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

Does circularity mean environmental sustainability? Novel evidence from European countries

The objective of this research is to evaluate the effects of green economy initiatives (GEI) on environmental sustainability (ES) through empirical means. The degree of green economy efforts is measured using six different metrics: the percentage of circular material consumption (GEI_MA), municipal trash generation per person (GEI_MW), recycling waste performance (GEI_RW), and recycling and secondary raw materials-related patents (GEI_PA). The latter particularly comprises the biowaste (GEI_RB) and e-waste (GEI_RE) recycling shares. Our analysis, which included information gathered from 19 European nations from 2012 to 2019, shows that GEI_MW significantly improves EPI and ECO. On the other hand, there is no meaningful connection between ecological sustainability and GEI_PA. EPI is strongly positively impacted by GEI_MA and EPI and ECO are positively impacted by GEI_RW. Additionally, GEI_RB has a beneficial impact on EPI, HLT, and ECO, but GEI_RE has a considerable favorable impact on both HLT and ECO. These findings highlight how crucial it is for the government to fund R&D for green economy projects in order to achieve ecological sustainability.

The causal link between circular economy and economic growth in EU-25

Actively promoting circular economy (CE) is one of the key means of global sustainable development. The purpose of this study is to analyze the causal relationship between CE and economic growth using data from EU-25 countries from 2010 to 2018. The selected CE indicators included municipal waste recycling rate, CE-related investment, municipal waste generation per capita, circularity rate, and trade in recyclable raw materials. Panel cointegration techniques affirmed the long-term equilibrium relationship between CE indicators and GDP. Panel vector error correction model results confirmed that in terms of short-run causality, an increase in material recycling led to a decrease in waste generation, an increase in waste generation led to an increase in CE-related investment, and economic growth led to circular economy growth, but not vice versa. This implies that encouraging CE-related innovation investments and promoting material recycling to stimulate the secondary raw material market can help achieve zero waste goals. Looking at the long-term causality, the GDP and CE indicators constituted a causal loop, which implies that there is co-evolution between them, although the circular economy is still in its infancy. This co-evolutionary sustainable economic growth can bring welfare to future generations.

Core Elements Affecting the Circularity of Materials

The authors have revised the circularity of materials, which is essential to stimulate circular activity processes. The theoretical part starts with the revision of material circularity under linear and circular models, and answers to the question of how to use modern technologies to ensure the sustainable use of natural resources. Later on, the authors describe the material circularity in the concept of close-loop and open-loop production. Further on, the authors examine the recycling of different waste categories as an essential element necessary for the circularity, give the results of reviewing various sectors and present key elements affecting material circularity. The authors revised the set of variables and formed a correlation matrix and used a dynamic regression model to identify the circular material use rate. The authors suggested a three-level methodology that provided a dynamic regression model that could be applied for forecasting the size of circular material use rate in European Union countries. The empirical research results show that the key elements affecting the circularity of materials are private investments dedicated for recycling, the recycling of electronic waste and other municipal waste.

The dynamic interaction between circular economy and the environment: Evidence on EU countries

This study examined the causal dynamics between circular economy (CE) and carbon dioxide (CO₂) emissions in European Union (EU) countries. The selected CE indicators included the trade in recyclable raw materials (TRM) and the circular material use rate (CMR) in the secondary raw materials area, the generation of municipal waste per capita (GMWp) in the production and consumption area and the recycling rate of municipal waste (RMW) in the area of waste management. The coefficients of the panel cointegration equations showed that for every 1 percentage point increase in RMW, average CO₂ emissions decreased by 0.5%, while for every 1 percentage point increase in GMWp and TRM, the average CO₂ emissions increased by 0.263% and 0.101%, respectively. It also showed that the recycling volumes and recycling rate had a positive but very limited impact on the CMR. The panel vector error correction model result showed that there were long-run bidirectional causalities between CE indicators and carbon emissions, and the TRM had a short-run negative impact on waste generation. However, the short-run impact of CE indicators on carbon emissions was not significant, which may be because the European CE is still in its infancy. The finding suggests that policymakers should adopt multilateral policies such as reducing carbon emissions, improving the efficiency and productivity of resource management and waste recycling, and increasing investment and innovation in the secondary raw materials market to achieve resource decoupling and impact decoupling. The decoupling of these two types is a necessary condition for sustainable development.

