КРУЖНА ЕКОНОМИЈА

Circular Economy and Artificial Intelligence: Drivers of Sustainable Economic Development

Ognjen Erić, Dragan Gligorić, Milenko Krajišnik — Thu, 03 Apr 2025 00:00:00 +0200

Circular Economy (CE) and Artificial Intelligence (AI) are two key concepts that can significantly contribute to sustainable development. The first is based on the goal of maximizing resource utilization and minimizing waste, creating conditions for sustainable and environmentally friendly economic development. On the other hand, AI aims to optimize various processes and improve efficiency in the application of CE, providing tools for innovation and enhancement of business processes. The focus of this research is the analysis of performance indicators for the application of Circular Economy (CE), Artificial Intelligence (AI), and Sustainable Development Goals (SDGs) in countries with different levels of economic development and within the context of global territorial coverage. Circular Economy is crucial for sustainable development through waste reduction and maximum resource utilization. Countries such as the Netherlands, Denmark, and Germany demonstrate high recycling rates and use of secondary raw materials, while Romania, Bosnia and Herzegovina, and Albania lag in these aspects. Artificial Intelligence plays an important role in economic growth and innovation. The United States, China, and Japan lead in investments, number of patents, and number of experts in this field, making them leaders in AI technologies. Less developed countries have limited capacities and need international support for the development of this field. Sustainable Development Goals represent a comprehensive approach to economic, social, and environmental progress. Countries with high SDG indices, such as the Netherlands, Denmark, and Germany, successfully implement sustainable development strategies. In contrast, the least developed countries face significant challenges in achieving these goals. This research shows that developed countries are successful in applying Circular Economy and Artificial Intelligence, while less developed countries lag behind and need additional support. Global cooperation and the exchange of knowledge and technologies are crucial for achieving sustainable development and technological advancement in all countries.

From the Stone Hoe to Circular Agriculture

Thu, 03 Apr 2025 00:00:00 +0200

The history of agriculture is a long chain composed of numerous revolutionary innovations that have occurred, and continue to occur, following industrial revolutions and the advancements of modern science; in the 20th and 21st centuries, this progress has been much faster than ever before. There is no specific year that marks the founding of agriculture in human civilization; it cannot be precisely determined, as it was not a singular event but rather a process that spanned centuries. Researchers agree that Homo sapiens began to abandon the nomadic way of life, domesticate wild animals, and gather and plant cereal seeds in the early Neolithic period (Neolithic Revolution), when there was a rapid retreat of glaciers to the north and a warming of the climate. Most researchers believe this occurred around 10,000 years ago, although some suggest it may have been 12,000 or even 15,000 years ago. One of the first regions where humans engaged in agriculture was the area known as the Fertile Crescent, which spans the region that today includes Israel and Lebanon in the west and Iraq and Iran in the east, around the Euphrates and Tigris rivers. The development of agriculture during the Neolithic Revolution enabled population growth, the establishment of settlements, and the rise of more complex societies. It was a period of transformation in human history that laid the foundations for modern agriculture and food systems on which today's global population relies. The development of the economy, including agriculture, from its very beginnings has been based on the use of natural resources as one of the main factors of industrial production. The increasing exploitation of these resources raises questions about how long this process can continue, considering that many of these resources are non renewable. It is estimated that by 2050, the population will reach 9 billion, for whom food must be provided! In addition to not very optimistic economic forecasts, another dark cloud, taking on increasingly negative proportions, looms over nature. Environmental degradation, as an ecological problem, has become not only relevant but also crucial for survival. The primary need to produce more food regardless of the ecological consequences, is responsible for the alarming degradation of the environment. Soil is the most important resource in food production. The increasing exploitation of soil, combined with strong industrialization and urbanization, is leading to a reduction in arable land and the contamination of cultivated land, threatening food production and biodiversity. In some areas, these relationships have reached critical levels. The degradation of agricultural land is adversely affected by many factors, with the most aggressive being: erosion (caused by wind, water, and sun), industrial pollutants, mineral fertilizers, pesticides, lack of windbreaks, illegal waste dumping, traffic impact, etc. Phosphorus fertilizers introduce heavy metals, primarily cadmium, into the soil, which then enters the human body through plants and animals, potentially causing serious diseases. Pesticides, various solvents, and packaging used for storage and transport are very dangerous substances that can negatively impact soil fertility. Additionally, conventional agriculture significantly contributes to greenhouse gas emissions and climate change. Industrial production, including conventional agriculture, operates on a linear economy model, whose principle of "take-make-use-dispose" is one of the main polluters of the environment. Modern science proposes new agricultural production concepts, such as precision, smart, regenerative, and digital agriculture, which contribute to the rational use of natural resources. In a time of unreasonable natural resource consumption, environmental degradation, and global climate change on one hand, and increasing food demand on the other, a new model in agriculture—circular agriculture—represents a promising strategy to support sustainable, restorative, and regenerative agriculture. Circular agriculture, which operates on the principle of "take make-use-return," aims to reduce waste, increase resource efficiency, and improve sustainability. Circular agriculture focuses on optimizing resource use, minimizing waste, and promoting sustainable food production. This paper provides a brief overview of the impact of the four industrial revolutions on the development of agriculture, with a more detailed analysis of the application of achievements from the third and fourth industrial revolutions. The negative impacts of linear agriculture on the environment and the contribution of circular agriculture to the rational use of natural resources, reduction of soil degradation, mitigation of climate change, and production stability are presented. The practices of the circular economy and the barriers to its implementation are also discussed.

