original dimensions after the load is removed. This happens until the load does not exceed the limit of proportionality, beyond which the elongation of the sample occurs without increasing the force with subsequent destruction of the body. The task of maintaining resilience, thus, comes down to knowing the nature of the development of deformations of a specific material – the economy of the enterprise, the region, the national economy – and preventing the loading of the "sample" beyond its inherent level of proportionality. Thus, it makes sense to accept that each company has its own ‘rigidity’ and characteristic ‘deformations’ of the state. Each company has its own production function, which, in the case of using the Cobb-Douglas model, is the dependence of output on labor and capital costs. The inherent rigidity of the economic structure determines the elasticity of its functioning. The long-term impact of adverse forces leads not only to a reduction in production, but also to the closing of production facilities, the dismissal of personnel, which causes a further decline in production and the development of a vicious circle up to the liquidation of the business structure itself due to the complete economic/commercial impracticality of its existence. Using the example of the cumulative cost curve of metallurgical coal exporters, it is proved that the resilience of any micro-, meso- or macroeconomy depends on a combination of natural (quality of the deposit, for example), geographical (proximity to ports, development of railway connections etc.), technological factors and the economic and political situation. The paradigm of Industry 5.0 is fundamentally distinguished by another "assembly point" – the transition from the neoliberal model of capitalism, which has the "primacy of shareholders" and the goal of maximizing profit, to a model based on the principles of ESG (from Environmental, Social, and Corporate Governance). The second main point of Industry 5.0 is the desire to achieve the greatest autonomy of economic structures. The noted points can significantly influence the practice of enterprises and regions in terms of ensuring their resilience.

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A Theorem on the Recycling Paradox

Cited by 2 publications

References 6 publications

The circular economy of Robinson Crusoe: Exploring the impact of the representative consumer

The circular economy of Robinson Crusoe: Exploring the impact of the representative consumer

The resilience of economics and the economics of resilience

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