The impact of the circular economy on the sustainable development in the EU
DOI:
https://doi.org/10.15611/aoe.2026.1.11Keywords:
circular economy, sustainable development, sustainable development goalsAbstract
Aim: The goal of this research was to investigate the impact of the circular economy on the sustainable development of EU countries.
Methodology: The sample consisted of data from 27 EU countries, including eight selected circular economy indicators as independent variables and the Sustainable Development Goals Index (SDGI) as the dependent variable, covering the period from 2012 to 2021. Panel regression modelling was used to evaluate the impact of selected circular economy indicators on sustainable development.
Results: The findings of this research demonstrate that reducing greenhouse gas emissions, increasing the circular material use rate, raw material consumption, and the recycling rate of municipal waste have a positive impact on the SDGI of EU countries.
Implications and recommendations: CE serves as a tool for a long-term sustainability strategy, ensuring that all the countries, and by understanding its role, policymakers can implement more effective measures that foster economic resilience, environmental protection, and social equity.
Originality/value: Although the circular economy and sustainability are gaining popularity in research, they are often examined separately, with limited discourse connecting the two. The study addressed this gap by investigating the impact of the circular economy on the sustainable development of EU countries, offering new insights into their interrelation.
Downloads
References
Adebayo, T. S., & Alola, A. A. (2023). Drivers of natural gas and renewable energy utilization in the USA: How about household energy efficiency-energy expenditure and retail electricity prices? Energy, 283, 129022. https://doi.org/10.1016/j.energy.2023.129022
Adebayo, T. S., Awosusi, A. A., Kirikkaleli, D., Gbenga, & Akinsola, G. D., & Mwamba, M. N. (2021). Can CO2 emissions and energy consumption determine the economic performance of South Korea? A time series analysis. Environmental Science and Pollution Research International, 28(29), 38969-38984. https://doi.org/10.1007/S11356-021-13498-1
Agaton, C. B., Guno, C. S., Villanueva, R. O., & Villanueva, R. O. (2020). Economic analysis of waste-to-energy investment in the Philippines: A real options approach. Applied Energy, 275, 115265. https://doi.org/10.1016/j.apenergy.2020.115265
Akadiri, S. Saint, Adebayo, T. S., Nakorji, M., Mwakapwa, W., Inusa, E. M., & Izuchukwu, O.-O. (2022). Impacts of globalization and energy consumption on environmental degradation: what is the way forward to achieving environmental sustainability targets in Nigeria? Environmental Science and Pollution Research, 29(40), 60426-60439. https://doi.org/10.1007/s11356-022-20180-7
Akmal, T., & Jamil, F. (2021). Testing the Role of Waste Management and Environmental Quality on Health Indicators Using Structural Equation Modeling in Pakistan. International Journal of Environmental Research and Public Health, 18(8), 4193. https://doi.org/10.3390/ijerph18084193
Bekun, F. V. (2024). Race to carbon neutrality in South Africa: What role does environmental technological innovation play? Applied Energy, 354, 122212. https://doi.org/10.1016/j.apenergy.2023.122212
Bianchi, M., & Cordella, M. (2023). Does the circular economy mitigate the extraction of natural resources? Empirical evidence based on analysis of 28 European economies over the past decade. Ecological Economics, 203, 107607. https://doi.org/10.1016/j.ecolecon.2022.107607
Bontempi, E., Sorrentino, G. P., Zanoletti, A., Alessandri, I., Depero, L. E., & Caneschi, A. (2021). Sustainable Materials and their Contribution to the Sustainable Development Goals (SDGs): A Critical Review Based on an Italian Example. Molecules, 26(5), 1407. https://doi.org/10.3390/MOLECULES26051407
