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Circular Pathways to Sustainable Development: Understanding the Links between Circular Economy Indicators, Economic Growth, Social Well-Being, and Environmental Performance in EU-27

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  • Felix H. Arion

    (Department of Economic Sciences, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Manastur Street, 400372 Cluj-Napoca, Cluj, Romania)

  • Vardan Aleksanyan

    (Faculty of Economics and Management, Yerevan State University, 1 Alex Manoogian Street, Yerevan 0009, Armenia)

  • Davit Markosyan

    (Faculty of Agribusiness and Economics, Armenian National Agrarian University, Yerevan 0009, Armenia
    Faculty of Life Sciences, Humboldt University of Berlin, 6 Unter den Linden, 10117 Berlin, Germany)

  • Iulia Diana Arion

    (Department of Economic Sciences, University of Agricultural Sciences and Veterinary Medicine Cluj-Napoca, 3-5 Manastur Street, 400372 Cluj-Napoca, Cluj, Romania)

Abstract

The transition towards the circular economy (CE) is one of the major priorities of the European Union (EU). By observing its benefits through the prism of sustainable development, this study aims to reveal the intricate relationships between the CE and the economy–society–environment nexus across 27 EU countries during the period from 2012 to 2020. Utilizing an extensive dataset comprising 243 observations drawn from the EUROSTAT database, we employed a panel data analysis. In this research, we quantified the impact of CE indicators on key dependent variables: GDP per capita (economic dimension), mortality, morbidity, and the welfare cost associated with exposure to environment-related risks (social dimension) and greenhouse gas (GHG) emissions in the environmental realm. The findings of our study illuminate the multifaceted connections between circular economy practices and the broader goals of sustainable development within the EU-27 context. The CE indicators aggregated at the EU level not only have a beneficial impact on the economy but also on society and the environment. The analysis reveals that each of the six explanatory variables incorporated into the models exhibits the anticipated relationship with at least one of the outcome variables. This research contributes valuable insights for policymakers, public authorities, and other stakeholders seeking to enhance the circular economy landscape in respective countries.

Suggested Citation

  • Felix H. Arion & Vardan Aleksanyan & Davit Markosyan & Iulia Diana Arion, 2023. "Circular Pathways to Sustainable Development: Understanding the Links between Circular Economy Indicators, Economic Growth, Social Well-Being, and Environmental Performance in EU-27," Sustainability, MDPI, vol. 15(24), pages 1-16, December.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:24:p:16883-:d:1300957
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