Government Intervention In The Development Of The Circular Economy

This article presents the way in which the state can intervene to facilitate the transition to a circular economic model, by creating a framework of government interventions, which must operate without distortion, designed to maintain or improve the intrinsic value of materials, along production systems and value chains and at the same time minimize the level of inflows of virgin materials. Ensuring the conditions can have a fair competition for circular models that can ensure by eliminating subsidies can grant linear behaviors and to establish integrity for risks and external to be able to associate production and to be able to use linear for the material. Such a framework facilitates and accelerates the allocation of capital for investigating and activating traffic, stimulates private sector funding and allows for an optimal pension for public finance. The analysis of institutional conditions that facilitate the transition to a circular economy by stimulating investment to improve natural capital and social equity includes environmental taxes, trade permits and the marketable certificate system, which focus on the economic role of government intervention, with a particular focus on government interventions.