Institutional support for the implementation of the circular economy in agribusiness

Abstract

The aim of the study was to identify the key institutional support mechanisms necessary for the implementation of the circular economy in the agricultural sector of Ukraine, with a focus on adapting international best practices to local conditions. The study used content analysis of legislative acts, strategic documents and scientific sources, comparative analysis of institutional support models in the European Union, the United States, Australia and China, as well as statistical analysis of the current state of implementation of circular practices in Ukraine. The results of the study showed that successful implementation of the circular economy requires improvement of the regulatory framework, including the creation of tax incentives and government grant programmes for farmers, development of processing infrastructure, including regional agricultural waste processing centres, as well as intensification of educational initiatives to raise awareness of the benefits of circular approaches among farmers. The comparative analysis confirmed that the most effective support models are based on the synergy of government programmes, private investment and international assistance. The regional analysis revealed that, despite the negative impact of the war, the southern region of Ukraine retains significant potential for development due to its agricultural specialization. Innovations such as biogas plants and precision farming have been found to be able to meet up to 60% of farm energy needs and reduce water and fertilizer costs by up to 40%. However, the implementation of these approaches was constrained by limited funding and insufficient infrastructure. The study results highlighted the importance of a comprehensive approach to implementing circular economy principles, including legislative, financial and educational measures aimed at creating conditions for the economic, environmental and social sustainability of Ukraine’s agricultural sector.

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