Circular Economy and Waste Management in Eastern Europe

Thu, 03 Apr 2025 00:00:00 +0200

Eastern Europe aims to address the EU's circular economy policies, despite socio-economic disparities compared to Western Europe. This work aims to provide regional insight into waste management and circular economy prospects with five relevant country analyses in Eastern Europe part of the EU (Romania, Bulgaria) and non-EU countries, but with candidate status (Ukraine, Rep of Moldova, and Georgia). In the latter cases, these countries face particular geopolitical challenges as additional barriers to advancing toward a circular economy transition. Despite these societal challenges, this work highlights some progress towards the circular economy path in each country. However, the landfill based system prevails but developments of waste management facilities to divert waste from landfills towards recycling, biogas production, and composting supported by source-separation of waste with community involvement is a solid pathway in the near future. These efforts must be supported by authorities (clear regulations, less bureaucracy, waste databases improvement, financial support), business innovation, and the role of environmental NGOs in reducing waste related pollution threats and waste diversion form multi-sectoral sectors (municipalities, agriculture, industry) to upper circular economy activities.

Circular Economy and Its Impact on Pollution Reduction and Environmental Sustainability

Predrag Ilić, Novo Pržulj, Ognjen Erić, Dragana Nešković Markić — Mon, 31 Mar 2025 00:00:00 +0200

Due to increasingly pronounced climate changes and intensified anthropogenic impacts on the environment, on one hand, and global economic growth and exploitation of scarce natural resources, on the other hand, there is a need to find a compromise solution that would ensure long-term, sustainable economic development. One of the optimal possibilities in this context is the development approach of the circular economy. This approach offers a sustainable response to environmental challenges by promoting principles such as waste reduction, reuse, and recycling. The circular economy finds its application in numerous sectors of economic activity, such as industry, agriculture, energy, water resource management, and others. The implementation of the circular economy involves meeting the four basic economic principles (4E): economy, efficiency, effectiveness, and the latest ecological principle. The realization of the basic principles of the circular economy includes various techniques for transforming natural resource management, i.e., maximizing the utility of available materials while minimizing waste production. In this context, technological innovations play a crucial role in enhancing the development of circular economic processes. New technologies are thus a prerequisite for increasing economic efficiency while simultaneously reducing the ecological footprint of the entire social community. Through examples from around the world, the chapter illustrates specific cases where the circular economy has already had a visible impact on reducing local pollution, such as reducing greenhouse gas emissions, managing industrial and agricultural waste, preserving water flows and soil, and protecting air quality. It also considers the challenges and potential solutions in implementing circular strategies in these areas. Furthermore, the role of international cooperation and the development of political frameworks that favor the expansion and adoption of circular initiatives are analyzed. The discussion is based on creating comprehensive strategies that connect different societal actors and create an efficient system of long-term sustainability and socio-economic stability. From all the above, it implies that the circular economy is a key tool for achieving long-term sustainable development, whose active application counteracts climate change and protects the planet for future generations.

