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Evaluation of circular economy indicators seeking sustainable development goals

Author

Listed:
  • Ugnius Jakubelskas

    (Vilnius Gediminas Technical University)

  • Viktorija Skvarciany

    (Vilnius Gediminas Technical University)

Abstract

To tackle climate change, resource scarcity, and environmental degradation, the circular economy (CE) is gaining popularity as a key tool for promoting sustainability by harmonising societal, economic, and environmental needs and contributing to global sustainable development goals. This research aims at determining which circular economy indicators most significantly impact the sustainable development goals (SDGs) in European Union (EU) countries. Panel regression analysis was used to determine which circular economy indicators most significantly impact the Sustainable development goals index across the EU countries. In this study, five separate panel regression models were developed, each representing a pillar of the European Union’s CE framework: production and consumption, waste management, secondary raw materials, competitiveness and innovation, global sustainability and resilience. Based on the results, CE indicators have varying effects: material and consumption footprint, generation of municipal and packaging waste per capita, the recycling rate of municipal waste, circular material use rate, trade in recyclable raw materials as well as persons employed in the circular economy sector and material import dependency are associated with the improvement of the SDG index, while recycling rate of WEEE (waste of electrical and electronic equipment) and greenhouse gas emissions are associated with the decrease of the SDG index. These outcomes are often linked to economic growth and the expansion of green technologies, which are essential for a more sustainable future. This research explains the linkage between the circular economy and its contribution to achieving the SDGs in EU countries. It enables policymakers, businesses, and other stakeholders to recognise the significance of CE practices in attaining sustainable development. The research outcomes can guide the development of CE policies, prioritising impactful areas for countries dedicated to achieving sustainable development through CE practices.

Suggested Citation

  • Ugnius Jakubelskas & Viktorija Skvarciany, 2025. "Evaluation of circular economy indicators seeking sustainable development goals," E&M Economics and Management, Technical University of Liberec, Faculty of Economics, vol. 28(3), pages 17-31, September.
    • Handle: RePEc:bbl:journl:v:28:y:2025:i:3:p:17-31
    DOI: 10.15240/tul/001/2025-5-018
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    Keywords

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    JEL classification:

    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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