Calvo-Porral, C., & Lévy-Mangin, J. P. (2020). The circular economy business model: Examining consumers’ acceptance of recycled goods. Administrative Sciences, 10(2). https://doi.org/10.3390/ADMSCI10020028
Corvellec, H., Stowell, A. F., & Johansson, N. (2022). Critiques of the circular economy. Journal of Industrial Ecology, 26(2), 421-432. https://doi.org/10.1111/jiec.13187
Dantas, T. E. T., de-Souza, E. D., Destro, I. R., Hammes, G., Rodriguez, C. M. T., & Soares, S. R. (2021). How the combination of Circular Economy and Industry 4.0 can contribute towards achieving the Sustainable Development Goals. Sustainable Production and Consumption, 26, 213-227. https://doi.org/10.1016/j.spc.2020.10.005
De Pascale, A., Arbolino, R., Szopik-Depczyńska, K., Limosani, M., & Ioppolo, G. (2021). A systematic review for measuring circular economy: The 61 indicators. Journal of Cleaner Production, 281, 124942. https://doi.org/10.1016/j.jclepro.2020.124942
Donia, E., Mineo, A. M., & Sgroi, F. (2018). A methodological approach for assessing business investments in renewable resources from a circular economy perspective. Land Use Policy, 76, 823-827. https://doi.org/10.1016/j.landusepol.2018.03.017
Dumée, L. F. (2022). Circular Materials and Circular Design ─ Review on Challenges Towards Sustainable Manufacturing and Recycling. Circular Economy and Sustainability, 2(1), 9-23. https://doi.org/10.1007/s43615-021-00085-2
European Commission. (2019). Future supply of raw materials must not repeat the sustainability problems of the past ─ European Commission. https://joint-research-centre.ec.europa.eu/jrc-news-and-updates/future-supply-raw-materials-must-not-repeat-sustainability-problems-past-2019-10-02_en
European Commission. (2020). A new Circular Economy Action Plan For a cleaner and more competitive Europe.
European Environment Agency. (2015). Closing the loop: An EU action plan for the circular economy (COM/2015/0614 final). EUR-Lex. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52015DC0614
Eurostat. (2023). Circular Economy Monitoring framework [Data set]. https://ec.europa.eu/eurostat/web/circular-economy/monitoring-framework
Forastero, Á. G. (2023). Resources, conservation & recycling advances circular economy in Andalusia: A review of public and non-governmental initiatives. Resources, Conservation & Recycling Advances, 17, 200133. https://doi.org/10.1016/J.RCRADV.2023.200133
Franklin-Johnson, E., Figge, F., & Canning, L. (2016). Resource duration as a managerial indicator for Circular Economy performance. Journal of Cleaner Production, 133, 589-598. https://doi.org/10.1016/J.JCLEPRO.2016.05.023
Geissdoerfer, M., Savaget, P., Bocken, N. M. P., & Hultink, E. J. (2017a). The Circular Economy – A new sustainability paradigm? Journal of Cleaner Production, 143, 757-768. https://doi.org/10.1016/j.jclepro.2016.12.048
Geissdoerfer, M., Savaget, P., Bocken, N. M. P., & Hultink, E. J. (2017b). The Circular Economy – A new sustainability paradigm? Journal of Cleaner Production, 143, 757-768. https://doi.org/10.1016/J.JCLEPRO.2016.12.048
Geng, Y., Zhu, Q., Doberstein, B., & Fujita, T. (2009). Implementing China’s circular economy concept at the regional level: A review of progress in Dalian, China. Waste Management (New York, N.Y.), 29(2), 996-1002. https://doi.org/10.1016/J.WASMAN.2008.06.036
Green, M. L., Espinal, L., Traversa, E., & Amis, E. J. (2012). Materials for sustainable development. MRS Bulletin, 37(4), 303-309. https://doi.org/10.1557/mrs.2012.51
Guillon, O. (2020). Special Section: Institute of Energy and Climate Research at Forschungszentrum Jülich. Advanced Engineering Materials, 22(6). https://doi.org/10.1002/adem.202000286
IEA. (2024). Energy Efficiency ─ Energy System ─ IEA. https://www.iea.org/energy-system/energy-efficiency-and-demand/energy-efficiency
