Environmental Factors and Sustainability of the Circular Economy Model at the European Union Level

Abstract

In this paper, we develop a methodology for studying the sustainability of the circular economy model based on environmental factors. In open-end systems, waste is converted back to materials and objects through recycling; hence, a linear economy is transformed into a circular economy. Environmental factors support an argument for the sustainable implementation of a circular economy. As humans are producing and using more and more matter and energy for the economy, the environment and recycling become more and more important factors affecting public health. The aim of this study is to present the economic factors of the sustainable development of a circular economy, based on the findings of the economic literature in the field. Starting with the Mankiw–Romer–Weil model of economic growth based on resource productivity, environmental employment, recycling rate and environmental innovation, three statistical hypotheses were validated through a panel data model with the use of the statistical software EViews 9. An econometric analysis was performed for 27 European Union countries between 2007 and 2016. The results highlight that the extended Mankiw–Romer–Weil model is determined by resource productivity, environmental employment, recycling rate and environmental innovation. Investing in recycling infrastructure and innovative resources is essential for the econometric model presented in our analysis, which is in line with the aims of environmental protection and sustainable economic growth.

Circular Economy Concept in the Context of Economic Development in EU Countries

“…Additionally, a methodology was designed by Trica at al. that enables the evaluation of a circular economy model's sustainability by using Eurostat indicators and measures to verify the effect of environmental factors [61].…”

“…When we investigate a circular economy and economic growth, we can see that author Busu presents the economic factors that are at the basis of the development of a circular economy on the European Union level [60]. Trica et al [61] conducted research about the economic factors of the sustainable development of a circular economy based on the findings of economic literature in the field. Adamo et al investigated the relationship between recycling, GDP, and population [62].…”

Effects of Circular Economy Policies on the Environment and Sustainable Growth: Worldwide Research

“…This exponential increase in the number of articles in the last period analyzed is largely due to the need for research alternatives that improve the current and future situation of the environment. For this reason, in the sample obtained, there are numerous publications that focus on researching the proper management of resources in an effort to work towards a CE model [93][94][95].…”

The Ecological Criteria of Circular Growth and the Rebound Risk of Closed Loops

“…The present paper aimed at finding empirical evidence of the rebound mechanism related to circular measures. Since in the past several years CE has become a top priority of the EU [72,73], the research focused on the countries of the community. It conducted a statistical analysis using the material flow indicators of the EU and sought to find an answer for the following question: are the current European measures adequate to support policies for circular transitions?…”