Association of Ions in the Soil Solution of Saline Soil’s Landscape

Fri, 04 Apr 2025 00:00:00 +0200

Soil up-to-date study and management are crusial in a circular economy implementation. A soil solution material composition, migration and accumulation dynamics is determined by soil solution chemical equilibrium. The soil solution contains the associated electrically neutral ion pairs СаСО30; CaSO40, MgCO30 and MgSO40 and charged ion pairs CaHCO3+, MgHCO3+, NaCO3−, NaSO4−, CaOH+, and MgOH+. A soil solution chemical equilibrium calculation method is proposed for quantitative assessment of real ion forms in the soil solution of Kastanozem soil complex and Haplic Chernozem. Ions association varies in individual soils and soil layers increasing soil solution salinity and amplifying ions association. In an ionic pair form in soil solution are presented: 11.8–53.8% of Ca2+; 9.4–57.3% of Mg2+; 0.7-11.9% of Na+; 2.2–22.3% of HCO3−, 11.8–62.7% of SO42−. An associated form CO32− ion share is up to 92.7%. The ion association coefficient as a ratio of the ion free form to its analytical content is proposed.A Cd thermodynamic state in Haplic Chernozem in conditions of soil reclamation with phosphogypsum in doses of 10, 20, and 40 t ha−1 was assessed concerning a chemical equilibrium in soil solution. Based on carbonate-calcium equilibrium (CCE) algorithm, computer programs ION–2 and ION–3 were developed to calculate the real equilibrium ion forms in soil solution. The ions association was calculated in an iteration procedure according to the data on a water soil extract analytical ion concentration considering the ion material balance accounting the equilibrium constants linear interpolation, method of ionic pairs, initial concentration preservation law, equilibrium system operating masses law and ion pair concentration constants of dissociation. To characterize a Cd2+ ion binding into associates in soil solution, a coefficient of heavy metal ion’s association kas is proposed. The phosphogypsum application increases a Cd2+ free form soil content by 57.1%. The BGT* methodology was developed to implement a circular economy as a system of the non-standard technical means and technologies for a long-term optimization of the soil geophysical, chemical, water, biological properties and productivity. The long-term field experiment in the Kastanozem soil zone showed that a 20–45 cm layer intra-soil milling methodology provides a rhizosphere uniform development in the whole processed soil profile at a rate of 2.2 roots per cm−2 in 0–20 cm and of 1.7 roots per cm−2 in 20–40 cm. An intra-soil milling machine new active drive design provides five times less traction resistance, 80% increased reliability, and halving energy costs. The BGT* based intra-soil pulse sequential-discrete unmanned system provides soil watering and simultaneous stimulants and/or other substances supply to the soil and a soil solution equilibrium control, a humic substances and polymicrobial biofilms synergy, a high rate soil biological process, a plant phytopathogens resistance and a soil productivity. Intra-soil pulsed sequential-discrete humidification methodology is capable in reducing a plants heavy metals consumption providing a high level control of soil additives and plant stimulants supply. THe BGT* methodology ensures an ecosphere and human health in a circular economy.

Investment of Institutional Investors in Green Bonds - Financing of Sustainable Development and Optimization of the Investment Portfolio

Miloš Grujić — Thu, 03 Apr 2025 00:00:00 +0200

This chapter analyzes institutional investors' investment in green bonds, focusing on sustainable development financing and portfolio optimization. The research aims to explore the risks and potentials of investing in green bonds by analyzing the regulatory framework, previous research, and market trends. Special attention is given to portfolio optimization through integrating bonds issued according to ESG standards using Markowitz's diversification model. Secondary data sources include the Climate Bonds Initiative and the S&P U.S. Municipal Green Bond Index. The results show that the average returns of green municipal bonds are slightly lower compared to conventional municipal bonds in the period from mid-August 2016 to mid-July 2023, but this difference is not statistically significant. This indicates the absence of a green premium or discount for green bonds, aligning with the literature's stance that these bonds do not enjoy particular advantages or penalties in the market compared to conventional bonds. The integration of green bonds into investment portfolios demonstrates a positive impact on returns, risk management, and overall portfolio efficiency, providing significant insights for institutional investors.

Circular Economy and Sustainable Consumption

Thu, 03 Apr 2025 00:00:00 +0200

World is facing severe economic as well as environmental problems due to rapid industrialization, over-use of natural resources for extraction of raw material, and exponential growth of consumption patterns. On the other hand, the finite natural resources, especially in agriculture, are under constant threat of scarcity due to meeting the food/feed/fiber needs of growing population. The linear economic model worsens the situation as it is based on “take-make-dispose” approach and hence does not support recycling, repair, reuse, or remanufacturing of existing products. Circular economy (CE) has emerged as a significant approach in terms of waste reduction, natural resources conservation and sustainable development in many sectors including agriculture. It plays a vital role towards achieving the many of the United Nations’ (UN) sustainable development goals (SDGs) such as poverty eradication (SDG 1), sustainable production and consumption patterns (SDG 12), dealing with the climate change (SDG 13), and protecting the ecosystem (SDG 13, 14). Circular economy offers a sustainable solution to the current non-environment friendly practices through different strategies and principles such as designing out the waste, keeping the products/material in use, regeneration of natural ecosystem, using renewable energy/sources, collaboration and system thinking, innovation and adoption of new technologies, and consumer engagement and behavior change.

