Mechanisms of the national economy transition to a circular model of development in the conditions of Ukraine’s integration into the European economic area: tax and regulatory aspects

The article is aimed at the proving of the necessity of an effective waste management system creation in Ukraine taking into account the risks connected with the European Green Deal implementation. It is determined that the key component of Ukraine's cooperation with the EU within the framework of the European Green Deal is the transition to a circular economic model. The effectiveness of mechanisms implementation for the transition of the national economy to a circular development model is analyzed. The main regulatory documents which regulate waste management in the European Union countries are considered and the current state of Ukrainian legislation approximation to EU law in the field of waste management is investigated. The organizational and legislative decisions necessary for the implementation of measures for transition to a circular economic model within the framework of the European Green Deal implementation have been identified. It has been determined that the basis of the European waste management system is premised on a five-stage waste management hierarchy, which implies a sequence of actions aimed at waste management in order to maximize resource conservation and minimize waste disposal to landfill. The effectiveness of the basic economic instruments applying for stimulating of compliance with the EU waste management hierarchy in Ukraine has been analyzed. It has been determined that the current practice of using tax environmental and economic tools is characterized by insufficient efficiency and partial loss of its intended purpose. The need of necessary conditions creation for the building of a powerful waste processing industry in Ukraine is substantiated due to the risks of the EU secondary raw materials market strengthening within the framework of the European Green Deal. The role and main assignments of the government, business and the public in creating of a modern waste management system according to European standards are determined. JEL Classification: D62, F63, F64, F68, H23, Q28, Q53