Influence of Eco-Innovation and Recycling on Raw Material Consumption; Econometric Approach in the Case of the European Union

Victor Platon (), Florin Pavelescu, Marius Surugiu, Simona Frone, Raluca Mazilescu, Andreea Constantinescu and Florina Popa
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Marius Surugiu: Institute of National Economy, Romanian Academy, 050711 București, Romania
Florina Popa: Institute of National Economy, Romanian Academy, 050711 București, Romania

Sustainability, 2023, vol. 15, issue 5, 1-18

Abstract: The main objective of this paper is to identify the intensity and the sense of the impact that eco-innovation and recycling exert on raw material consumption in the European Union member-states. The basic hypothesis is that eco-innovation and recycling have a significant influence on raw material consumption. The authors consider that, in the long run, by promoting eco-innovation and recycling, countries will minimize their demand and use of raw materials. In the paper, the material footprint per capita has been considered as an adequate indicator to measure the material consumption induced by economic and social activities. The model used has estimated the influence of eco-innovation and recycling on the material footprint per capita using panel data regression by considering the 27 EU countries, for the 2010–2019 time period. The authors found that the most adequate econometric model is the panel model with fixed effects. The respective econometric model validates the hypothesis that eco-innovation and recycling have significant influence on reducing the material footprint per capita and reveals heterogeneity existing among EU countries. At the same time, the model shows the intensity of influence exerted by each regressor. The eco-innovation and recycling have an important role in decreasing the material footprint per capita and should be in the centre of policies aimed at decoupling the economic growth from the raw material consumption.

Keywords: circular material use rate; material footprint; frugal eco-innovation; panel analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:5:p:3996-:d:1076879

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