Energy efficiency as a driver of the circular economy and carbon neutrality in selected countries of Southern Europe: a soft computing approach

Abstract

Background The main goal of the paper is to define the level of energy efficiency in the economies of selected countries in the Balkan region that have opted for the EU Green Deal, a circular economy, and a transition to carbon neutrality. Energy efficiency, as a determinant of carbon neutrality, was selected as an indicator for analysis because it records particularly unfavorable indicators in the region under observation. The research was carried out on a sample of seven Balkan countries and their surrounding areas. An initial qualitative analysis was followed by a quantitative analysis based on a combination of statistical methods and soft computing. Six indicators were selected for the analysis covering a period of 30 years (1990–2020). Results A significant obstacle to the green transition and the region’s transition to a circular economy and carbon neutrality is energy efficiency and energy related pollution—the reliance of most countries on coal-fired thermal power plants for electricity generation. The research results showed the following: (a) the degree of economic development and membership in the European Union are not significantly related to the level of energy efficiency; (b) most of the sampled countries are in the initial stages of introducing activities to achieve carbon neutrality; and (c) only Slovenia has documented consistent indicators and evident advancements in its efforts to achieve carbon neutrality. Based on the research findings, proposals for improvements were made in the direction of policymaking and in a methodological sense. Conclusions The implementation of circularity and carbon neutrality as a long-term goal of the European Union is not necessarily related to the level of economic development, nor can its trajectory be exclusively ascertained by means of data processing and monitoring. A more precise understanding of a carbon-neutral future can be achieved through the incorporation of qualitative data to a greater extent, a realistic evaluation of historical facts and their repercussions, as well as projections of the effects that reality and global developments after 2022 will have on each country.