Study On Firm's Behaviors In The Model Of Circular Economy

Circular economy, as a latest mode of economy developing, will be impacted by flocks of factors , but among which the most essential element is the micro-body ——firms. This paper, comprehensively utilizing the theories and methods of circular economy, industrial organization and gaming theory, examines a series of important problems, including the theories and mechanisms of circular economy's formation, and brings forward some relevant countermeasures and suggestions, allowing for the situation of our country. The main contents and conclusions as the follows: ⑴The background and the theoretic support .This paper formulates the necessity and emergency of the expansion of circular economy, emphasizes that circular economy is the inevitable strategy to realize our nation's sustainable development. Furthermore, it summarizes the relevant researches, points out their faults, and explains the importance and significance of the study on firm's behaviors in the mode of circular economy according to some theories and experiments. ⑵The definition of the firm's behaviors in the mode of circular economy. This part explores the contents and characters of firm's behaviors in circular economy,involving firm's objectives, behavior principles, and running ideas, which establishes the foundation of the theoretic analysis in this paper. ⑶The theoretic analysis of the firm's behavior in the mode of circular economy. Actually, it can be seen that the status are incompatible with those in circular economy ,such as the recognizition of resources'valuation, behavior objectives and so forth. Firm's profit-hungry behabiors are the most underlying elemants bringing the result. Accordingly, the author supposes that only if firms converted from the "economic man"aiming merely the profits into the "economic and ecological man"integrating with ecological benefits, circular economy would have a sustainable and healthy development. And then, this paper proves the viewpoint by gaming analysis, also describs the behaviors performance from the aspects involving the relationship among firms, economic benefits and environmental benefits. ⑷The constitution of mechanism of the firm's behavior in the mode of circular economy. Whereas the development of industrial economy has its inertia, firms have difficulties in the conversion to "economic and ecological men"on their own in short terms. Hence it needs some external impetus coming from government and public. The ecotypic conversion of firm's behaviors is a complicated systemic engineering. This paper analyses the obstacles to firm's participation in circular economy, indicates the general idea during the construction of the mechanism, and designs the mechanism to promote behaviors'conversion, which contains law restriction, public supervision, information transmission, technology support, green consumption and so on. ⑸The government's role on regulating firm's behaviors in the mode of circular economy. This paper formulates the necessity and importance of government's participation in the formation of circular economy. Allowing for the particularity of our nation, it demonstrates that government should play a leading role in the development of circular economy, and then puts forward some countermeasures.