Does Circular Economy Contribute to Smart Cities’ Sustainable Development?

The purpose of this research paper is to investigate and identify the factors which can support the development of one characteristic of smart cities, namely, the smart environment. More specifically, the main goal is to measure the extent to which air pollution may be reduced, taking as determinants several circular economy, fiscal, and environmental factors. The Ordinary Least Squares, the Fixed Effects, and Random Effects regression models using balanced panel data were employed, over the 2011–2019 period, for 28 European states. After rigorously studying the literature, 11 indicators with a predictable impact on the exposure to air pollution were kept. According to current analysis, the most effective methods of reducing air pollution are the use of renewable energy, the investments in educating the population to reduce pollution, the proper implementation of the circular economy, and the adoption of the most suitable policies by the European Union governments. Particular attention needs to be paid to factors such as carbon dioxide-generating activities, which are significantly increasing the air pollution. Another strong value is that of providing information on the assessment of ambient air quality, and on the promotion of appropriate policies to achieve two major objectives: well-being, and sustainable cities.

Analyzing Performance in Wholesale Trade Romanian SMEs: Framing Circular Economy Business Scenarios

The study analyzes the performance levels achieved by Romanian wholesaler SMEs from Hunedoara County and to advance some practical courses of action designed to support local entrepreneurs in improving efficiency and in embracing circular economy (CE) practices. We employed cluster and discriminant analyses with a focus on providing an accurate classification of trade SMEs, according to their performance. Three distinct classifications of SMEs resulted in: (i) a class of enterprises displaying high levels of the rates of return, whose business owners exhibited an increased risk appetite and applied investment policies focusing on future development by means of incorporating digital instruments; (ii) a class of SMEs displaying average levels of rates of return, which manage to survive in situations of crisis through maintaining the position previously gained on the market; and (iii) a class of SMEs exhibiting a precarious financial position and employing defensive strategies, with managers who are reluctant to take risks in the innovation processes. Furthermore, we present a cloud computing solution which was tailored for one of the companies from our sample that appeared to be the most likely to carry out the transition from the average SME performance class to the higher class. The main advantages that are brought about by the IT solution in terms of environmental sustainability consist of: improvements in energy efficiency, the decrease in carbon footprints, the lowering of operational costs and the diminishing of the amount of e-waste.

Romania’s Perspectives on the Transition to the Circular Economy in an EU Context

The main objective of the paper is to highlight Romania’s perspectives on the transition process towards the circular economy, in respect with the tendencies registered at the level of the European Union. To this end, our methodology involved the selection of four indicators, each one being viewed as representative for one area of interest specified in the circular economy monitoring framework established by the European Commission, namely: Generation of waste excluding major mineral wastes per domestic material consumption; Recycling rate of municipal waste; Circular material use rate; Gross investment in tangible goods—percentage of gross domestic product. On the basis of data series provided by the Eurostat database, our study employed a quantitative approach, by using the econometric analysis of time series. For each selected indicator, time series-specific approximation and prediction models were constructed; against this background, we were able to reveal accurate forecasts of the analysed variables, with respect to different time horizons. Detailed analysis of the data series resulting from the research proved that on the long run, there are favourable premises for improving Romania’s performance in adopting the circular economic model, on the basis of low values for the indicator “Generation of waste excluding major mineral wastes per domestic material consumption”, of an ascending trend for the indicator ”Circular material use rate” and of maintaining the values of the “Gross investment in tangible goods—percentage of gross domestic product” indicator above the EU-27 average.

An Empirical Study on Website Interactivity Impact among a Student Group, Beneficent for Companies, and Other Users

The connection with customers is a key task of companies, which can be achieved through diverse communication channels, among which one profitable way includes interactive websites. This paper first presents a synthetic review of previous studies on the topic of websites’ interactivity. So far, we observe interactivity through individual models of interactivity. In this paper, four modelling variables are used, which make this paper more complex in the understanding of interactivity. Further, a new research development is exposed, with emphasis on experiment structuring, modelling variables configuration, results achievement, and data analysis and interpretation. It has been ascertained that the model based on four variables creates a broader research framework, enabling an effective analysis of their overall correlations, as well of correlations between each of its components. The applicative part of the research was unrolled with effective participation of a group of 350 students, who were homogeneous in their profiles and activities. Based on the results of an initial test, 240 students were selected and participated in the main test, who all had a particular interest in searching for a job, practice, or training course on the Internet. The research reveals a higher positive impact of interactive websites vs. non-interactive websites, and compares computer use to mobile devices. It also reveals how user perception and behaviour can be positively impacted by making website searches easier, and allowing users to comment on advertisements, share the content on social media, use e-mail marketing, etc.

