Advancing Circular Economy for Climate Change Mitigation and Sustainable Development in the Nordic Region

Mohammad Ridwan, Afsana Akther, Bablu Kumar Dhar, Md. Mustaqim Roshid, Tasfia Mahjabin, Shewly Bala and Hemel Hossain

Sustainable Development, 2025, vol. 33, issue S1, 225-244

Abstract: This study examines how circular economy (CE) strategies contribute to climate change mitigation and sustainable development in the Nordic region. Analyzing resource productivity, environmental taxation, and corporate recycling practices from 1995 to 2021, it examines the impact of economic growth, trade openness, urbanization, and regulatory incentives on CE adoption. Using the STIRPAT model and quantile regression, findings highlight that resource productivity and environmental taxation are key drivers of circularity, while trade and urbanization present both opportunities and challenges. A bidirectional relationship between environmental taxation and recycling rates underscores the dynamic role of green fiscal policies. The study also contributes to institutional theory by demonstrating how fiscal mechanisms—such as environmental taxes—not only shape but also are shaped by recycling outcomes, reflecting adaptive and co‐evolving institutional arrangements. The study offers insights for businesses and policymakers, emphasizing the need for integrated governance and sustainable trade to support CE transitions. Implications extend beyond the Nordic context, offering a robust empirical foundation for CE integration in other high‐income and industrializing economies aiming to build low‐carbon, resource‐efficient systems.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/sd.3563

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:sustdv:v:33:y:2025:i:s1:p:225-244

Access Statistics for this article

Sustainable Development is currently edited by Richard Welford

More articles in Sustainable Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().