ІNTEGRATION OF THE PRINCIPLES OF THE CIRCULAR ECONOMY IN THE SUSTAINABLE DEVELOPMENT OF BUSINESS MODELS OF THE AGRICULTURAL SECTOR IN THE CONDITIONS OF DIGITALIZATION

The article is devoted to the study of the integration of the principles of the circular economy into the business model of the agricultural sector in the context of digital transformation. The aim of the study is to develop theoretical and practical foundations for the implementation of innovative approaches aimed at ensuring sustainable development, increasing economic efficiency, minimizing environmental impact and strengthening the social responsibility of enterprises. The paper analyzes the current challenges facing the agricultural sector, including the shortage of natural resources, climate change, the need to optimize production processes and increasing demand for environmentally friendly practices. It is determined that digitalization is a key tool for adapting agricultural business models to the principles of circularity. A multi-level theoretical approach is developed that allows integrating digital technologies, such as the Internet of Things (IoT), artificial intelligence and blockchain, into circular business models to increase the efficiency of resource management, reduce costs and ensure the competitiveness of enterprises. Based on the analysis, innovative business models based on the principles of the “9R” of the circular economy are proposed. These include “smart farming” platforms for real-time resource management, closed-loop cooperatives for waste sharing and recycling, and “production as a service” models that minimize environmental impact by extending the life cycle of machinery and equipment. As part of the study, a mathematical model was developed to assess the economic, social, and environmental impact of the proposed business models. The results confirm that the implementation of these models contributes to optimizing resource use, reducing operating costs, creating new sources of income, improving social employment, and reducing the environmental burden on the environment. The study has practical value for agricultural enterprises that seek to meet the current global challenges of sustainable development, and provides a theoretical basis for further scientific developments in this area.

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Publication Details

Journal
Economic scope
Published
2025-02-12
DOI
https://doi.org/10.30838/ep.197.38-45
Citations
2
Primary Topic
Digitalization and Economic Development in Agriculture
Type
article
Field-Weighted Citation Impact
4.45
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article

ІNTEGRATION OF THE PRINCIPLES OF THE CIRCULAR ECONOMY IN THE SUSTAINABLE DEVELOPMENT OF BUSINESS MODELS OF THE AGRICULTURAL SECTOR IN THE CONDITIONS OF DIGITALIZATION

Вікторія Кифяк
2 citations
Economic scope
Digitalization and Economic Development in Agriculture
4.45
article

ІNTEGRATION OF THE PRINCIPLES OF THE CIRCULAR ECONOMY IN THE SUSTAINABLE DEVELOPMENT OF BUSINESS MODELS OF THE AGRICULTURAL SECTOR IN THE CONDITIONS OF DIGITALIZATION

Вікторія Кифяк
article en
2 citations

Abstract

The article is devoted to the study of the integration of the principles of the circular economy into the business model of the agricultural sector in the context of digital transformation. The aim of the study is to develop theoretical and practical foundations for the implementation of innovative approaches aimed at ensuring sustainable development, increasing economic efficiency, minimizing environmental impact and strengthening the social responsibility of enterprises. The paper analyzes the current challenges facing the agricultural sector, including the shortage of natural resources, climate change, the need to optimize production processes and increasing demand for environmentally friendly practices. It is determined that digitalization is a key tool for adapting agricultural business models to the principles of circularity. A multi-level theoretical approach is developed that allows integrating digital technologies, such as the Internet of Things (IoT), artificial intelligence and blockchain, into circular business models to increase the efficiency of resource management, reduce costs and ensure the competitiveness of enterprises. Based on the analysis, innovative business models based on the principles of the “9R” of the circular economy are proposed. These include “smart farming” platforms for real-time resource management, closed-loop cooperatives for waste sharing and recycling, and “production as a service” models that minimize environmental impact by extending the life cycle of machinery and equipment. As part of the study, a mathematical model was developed to assess the economic, social, and environmental impact of the proposed business models. The results confirm that the implementation of these models contributes to optimizing resource use, reducing operating costs, creating new sources of income, improving social employment, and reducing the environmental burden on the environment. The study has practical value for agricultural enterprises that seek to meet the current global challenges of sustainable development, and provides a theoretical basis for further scientific developments in this area.

Economic scope(197)
Openalex Percentile: Top 7%
Digitalization and Economic Development in Agriculture
4.45
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