Abstract Olive business is one of the pillars of the Palestinian agricultural economy, but its enterprise is mostly in the linear production system, which leads to inefficient utilization of resources, more wastes, and environmental destruction. This cross-sectional paper will focus on how economic growth in the Palestinian olive industry can be improved by applying the principles of green and circular economics by restructuring and increasing the productivity of the agricultural value chain of the industry. The quantitative descriptive-analytical methodology was used, which relied on data gathered using a structured questionnaire, which was given to 100 olive farmers, cooperatives, and processors in the key production areas of Jenin, Nablus, Tulkarm, Ramallah, and Hebron. The results of the analysis indicate that there is a positive relationship between agricultural extension services, the use of principles of the circular economy, and economic and environmental outcomes that are positive and statistically significant (r = 0.612, p < 0.01). The results have shown that waste valorization, enhanced resource efficiency, and implementation of sustainable business models significantly increase farm profitability and environmental performance. The use of olive pomace, mill wastewater, and pruning residues as bioenergy, biofertilizer and biochar fuels, were also identified to help in the diversification of income, creation of employment opportunities as well as the sustainability of the rural regions. The large-scale adoption of circular practices has been limited by insufficient access to green technologies, a lack of formal training of the farmers, and the lack of institutional support, despite the mentioned advantages. The results offer an empirical basis to the creation of analytical tools to help policymakers and stakeholders in Palestine to stimulate an inclusive economic development, environmental control and climate resilience in the agricultural sector.
Haroon Alataweneh (Mon,) studied this question.