Circular Economy Approach: The benefits of a new business model for European Firms

Carlo Bellavite Pellegrini (), Laura Pellegrini () and Claudia Cannas ()
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Laura Pellegrini: Dipartimento di Politica Economica, DISCE, & Centro Studi Economia Applicata (CSEA), Università Cattolica del Sacro Cuore
Claudia Cannas: Centro Studi Economia Applicata (CSEA), Università Cattolica del Sacro Cuore

No dipe0018, DISCE - Working Papers del Dipartimento di Politica Economica from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)

Abstract: This study investigates the relationship between Firms’ Performance and the adoption of a Circular Economy (CE) Approach. Considering different “recovery-recycling” models embraced by European countries between 2003 and 2016, the empirical analysis aims to highlight benefits related to CE approach. Specifically, we built a sample of panel data, which involved 60 European listed companies producing several types of packaging (including plastic, glass, cardboard and metal), and raw materials (glass and paper). Over the last decades, the increasing attention to Circular Economy issues in Europe has been followed by an important regulation’s activity aimed to define a common policy on the production and treatment of waste. However, European countries due to their different economic conditions, experienced more or less effectively benefits of CE models which are still under-explored. Our empirical findings confirm previous economic literature (Ferreira N. et al. 2014; CIWM, 2016), pointing out better Perfomances for European companies adopting “Extended Producer Responsability” (ERP) scheme, such as PRO's Competition model. Empirical evidences suggested a positive and highly significant impact on Firms’ Performance as results of more competition among recovery organizations which can be justified by lower costs for companies joining collective recovery schemes.

Keywords: Circular Economy; Firms’ Perfomance; Extended Producer Responsability (ERP); Stock Return (search for similar items in EconPapers)
JEL-codes: C23 Q01 Q56 (search for similar items in EconPapers)
Pages: 40
Date: 2021-07
New Economics Papers: this item is included in nep-cse and nep-eur
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