Advantages and disadvantages of a closed-loop economy: the path to environmentally friendly production

The relevance of the study is related to the development of the circular economy in the national economies of many countries of the world, where it is receiving increasing attention. Circular technological and economic models can be considered promising areas of strategic transformation for companies that contrast themselves with traditional business models of an open economic system based on extensive growth. The concept of a circular economy appeared in order to create closed-loop production and consumption models that aim to increase resource efficiency, use waste management approaches and achieve stable coexistence between the economy, the environment and the population. The purpose of the study is to analyze relevant scientific sources and statistical information to determine the advantages and disadvantages of closed-loop economic models at the current stage of scientific and technological progress. The research methodology is based on the use of general scientific research methods such as analysis, generalization, abstraction, synthesis. The results of the study. The article evaluates the current situation of the development of the circular economy in the world, identifies factors that emphasize the extensiveness of the current economy. The main advantages, disadvantages and barriers of the circular economy are presented, classified into four aspects: environmental, economic, technological and social. It is established that from the point of view of the economic development of the branches of the national economy, the circular economy will create new markets and business opportunities in the sectors of recycling and servicing of goods. It is also assumed that circular business models can increase the competitiveness of companies through innovation and optimization of production processes. In addition, circular economic systems will contribute to the development of innovative technologies and processing methods aimed at more efficient use of raw materials and materials.