Search

he end-of-life (EOL) tyre recycling industry in Latvia is encountering economic and sustainability challenges, which require solutions by various stakeholders. Improvement of tyre waste management and recycling is important within the context of sustainability and the new streamlining of circular business models. Its importance is also recognized at the European Union level in relation to the further strategic goals and the European Green Deal. In addition, the tyre recycling industry in Latvia demonstrates a relatively unfavourable financial situation, which is one of the most significant factors hindering the introduction of new circular business models. The aim of this research is to clarify the challenges related to the financial viability of tyre recycling companies adopting the new circular business models. The main research methods are literature review, semistructured in-depth interviews, case studies and financial analyses. There are large stocks of EOL tyres and on average just 50 % of them are recycled. The tyre waste management companies are not motivated to supply EOL tyres to recycling companies. On the other hand, due to various reasons, most of the tyre recycling companies are not working with their maximum production capacity. The research results reveal that the tyre recycling companies mostly run traditional and inefficient business models that require large operating costs and ensure comparatively low profitability. In order to enable more efficient and environmentally friendly tyre recycling process, the companies should implement new, investment intensive technologies. Yet, they face critical issues of liquidity and financial returns. Major conclusions are related to the necessity to develop several business models interlinked within one portfolio thus ensuring the manufacturing of various products with higher added value and quality. This may maximise the profits and improve the financial viability of tyre recycling business models [ABSTRACT FROM AUTHOR]

Circular economy is seen as economy’s development direction expected to lead to a more sustainable development and a harmonious society. It covers at least five different business models, one of which is resource recovery, tackling benefits of industrial symbiosis. In order to achieve a circular economy, there must be a greater understanding of the links between economic activity and waste generation. A consensus exists on the vital role of waste and resource management in achieving transition from a linear model to a circular one where the value of materials and resources are maintained in the supply chain. Waste systematically emerges throughout the supply chain as a result of economic activities and trade. Systemic and transformative change is also reflected in the growing number of case studies analysing innovative solutions based on new systemic thinking like "cradle to cradle" and “industrial symbiosis”. The aim of the research is to analyse existing Circular economy strategies in the European Union, in order to identify main priority areas and objectives. The Authors have also assessed that the three Baltic States currently have not developed circular economy strategies, but nevertheless the authors were able to gather and analyse a range of examples of circular economy companies. In order to achieve this, following methodology has been applied by the authors: critical analysis, case studies, synthesis and comparative analysis. As a result of the research, the authors identify best practices, impact of the municipalities, allowing to identify further necessary steps for the transition to circular economy. [ABSTRACT FROM AUTHOR]

Sharing economy as one of the Circular economy business models has great potential in reducing the need for physical assets whilst at the same time increasing the availability of different services. The Sharing economy does not require giving up the benefits and conveniences of using material assets because of more efficiency, but as a side effect; it also causes an increase in the consumption of goods and services provided. This paper discusses the benefits of the Sharing economy and how problems induced by it can be solved. The aim of the research is to discover drivers and obstacles in developing the Sharing economy and suggest solutions. We use literature study, observations and consumer survey as the research methods. The findings of this research suggest that the main drivers to engage in the Sharing economy are the opportunities to save or earn money. The main obstacles are worries about personal safety and mistreatment by platform members. We suggest building trust between sharing platform members, providing a system of credible reviews about service providers and users, as well as providing more comprehensive information about sharing platforms to enable further development of the Sharing economy. Clear rules should exist for participants in a collaborative economy to separate sharing activities from illegal entrepreneurship and set a fair tax system. The results of the study can help to develop better sharing platforms and for policy makers to work out suitable regulation of the Sharing economy. [ABSTRACT FROM AUTHOR]