CIRCULAR DEVELOPMENT: TRANSFORMATION OF ECONOMIC EFFICIENCY OF CONSTRUCTION DEVELOPMENT IN UKRAINE IN THE CONDITIONS OF POST-WAR RECOVERY AND EU INTEGRATION

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Provides a mathematical model (LCC+) and CREI indicator for circular construction project evaluation, useful for further empirical work.

🏢実務担当者:Offers guidance on financing mechanisms and efficiency metrics for reconstruction projects with circular economy principles.

🏛政策担当者:Highlights the role of EU integration as a driver for regulatory transformation in construction waste management and carbon pricing.

The article substantiates the concept of Circular Development (CD) as a new economic model of construction development in Ukraine, which advances the author's earlier theoretical framework concerning recycling as a system-forming factor of the circular economy in the construction sector. Whereas the preceding study established the methodological foundation for transitioning from a linear to a multi-cycle development model and identified key economic and managerial predictors of this transition, the present article extends these ideas within a fundamentally new context: large-scale wartime destruction, unprecedented construction and demolition waste flows, and accelerated European integration requirements. The paper demonstrates that the traditional linear development model – oriented toward creating new assets from primary materials – is both economically inefficient and practically constrained under post-war recovery conditions. A new definition of the developer enterprise is proposed: an economic entity that manages the complete investment cycle of a real estate object, from preproject material certification and construction financing to end-of-life strategy implementation with maximisation of material return value. An extended mathematical model LCC+ is developed for evaluating the efficiency of CD projects, integrating capital expenditures, discounted operational costs, a risk component accounting for war risk and supply chain disruptions, a carbon component based on embodied carbon valuation, material recovery value, and a regulatory compliance premium reflecting the financial advantages of EU standards adherence. A new integral performance indicator – the Circular Reconstruction Efficiency Index (CREI) – is introduced to enable comparative assessment of reconstruction projects. The article structures construction financing mechanisms within the CD model across three instrument groups: EU and international financial institution instruments, private green finance, and construction and demolition waste monetisation. The EU integration dimension is analysed as a strategic investment process requiring technical, financial, and regulatory transformation of developer activity. Five research hypotheses are formulated for further empirical verification.

• semanticscholar https://doi.org/10.32782/easterneurope.50-5first seen 2026-06-29 07:43:29