Circular economy competitiveness evaluation model based on the catastrophe progression method

Circular Economy Model (CEM) holds the promise to provide an economic benefit while not compromising environmental balance, growth, and competitiveness. The paper presents the proposal of Circular Economy Competitiveness Index (CECI) which measure the development of CEM implementation on country level in areas of social behaviours, business operations, resource management, and innovativeness. CECI combines a catastrophe progression method based on catastrophe theory and principial component analysis into composite index. The paper presents analysis of CECI state and dynamics in EU countries. The model supported with Eurostat data allow to classify the EU countries into four groups based on CEMI dynamic as well as analyse EU traditional regions' competitiveness in context of CE implementation. Additionally, correlation to Global Competitiveness Index (GCI) has been analysed. The paper presents a quantitative reference for evaluating CE competitiveness and offers relevant implications for EU countries' policymakers in relation to the factors determining that competitiveness.

Challenging Novelties within the Circular Economy Concept under the Digital Transformation of Society

The study makes, under a new configuration of the circular economy, a cross-country analysis based on the Competitiveness and Innovation Indicators in the E.U., i.e., two sub-criteria: private investments, jobs, and gross value added; and patents related to recycling and secondary raw materials as a proxy for innovation. The analysis proved that investments influence the number of patents, and participate in societal transformation. A further cluster analysis classified countries on the level of innovation. The cluster analysis in SPSS centres on significant potential, weaknesses, impact, and waste management control through blockchain technology. It is found that the factors that influence innovation, according to the Global Competitiveness Report, link the business dynamism and innovation capability with the capacity to sustain resilient ideas, such as competitive intelligence and social entrepreneurship. The discussions aim to prove that the efforts to rethink the circular economy principles contribute to its conceptual and societal transformation role through the implementation of innovative processes, inventive solutions, and blockchain technologies, and their social consequences to solve environmental problems. Once understood and accepted, CE will drive sustainable behaviour.

Untapped Aspects of Innovation and Competition within a European Resilient Circular Economy. A Dual Comparative Study

The paper aims to develop—based on a particular dual comparative analysis that follows the current European concerns—the concepts of competitiveness and innovation as pillars uprighting companies’ resilience, creating ecoinnovative jobs and social inclusion. In their struggle to meet the Circular Economy principles and Green Deal objectives, the countries chosen for analyses—Romania and Serbia—have started implementing added-value blockchain concepts in their societies to thrive in the resilient European market and build empowered societies. According to the World Economic Forum Global Sources of Competitiveness, skills considered in our study refer to businesses’ versatility and societies’ innovation capability. Based on specific data provided by Eurostat, the results showed a correlation between the ecoinnovation index and R&D personnel by sector and helped design a regression model. Hence, we demonstrate that R&D creativity, once stimulated through innovative teaching, blooms, having positive effects at society and market levels as reflected in the ecoinnovation index. Furthermore, cluster analysis within E.U. innovation helped identify strengths and weaknesses, provided new grounds in applying innovation, and led to further recommendations.

Analysis of the Regional Efficiency of European Funds in Spain from the Perspective of Renewable Energy Production: The Regional Dimension

During the 2010–2020 period, the European Union (EU) launched a growth strategy based on three fundamental pillars: smart growth, sustainable growth, and inclusive growth. Aiming to finance the projects related to these growth pillars, the EU used mainly the Rural Development Funds, the Structural Funds, those derived from the R&D Framework Program, the Trans-European Networks, and the European Investment Bank. This research aimed to determine whether the Spanish regions maintain homogeneous efficiency levels by using these resources to improve the levels of environmental quality related to renewable energies. A methodology that is frequently used by researchers in efficiency analyses was chosen, the Data Envelopment Analysis (DEA). The main findings revealed that the efficiency in the use of renewable energies is very uneven among the Spanish regions and these differences are maintained throughout the period analyzed. These results highlighted the need of changes regarding the proposed criteria for allocating European resources to finance the projects presented by each Spanish region.