Circular Economy in the Function of Sustainable Development of the Social Community

Sanja Mrazovac Kurilić — Thu, 03 Apr 2025 00:00:00 +0200

Demands for constant and as fast as possible economic growth represent a strong pressure on the environment and leave numerous negative consequences on sustainable development, natural resources and the health of the population. Therefore, new ways of economic development, which take into account numerous qualitative indicators, bearing in mind the long-term perspective while achieving economic, ecological and socio-political principles and goals, are necessary. One of the instruments used to achieve the goals of sustainable development is the concept of circular economy, the application of which enables raw materials and energy efficiency, uses more renewable sources and preserves the environment. By applying the concept of circular economy, the social community gains numerous comparative advantages of its economy and increases its efficiency and competitiveness on the international level. The aim of this chapter is to point out to the economic policy makers the need for consistent and faster implementation of the circular economy concept in order to enable sustainable economic development of the country. The circular economy is an instrument for achieving the goals of sustainable development and implies long-term investment in raw materials and energy efficiency, with the reduction of harmful greenhouse gas emissions, the replacement of fossil fuels with renewable energy sources and the production and sale of recycled products, which closes the "product - waste - product" cycle. ", which is recognized within the Sustainable Development Strategy of the Republic of Serbia. Recommendations that were adopted at the leading economic forums in Serbia during the second decade of this century, were transferred to local communities, industry and citizens in order to adopt and apply sustainable production and sustainable consumption models, in accordance with possibilities.

Circular Economy: Advantages and Disadvantages

Dragana Nešković Markić, Predrag Ilić — Mon, 31 Mar 2025 00:00:00 +0200

Although often presented as a revolutionary innovation, the circular economy is not a new idea. It is another reconciliation and compromise between economic and environmental problems expressed by the terms "sustainable growth", "green growth" and "sustainable development". The various strategies aimed at prolonging the use of resources gathered under the banner of the circular economy are not individually new, and if the concept offers any novelty, it is by offering a new framing of these strategies, as well as the possibility of connecting them. The circular economy is built on a heterogeneous collection of scientific and semi-scientific concepts, such as: ecological economy, industrial ecology, cradle-to-cradle design, blue economy, biomimicry, ecological efficiency, cleaner production, etc. Over a hundred definitions of circularity can be found in the literature, which means that the term means different things to different people. This could be because the concept and its application were almost exclusively developed and led by practitioners, i.e. policy makers, companies, business consultants, business associations, business foundations, etc. The result is a perception that the circular economy does not address the ontological and epistemological questions, such as what counts as ethical value, that underlie the complex and interconnected environmental, social and economic issues we face today. It's really easier to say what the circular economy isn't than to say what it is. The circular economy "is not a theory but a new approach to industrial production and consumption." Rather, it is a multiplicity, an umbrella concept that generates enthusiasm because it seemingly provides a new framework capable of solving many problems, but comes under increased scrutiny when attempts at operationalization surface unresolved questions about its definition. The variety of meanings given to the circular economy may explain the appeal of the term, but it also makes it difficult to know what it is really about. The main advantage of the circular economy is the optimal method of production in various industrial sectors: (1) It implies the lowest possible level of waste material that can no longer be recycled, (2) Each activity of the production process produces the smallest possible amount of waste for a specific activity. The key shortcomings of the circular economy are: (1) It is much more expensive to produce a long-lasting product than a larger quantity of equivalent disposable products,(2)- He does not pay attention to people as factors of production.

Microplastics in the Environment and the Circular Economy

Nataša Marić, Dijana Grgas — Thu, 03 Apr 2025 00:00:00 +0200

The use of plastic items and synthetic textile fibers in everyday life is the cause of plastic waste and microplastics (microfibers) in the environment, which is a consequence of the application of a linear economy (material flow). The transition from a linear to a circular economy is considered a cornerstone in ensuring a more sustainable future for the consumption of plastics and textiles, with a focus on keeping materials in the value chain for as long as possible and reducing the pressure of microplastics on the environment. To address this problem, efforts are needed in innovation in design, extended producer responsibility, usage, recycling, and better waste management. In 2024, the EU adopted a series of measures and regulations to reduce microplastics in the environment. Comprehensive measures are needed to prevent and reduce microplastics in the environment, from innovation in technology, design, and production of products to their use. It is necessary to improve waste management, develop sustainable alternatives to plastic, and work on innovation and product design to protect the environment and human health.