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

Carmen Lenuta Trica, Cristian Silviu Banacu and Mihail Busu ()
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Carmen Lenuta Trica: Faculty of Agrifood and Environmental Economics, The Bucharest University of Economic Studies, 6 Piata Romana, 1st district, 010374 Bucharest, Romania
Cristian Silviu Banacu: Faculty of Management, The Bucharest University of Economic Studies, 6 Piata Romana, 1st district, 010374 Bucharest, Romania

Sustainability, 2019, vol. 11, issue 4, 1-16

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.

Keywords: circular economy; sustainability; recycling; econometric model; environmental factors; quantitative analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:11:y:2019:i:4:p:1114-:d:207688

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