Cultural Influences on Fruit and Vegetable Food-Wasting Behavior in the European Union

In a context of increased world population and imbalanced access to resources, the concept of food waste has gained increased attention in the past years. The waste of food has a negative impact on the economy, the society and the environment. In order to reduce the quantities of wasted food, it is important to understand the factors and the situations in which food waste occurs. Several studies have shown that food waste happens mostly at the consumer level and that it is determined by a wide range of factors, such as socio-demographic characteristics and consumption patterns. The objective of this paper is to determine the impact of the national culture on the quantity of wasted fruit and vegetables. Based on secondary data, the panel regression analysis was applied for 28 European countries with the purpose of determining the influence of the cultural dimensions as described by Hofstede on the quantities of wasted fruit and vegetables. The results of the research show that the uncertainty avoidance of a culture complemented by the indulgence index influences the quantity of wasted fruit and vegetables, confirming that certain characteristics of the national culture are factors that affect the quantity of wasted food.

Circular Economy and Economic Development in the European Union: A Review and Bibliometric Analysis

Increased changes in the climate and ecosystems call for a sustainable economic development, where economic growth should be compatible with the environment goals. In order to do this, it is urgent to find new ways of life and new production systems that make our ecological footprint compatible with global sustainability. The concept of the circular economy has brought relevant contributions to this problem. The central objective of the study presented here is to highlight the main insights presented through scientific literature about the concept of the circular economy within the European Union. In practice, the intention is to show what has already been done about this topic and what can/should be implemented in the future. To achieve these objectives, 144 articles were considered from the Web of Science (Core Collection) for the topics “circular economy” and “European Union”. These documents were, firstly, analysed through a proper literature review and later explored through bibliometric analysis, considering bibliographic data and the VOSviewer software. As the main findings have revealed, the increased importance of this concept within the European Union is recognized. However, this paper also identifies several challenges in the literature, namely the concentration of the identified publications in certain countries, organizations, and authors.

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

The challenge of transitioning from a linear to a circular economy model is still ongoing and requires the development and application of new knowledge, leading to innovative, technological, and sustainable processes, products, and services. The evolution of global research on this topic from 2004 to 2019 was studied in this work. For this purpose, a bibliometric analysis of 1366 articles was applied, producing results on the scientific productivity of the driving agents that most contribute to this theme. The findings show a growing interest, especially in the last four years, in the study of circular economy (CE) policies on the environment. The main subject area that articles address is environmental science. Five research lines have been identified, which mainly study the efficient management of energy resources and the economic factors that make the CE model possible: Environmental pollution and agricultural activity; waste management to avoid a negative environmental impact; improvement of the environmental impact through ecological products; the product life cycle, and the consequences of climate change. The implementation of CE policies will contribute to making economies less dependent and unprotected and more competitive. Global research has exhibited an upward trend during the period analyzed and has grown exponentially since 2015, coinciding with the publication of the Sustainable Development Goals (SDGs) of the 2030 Agenda.

Circular Economy Innovation and Environmental Sustainability Impact on Economic Growth: An Integrated Model for Sustainable Development

This study examines the link between selected indicators of a circular economy, including essential components of environmental and economic growth. Developed economies are continuously innovating to promote growth and giving governmental support to the producers to move from linear economies to circular ones. Hence, waste materials in industrial systems are recycled or re-used, improving the efficiency of using finite resources with the no-waste approach. The aim of this paper is the following: (1) to identify the main components of a circular economy, which are also supportive of sustainability and development; (2) to check the impact of these variables in the economic growth of European Union countries; (3) to find out if the three components of sustainable development adopted to circular economy (CE) indicators (environmental–social–economic) are significant to economic growth. We used a fixed effect panel data analysis to identify the circular economy’s impact on the economic growth of European countries. Additionally, to support the results of the regression analysis, we employed a second method—generalized methods of moments—computing the Arellano–Bond dynamic panel data estimation method. The model included five independent variables, such as environmental tax rate, a recycling rate of waste, private investment and jobs in a circular economy, patents related to recycling, and trade of recyclable raw materials. The identification of each variable was made based on a deep search through literature. The results of both econometric models showed a strong and positive correlation between a circular economy to economic growth, highlighting the crucial role of sustainability, innovation, and investment in no-waste initiatives to promote wealth.