Khiali-Miab, A., Patt, A., & Krütli, P. (2024). Empowering a sustainable urban future: The key role of coordinated settlement development for optimising energy efficiency and socio-economic welfare. Sustainable Cities and Society, 107, 105418. https://doi.org/10.1016/J.SCS.2024.105418
Kristensen, H. S., & Mosgaard, M. A. (2020). A review of micro level indicators for a circular economy – moving away from the three dimensions of sustainability? Journal of Cleaner Production, 243, 118531. https://doi.org/10.1016/J.JCLEPRO.2019.118531
Kristensen, H. S., & Remmen, A. (2019). A framework for sustainable value propositions in product-service systems. Journal of Cleaner Production, 223, 25-35. https://doi.org/10.1016/J.JCLEPRO.2019.03.074
Lieder, M., & Rashid, A. (2016). Towards circular economy implementation: A comprehensive review in the context of the manufacturing industry. Journal of Cleaner Production, 115, 36-51. https://doi.org/10.1016/j.jclepro.2015.12.042
Mancini, L., Vidal-Legaz, B., Vizzarri, M., Wittmer, D., Grassi, G., & Pennington, D. W. (2019). Mapping The Role Of Raw Materials In Sustainable Development Goals. "Publications Office of the European Union". https://doi.org/10.2760/026725
Moraga, G., Huysveld, S., De Meester, S., & Dewulf, J. (2021). Development of circularity indicators based on the in-use occupation of materials. Journal of Cleaner Production, 279, 123889. https://doi.org/10.1016/j.jclepro.2020.123889
Moraga, G., Huysveld, S., Mathieux, F., Blengini, G. A., Alaerts, L., Van Acker, K., de Meester, S., & Dewulf, J. (2019). Circular economy indicators: What do they measure? Resources, Conservation and Recycling, 146, 452-461. https://doi.org/10.1016/j.resconrec.2019.03.045
Mujtaba, M. A., Munir, A., Imran, S., Nasir, M. K., Muhayyuddin, M. G., Javed, A., Mehmood, A., Habila, M. A., Fayaz, H., & Qazi, A. (2024). Evaluating sustainable municipal solid waste management scenarios: A multicriteria decision making approach. Heliyon, 10(4), e25788. https://doi.org/10.1016/j.heliyon.2024.e25788
Murray, A., Skene, K., & Haynes, K. (2017). The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context. Journal of Business Ethics, 140(3), 369-380. https://doi.org/10.1007/s10551-015-2693-2
Nunez, C. (2019). Renewable energy, facts and information. National Geographic. https://www.nationalgeographic.com/environment/article/renewable-energy
Osman, A. I., Fawzy, S., Farghali, M., El-Azazy, M., Elgarahy, A. M., Fahim, R. A., Maksoud, M. I. A. A., Ajlan, A. A., Yousry, M., Saleem, Y., & Rooney, D. W. (2022). Biochar for agronomy, animal farming, anaerobic digestion, composting, water treatment, soil remediation, construction, energy storage, and carbon sequestration: A review. Environmental Chemistry Letters, 20(4), 2385-2485. https://doi.org/10.1007/s10311-022-01424-x
Piscicelli, L. (2023). The sustainability impact of a digital circular economy. Current Opinion in Environmental Sustainability, 61, 101251. https://doi.org/10.1016/j.cosust.2022.101251
Pla-Julián, I., & Guevara, S. (2019). Is the circular economy the key to transitioning towards sustainable development? Challenges from the perspective of care ethics. Futures, 105, 67-77. https://doi.org/10.1016/J.FUTURES.2018.09.001
Rahman, M. M. (2020). Environmental degradation: The role of electricity consumption, economic growth and globalisation. Journal of Environmental Management, 253, 109742. https://doi.org/10.1016/J.JENVMAN.2019.109742
Robaina, M., Murillo, K., Rocha, E., & Villar, J. (2020). Circular economy in plastic waste ─ Efficiency analysis of European countries. Science of The Total Environment, 730, 139038. https://doi.org/10.1016/j.scitotenv.2020.139038
Rosenberg, D., Singla, Dr. V., & Hoover, D. (2021). Burned: Why Waste Incineration Is Harmful. https://www.nrdc.org/bio/daniel-rosenberg/burned-why-waste-incineration-harmful
