An Analysis of the Performance of Circular Economy under the Impact of Digitalisation and Decarbonisation at EU27 Level
An Analysis of the Performance of Circular Economy under the Impact of Digitalisation and Decarbonisation at EU27 Level

Summary/Abstract: Although the European Green Deal (EGD) highlights that the technological transition is instrumental in achieving a circular economy and regional prosperity, the European Union (EU27) and the national policies of its Member States are not fully aligned to achieve this dual transition. The digitalisation’s potential to attain the objectives of sustainable development and circular economy is huge and requires further exploration, both globally and at EU27 level. However, the risks and challenges are commensurate and need special attention and synergies at the decision-making level. Thus, in the first phase, it is important to understand how the digitalisation and decarbonisation of the economy can contribute to the circularity of the economy. The purpose of our research is to assess the circular economy’s performance under the impact of the digitalisation and decarbonisation of European economies. We analyse the latter’s contribution to increasing circular processes and ensuring economic sustainability. The methodology used is quantitative, econometric, of a linear regression type, based on panel data for EU countries. On the one hand, the results show that digitalisation has a positive and significant impact on the circular economy, while decarbonisation has a positive but less significant effect on it, by decoupling economic growth from resource use. On the other hand, the development of the digital technology sector is still a major consumer of resources, and investments in research do not fully meet the objectives of the circular economy.

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