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Sustainability of Circular Economy Indicators and Their Impact on Economic Growth of the European Union

Author

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  • Mihail Busu

    (Faculty of Business Administration in Foreign Languages, Bucharest University of Economics Studies, 6 Piata Romana, 010374 Bucharest, Romania)

  • Carmen Lenuta Trica

    (Faculty of Agrifood and Environmental Economics, Bucharest University of Economic Studies, 6 Piata Romana, 1st district, 010374 Bucharest, Romania)

Abstract

In this paper, we develop a methodology for studying the sustainability of the circular economy model, based on environmental indicators, and its impact on European Union (EU) economic growth. In open-end systems, waste is converted back to materials and objects through recycling; hence, a linear economy is transformed into a circular economy (CE). Environmental factors support the argument for the sustainable implementation of a circular economy. The main objective of this paper is to analyze the sustainability of the CE indicators and to elaborate a multilinear regression model with panel data for determining the dependency of the main CE factors on EU economic growth. Starting with the model of economic growth based on circular material use rate, recycling rate of municipal waste (RRMW), trade in recycling materials, labor productivity, environmental taxes, and resource productivity as independent variables, six statistical hypotheses were validated through a multiple regression model with the use of the statistical software EViews 11. The research study was conducted for 27 EU countries, and the data was collected from the European Union Statistical Office (EUROSTAT), during the time frame 2010 to 2017. Based on econometric modeling, the paper highlights that circular economy generates sustainable economic growth across the EU.

Suggested Citation

  • Mihail Busu & Carmen Lenuta Trica, 2019. "Sustainability of Circular Economy Indicators and Their Impact on Economic Growth of the European Union," Sustainability, MDPI, vol. 11(19), pages 1-13, October.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:19:p:5481-:d:273252
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    References listed on IDEAS

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    2. Gheorghița Dincă & Ana-Angela Milan & Maria Letiția Andronic & Anna-Maria Pasztori & Dragoș Dincă, 2022. "Does Circular Economy Contribute to Smart Cities’ Sustainable Development?," IJERPH, MDPI, vol. 19(13), pages 1-27, June.
    3. Mihail Busu, 2020. "A Market Concentration Analysis of the Biomass Sector in Romania," Resources, MDPI, vol. 9(6), pages 1-10, May.
    4. Cristian Teodor & Carmen Lenuta Trica & Raluca Ignat & Raluca-Mihaela Dracea, 2020. "Good Practices of Efficient Packaging Waste Management," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(55), pages 937-937, August.
    5. Peter Tauš & Zuzana Šimková & Michal Cehlár & Ivana Krajňáková & Július Drozda, 2023. "Fulfillment of EU Goals in the Field of Waste Management through Energy Recovery from Waste," Energies, MDPI, vol. 16(4), pages 1-18, February.
    6. Adriano Cordisco & Riccardo Melloni & Lucia Botti, 2022. "Sustainable Circular Economy for the Integration of Disadvantaged People: A Preliminary Study on the Reuse of Lithium-Ion Batteries," Sustainability, MDPI, vol. 14(13), pages 1-15, July.
    7. Codruța Cornelia Dura & Ana Maria Mihaela Iordache & Alexandru Ionescu & Claudia Isac & Teodora Odett Breaz, 2022. "Analyzing Performance in Wholesale Trade Romanian SMEs: Framing Circular Economy Business Scenarios," Sustainability, MDPI, vol. 14(9), pages 1-34, May.
    8. Muhammad Azizuddin & Ahm Shamsuzzoha & Sujan Piya, 2021. "Influence of Circular Economy Phenomenon to Fulfil Global Sustainable Development Goal: Perspective from Bangladesh," Sustainability, MDPI, vol. 13(20), pages 1-16, October.
    9. Gyedu, Samuel & Heng, Tang & Ntarmah, Albert Henry & He, Yingqi & Frimppong, Emmanuel, 2021. "The impact of innovation on economic growth among G7 and BRICS countries: A GMM style panel vector autoregressive approach," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    10. Ajayi, V. & Pollitt, M .G., 2022. "Green growth and net zero policy in the UK: some conceptual and measurement issues," Cambridge Working Papers in Economics 2255, Faculty of Economics, University of Cambridge.
    11. Hondroyiannis, G. & Sardianou, E. & Nikou, V. & Evangelinos, K. & Nikolaou, I., 2024. "Circular economy and macroeconomic performance: Evidence across 28 European countries," Ecological Economics, Elsevier, vol. 215(C).
    12. Paul Mugambi & Miguel Blanco & Daniel Ogachi & Marcos Ferasso & Lydia Bares, 2021. "Analysis of the Regional Efficiency of European Funds in Spain from the Perspective of Renewable Energy Production: The Regional Dimension," IJERPH, MDPI, vol. 18(9), pages 1-16, April.
    13. Joanicjusz Nazarko & Ewa Chodakowska & Łukasz Nazarko, 2022. "Evaluating the Transition of the European Union Member States towards a Circular Economy," Energies, MDPI, vol. 15(11), pages 1-24, May.
    14. Armand Kasztelan, 2020. "How Circular Are the European Economies? A Taxonomic Analysis Based on the INEC (Index of National Economies’ Circularity)," Sustainability, MDPI, vol. 12(18), pages 1-11, September.
    15. Ewa Mazur-Wierzbicka, 2021. "Towards Circular Economy—A Comparative Analysis of the Countries of the European Union," Resources, MDPI, vol. 10(5), pages 1-25, May.
    16. G. Perkoulidis & A. Malamakis & G. Banias & N. Moussiopoulos, 2022. "Development of a Methodological Framework for the Evaluation of the Material and Energy Recovery Potential of Municipal Solid Waste Management: Implementation in Five Greek Regions," Circular Economy and Sustainability, Springer, vol. 2(1), pages 313-326, March.
    17. Mihail Busu, 2020. "Analyzing the Impact of the Renewable Energy Sources on Economic Growth at the EU Level Using an ARDL Model," Mathematics, MDPI, vol. 8(8), pages 1-18, August.

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