Rossi, E., Bertassini, A. C., Ferreira, C. dos S., Neves do Amaral, W. A., & Ometto, A. R. (2020). Circular economy indicators for organizations considering sustainability and business models: Plastic, textile and electro-electronic cases. Journal of Cleaner Production, 247. https://doi.org/10.1016/j.jclepro.2019.119137
Roth, J., & Rajagopal, R. (2018). Benchmarking building energy efficiency using quantile regression. Energy, 152, 866-876. https://doi.org/10.1016/j.energy.2018.02.108
Rowse, B. (2022). How Can Recycling Materials Lead to Environmental Sustainability ─ Sustainability Education Academy. https://sustainabilityeducationacademy.com/environmental-sustainability-through-recyling-materials/
Sadhukhan, J., Dugmore, T. I. J., Matharu, A., Martinez-Hernandez, E., Aburto, J., Rahman, P. K. S. M., & Lynch, J. (2020). Perspectives on “game changer” global challenges for a sustainable 21st century: Plant-based diet, unavoidable food waste biorefining, and circular economy. Sustainability (Switzerland), 12(5). https://doi.org/10.3390/su12051976
Santillo, D. (2007). Reclaiming the Definition of Sustainability (7 pp). Environmental Science and Pollution Research ─ International, 14(1), 60-66. https://doi.org/10.1065/espr2007.01.375
Su, C., & Urban, F. (2021). Circular economy for clean energy transitions: A new opportunity under the COVID-19 pandemic. Applied Energy, 289, 116666. https://doi.org/10.1016/j.apenergy.2021.116666
Sverko Grdic, Z., Krstinic Nizic, M., & Rudan, E. (2020). Circular Economy Concept in the Context of Economic Development in EU Countries. Sustainability, 12(7), 3060. https://doi.org/10.3390/su12073060
The World Bank. (2023). Trends in Solid Waste Management. https://datatopics.worldbank.org/what-a-waste/trends_in_solid_waste_management.html
Tomazinakis, S., Valakas, G., Gaki, A., Damigos, D., & Adam, K. (2022). The Importance and Challenges of Sustainable Development for the Raw Materials Sector: The Views of Key Stakeholders in Three ESEE Countries. Sustainability (Switzerland), 14(7). https://doi.org/10.3390/su14073933
Velenturf, A. P. M., & Purnell, P. (2021). Principles for a sustainable circular economy. Sustainable Production and Consumption, 27, 1437-1457. https://doi.org/10.1016/J.SPC.2021.02.018
Venhoeven, L. A., Bolderdijk, J. W., & Steg, L. (2020). Why going green feels good. Journal of Environmental Psychology, 71. https://doi.org/10.1016/j.jenvp.2020.101492
Walker, S., Coleman, N., Hodgson, P., Collins, N., & Brimacombe, L. (2018). Evaluating the Environmental Dimension of Material Efficiency Strategies Relating to the Circular Economy. Sustainability, 10(3), 666. https://doi.org/10.3390/su10030666
Wan, Q., Qian, J., Baghirli, A., & Aghayev, A. (2022). Green finance and carbon reduction: Implications for green recovery. Economic Analysis and Policy, 76, 901-913. https://doi.org/10.1016/j.eap.2022.09.022
Yang, M., Chen, L., Wang, J., Msigwa, G., Osman, A. I., Fawzy, S., Rooney, D. W., & Yap, P. S. (2023). Circular economy strategies for combating climate change and other environmental issues. Environmental Chemistry Letters, 21(1), 55-80. https://doi.org/10.1007/s10311-022-01499-6
Zhang, A., Venkatesh, V. G., Liu, Y., Wan, M., Qu, T., & Huisingh, D. (2019). Barriers to smart waste management for a circular economy in China. Journal of Cleaner Production, 240(August). https://doi.org/10.1016/j.jclepro.2019.118198
Zhao, X., Zeng, B., Zhao, X., Zeng, S., & Jiang, S. (2024). Impact of green finance on green energy efficiency: A pathway to sustainable development in China. Journal of Cleaner Production, 450, 141943. https://doi.org/10.1016/j.jclepro.2024.141943
Downloads
Published
License
Copyright (c) 2026 Ugnius Jakubelskas, Viktorija Skvarciany, Vaiva Vainoriūtė

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Accepted 2025-12-12
Published 2026-05-29





