Evaluating the Impact of Material Efficiency in the Circular Economy on Economic Growth in European Countries
Evaluating the Impact of Material Efficiency in the Circular Economy on Economic Growth in European Countries

Author(s): Andrija Popović, Andreja Todorović, Žarko Rađenović
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Circular economy; Material efficiency; Economic growth
Summary/Abstract: This research evaluates the impact of material efficiency within the circular economy (CE) framework on economic growth in European countries from 2012 to 2021. Focusing on key indicators - Recycling Rate of Municipal Waste, Resource Productivity, and Domestic Material Consumption per Capita - the research employs panel data analysis and Principal Component Analysis (PCA). The findings reveal that Resource Productivity significantly contributes to GDP per capita growth, particularly in EU27 countries, underscoring the importance of efficient resource use in driving sustainable economic development. Conversely, Resource Productivity and Domestic Material Consumption per capita exhibit a more complex relationship with economic growth, lacking statistical significance in the main models. The research highlights the necessity for policymakers to prioritize resource efficiency strategies to foster economic prosperity while advancing CE practices. These insights are crucial for designing targeted policies that balance material efficiency with broader economic objectives across diverse European contexts.

• Details
• Contents