Circular Economies and Sectoral Green Productivity in the European Union

Gonzalo Hernández Soto

Business Strategy and the Environment, 2025, vol. 34, issue 3, 2765-2781

Abstract: In this study, we explore the impacts of the waste recycling ratio as a proxy for circular economies on sectoral productivity in the European Union between 2000 and 2021. We present a productivity model that contextualizes the industry's transition to green economies, namely, the green productivity model, in which we adapt neoclassical productivity models by considering energy intensity and the development of green technologies. After estimating the results using FGLS and PCSE, we understand that a higher availability of secondary raw materials contributes to the European productivity functions in different industries, but this effect is limited as exponential increases in these materials reduce productivity. To ensure the efficiency of policies aimed at consolidating circular economies, we propose policy recommendations that leverage economies of scale and scope to improve the efficiency of European industries while contributing to the circular cycle of their own productivity externalities.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/bse.4132

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:bla:bstrat:v:34:y:2025:i:3:p:2765-2781

Ordering information: This journal article can be ordered from
http://onlinelibrary ... 1002/(ISSN)1099-0836

Access Statistics for this article

Business Strategy and the Environment is currently edited by Richard Welford

More articles in Business Strategy and the Environment from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().