How Does the Circular Economy Applied in the European Union Support Sustainable Economic Development?

Claudia Diana Sabău-Popa (), Alexandra Maria Bele, Anca Dodescu and Marcel Ioan Boloș
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Claudia Diana Sabău-Popa: Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania
Alexandra Maria Bele: Doctoral School of Economic Sciences, University of Oradea, 410087 Oradea, Romania
Marcel Ioan Boloș: Faculty of Economic Sciences, University of Oradea, 410087 Oradea, Romania

Sustainability, 2022, vol. 14, issue 16, 1-16

Abstract: This research paper aims to find a causal relationship between the circular economy and sustainable economic development. The implementation of the circular economy in the European Union requires, on the one hand, smart regulation and on the other hand, the long-term involvement of all actors in society at all levels—member states, regions, cities, businesses, citizens—and their ability to develop cooperation networks and suitable collaboration and exchange patterns. Moreover, the circular economy is based on business models for reusing, recycling and recovering materials in the production and consumption of goods. This research establishes correlations between circular economy performance measurement indicators and sustainable economic development using panel analysis. Statistically significant correlations were noted between GDP per capita and three independent variables, mainly due to the high R-squared coefficient. This research’s innovation contribution is related to the selection and combination of circular economy indicators. Finally, the results confirmed that an increase in the recycling rate of municipal waste and a decrease in environmental tax revenues and environmental protection expenditures led to an increase in GDP per capita and sustainable economic development.

Keywords: circular economy; sustainable economic development; GDP per capita; recycle; municipal waste; environmental tax; environmental protection (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:16:p:9932-:d:885696

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