SUSTAINABILITY UNDER PRESSURE: THE CONTRIBUTION OF CIRCULAR ECONOMY TO RESILIENT GROWTH IN THE EU

Abstract

This paper analyzes greenhouse gas emissions from production activities in 27 European Union nations between 2014 and 2023 to determine the extent to which circular economy indicators contribute to global sustainability and resilience. Using a quantitative approach, this research employs a fixed effects panel regression model that incorporates four key indicators: such as the employment rate within circular economy sectors, the extent of circular material use, the per capita generation of municipal waste, and the recycling rate of municipal waste serve as critical components in understanding circularity outcomes.The findings reveal that both persons employed in circular economy sectors and circular material use rate significantly reduce GHG emissions, indicating that labor and material circularity are effective tools for decarbonization. In contrast, generation of municipal waste per capita and recycling rates of municipal waste do not exhibit significant effects, suggesting the need for more integrated and systemic waste management approaches.