Why does it matter?
The project is designed to assess macroeconomic effects in a small open economy country, transitioning from a linear economic model to a circular economy. Despite the EU’s initiatives to implement the circular economy concept in practice, the economic system (which is characteristic of the Lithuanian economy) is characterized by a linear transformation of natural resources into production, consumption and waste. There is a lack of greater productivity of natural resources, longer product life, reuse, use of used product parts in production, and waste recycling. The scientific literature lacks a detailed, complex analysis of the investigated phenomenon in a small open economy country, the impact of the transition from a linear to a circular economy on the dynamics of the economy of cities, regions and the country, public welfare, and the creation of new jobs. In addition, it is important to ensure the integrity of the implementation of the CE concept with strategic documents of different levels. Before implementing in practice and starting to use public financial resources, a deep methodological understanding of the transformation of the economic system from linear to CE is important.
The goal of the project is to create a new dynamic stochastic general equilibrium model that evaluates the functioning of the circular economy in the case of a small economy country, combining the micro, meso and macro levels and to assess the compatibility and integrity of strategic documents, which would enable the transition to a higher level of implementation of the circular economy in Lithuania.
Period of project implementation: 2019-06-01 – 2021-12-31 (for more information see here).