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

The need has arisen to implement a circular economic model that enables economic growth and prosperity in accordance with environmental protection and sustainable development because of the current unsustainable linear means of production in the economy. The aim of this paper is to determine the application of the circular economy concept in member countries of the European Union from 2008 to 2016. The purpose is to analyse whether economic development measured by GDP (gross domestic product) affects the analysed circular economy variables. Based on the hypotheses set, an econometric model was formed where GDP was identified as an independent variable, while the dependent variables were the production of municipal waste per capita, the recycling rate of municipal waste, the recycling rate of packaging waste by type of packaging, the recycling of bio-waste, and the recycling rate of e-waste. The first part of the statistical analysis conducted using the Stata software package shows the Pearson correlation between the abovestated variables, while the second part explores the univariate regression model. The results point towards the conclusion that the application of the circular economy concept can ensure economic growth and GDP growth while reducing the use of natural resources and ensuring greater environmental protection.

Entrepreneurial Innovation Impact on Recycling Municipal Waste. A Panel Data Analysis at the EU Level

Based on recent findings of the economic literature on the implications of entrepreneurial innovation for recycling municipal waste, this paper aims to examine the main factors of recycling municipal waste at the European Union (EU) level. In this study, the authors developed a linear regression model to analyze the relationship between business expenditure on research and development (R&D), private investments, gross domestic product (GDP) expenditures on R&D, resource productivity, and environmental taxes on the recycling rate of municipal waste (RRMW). In our analyses, we used data from the Statistical Office of the European Union (EUROSTAT) and five statistical hypotheses were validated through a multiple regression model with panel data using the statistical software EViews 11. The study was conducted in 27 European Union countries between 2010 and 2017. Our results indicate that business expenditure on R&D, private investments, GDP expenditures on R&D, and resource productivity have a direct and significant impact on the RRMW, while environmental taxes have a significant and inverse impact on the RRMW. These findings underline that public policies should be focused on increasing the use of private and public investments on R&D for recycling municipal waste.

Dimensional Stability and Process Capability of an Industrial Component Injected with Recycled Polypropylene

The usage of recycled polymers for industrial purposes arises as one of the most promising methods of reducing environmental impact and costs associated with scrapping parts. This paper presents a systematic study of the dimensional stability of a raw and 100% recycled polypropylene subjected to realistic environmental conditions occurring along its working life. The component studied is an internal part of an induction hob assembly. Industrial samples manufactured with both materials, in the same mold, and in the same injection machine, are subjected to ejection conditions, storage conditions (50 °C), and extreme performance conditions (80 °C). Induced dimensional changes are registered and analyzed using a coordinate measuring machine, and a tactile sensing probe. To verify the process capability of the samples manufacturing, C_p and C_pk values are calculated to evaluate the suitability of the recycled material as an alternative. Results conclude that, although the use of recycled material implies slight differences in terms of dimensional stability due to the changes induced in the polymer structure, these differences are not significant enough to affect the injection process capability. Therefore, recycling arises as one effective method to reduce both overruns associated with the consumption of raw polypropylene material and its environmental impact.

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

The implementation practices of the circular economy (CE) put a strong emphasis on preventing material losses in economic processes. The general interpretation of the concept focuses on closing technological and biological cycles by reintegrating end-of-life products into production and consumption systems. Thus, “closed loops” have become a trademark of circular transition. However, this limited perception fails to cover the essence of the CE. Besides closure, the utility of material loops can be prolonged, and a conscious consumer attitude may even prevent the creation of unnecessary material flows. This paper aims at proving that the preference of closed loops would result in deadweight losses in the long run. The conducted analysis ranks EU member states according to the most anticipated material flow indicators. Then, the study presents a new methodology to measure circular efficiency based on the available ecological capacity of the countries. The outcomes show that the poorly performing actors are in fact not far from a sustainable operation. Meanwhile, the countries with the most efficient material flow values present the widest development gap to reach the ideal level of circularity.