Development of a Closed Product Life Cycle and the “Polluter Pays” Principle in the Context of the Circular Economy

Abstract

With the current volumes of global consumption, the linear economic model of creating products with their further use and subsequent burial in landfills without taking into account environmental, social and economic consequences has proved to be ineffective and has caused a number of global problems. For sustainable development and the future, where waste is an asset and any value is restored, a circular economy model based on a closed product life cycle and the principle of extended producer responsibility, which have become the object of special attention of this study, has been actively formed in recent years. This article presents the main ways of recycling products and waste that meet the principles of sustainable development and the creation of a circular economy to achieve environmental safety, economic growth, environmental protection and social benefits.
 Objective: to develop a business decision-making process on the method of recycling products at the end of the life cycle as an integral part of the extended responsibility of the manufacturer for “closing the circuit” in the conditions of the development of the circular economy.
 Methods: general scientific methods of institutional, regulatory, economic analysis and synthesis of best practices and scientific literature within the framework of the modern concept of sustainable development.
 Results: methods of disposal of products at the end of use and waste are systematized, taking into account environmental, economic and social benefits, strategies of relations between the consumer and the manufacturer for the return of the product are correlated with circular business models, a business decision-making process for choosing a method of disposal of products at the end of the life cycle is developed.
 Scope of the results: the results of this study can be used by enterprises when implementing circular business models and expanding the responsibility of the manufacturer for the disposal of products at the end of its life cycle, by state authorities when forming a sustainable development strategy, as well as introducing a model of the circular economy of the Russian Federation to achieve climate neutrality and environmental safety, improve the welfare of citizens, economic efficiency and competitiveness of enterprises.