THE ROLE OF DIGITALIZATION FOR GREEN GROWTH AND PERSPECTIVES IN THE CIRCULAR ECONOMY

Abstract

Digitalization has significantly increased the amount, accuracy and cost of information. From this aspect, digitalization is of particular importance for the development of the circular economy. Taking into account what economic activities encompass the circular economy, it simply represents a necessity for every society and its well-being.

Digital solutions should help in developing business models based on a circular economy, making the processes in companies more efficient in terms of waste minimization, longer product life and reduction of transaction costs. The need for virtualization of processes and product movement, as well as the increase of efficiency in the reuse of products and resources, will enable growth of business models based on CE. Authors of this paper analyze the importance of the circular economy, its potentials and challenges, underlining the benefits of green agenda, green finance, analysis of the business behavior, thus analyzing the challenges of overcoming the current situation and greater movement towards the CE.