ASSESSING ECONOMIC POTENTIAL: FOCUS ON THE CIRCULAR ECONOMY

Abstract

The article presents a comprehensive study of theoretical, methodological and applied aspects of assessment. economic potential in the context of the transformation of economic systems to a model of sustainable development and a circular economy. The relevance of the topic is due to the intensification of global environmental challenges, increasing resource constraints, aggravation of socio-economic disparities, as well as the need to form a new paradigm of economic growth, focused not only on quantitative indicators of production, but also on qualitative parameters of development, resource efficiency and long-term sustainability. Economic potential in the article is considered as an integral characteristic of the capabilities of the socio-economic system to ensure reproductive processes, generate added value, adapt to external shocks and implement strategic priorities of sustainable development. Particular attention is paid to the transformation of the content of the concept of economic potential in the context of the transition from the linear model of “take - produce - consume - dispose” to a circular model based on the principles of closed material flows, waste minimization, resource reuse and ecodesign. The aim of the study is to substantiate the conceptual foundations and develop a methodological approach to assessing economic potential taking into account the principles of the circular economy and the goals of sustainable development. The article systematizes modern approaches to interpreting economic potential (resource, functional, systemic, effective), identifies their advantages and limitations in the conditions of the "green" transformation of the economy. It is proven that traditional assessment methods, focused mainly on the volume of resources and production capacities, do not fully reflect the ability of the economic system to achieve sustainable and inclusive growth. An expanded vision of the structure of economic potential is proposed, which includes, along with production, financial, labor and innovation components, also environmental and circular potential. Circular potential is interpreted as the ability of the economic system to ensure a reduction in material and energy intensity of production, form closed cycles of resource use, integrate environmental innovations and stimulate the development of "green" markets. The methodological part of the study is based on a combination of systemic, institutional and interdisciplinary approaches. The article proposes a multi-level model for assessing economic potential, covering macro-, meso- and micro-levels of analysis and providing for the use of integral indices, benchmarking, multi-criteria optimization methods and econometric modeling. The feasibility of using circular economy indicators (level of material reuse, share of secondary raw materials in production, waste generation intensity, carbon intensity of GDP, etc.) as components of the economic potential assessment system is substantiated. The practical significance of the results lies in the possibility of using the proposed approach by state authorities and local governments in the formation of regional development strategies, economic recovery programs in the post-crisis period, as well as by enterprises in the development of corporate strategies for sustainable development and ESG-oriented management. The conclusions obtained can serve as a basis for improving the system for monitoring socio-economic development taking into account the requirements of the European Green Deal and the UN Sustainable Development Goals.