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Challenges and perspectives of the circular economy in the European Union: A comparative analysis of the member states

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  • Castillo-Díaz, Francisco José
  • Belmonte-Ureña, Luis J.
  • Diánez-Martínez, Fernando
  • Camacho-Ferre, Francisco

Abstract

This study features a comprehensive analysis of the status of the circular economy (CE) in the 27 member states of the European Union (EU) and focuses on the CE composite indicator and its specific sub-indicators. The results reveal overall improvements in the implementation of the CE in the period of 2012–2021, although there are significant variations between member countries. Germany is the current leader regarding the use of CE practices, followed by Italy, France, and Belgium. However, there are also notable gaps in critical areas, such as waste management, competitiveness, innovation, and overall sustainability. The study also identifies key factors that influence the implementation of the CE, such as by-product exports, investment in research and development, and waste-management policies. The cluster analysis groups countries into four categories to provide a more detailed view of regional disparities. These findings underline the need for coordinated action at the national and European levels to address remaining challenges and to move towards a more circular and sustainable economy across Europe.

Suggested Citation

  • Castillo-Díaz, Francisco José & Belmonte-Ureña, Luis J. & Diánez-Martínez, Fernando & Camacho-Ferre, Francisco, 2024. "Challenges and perspectives of the circular economy in the European Union: A comparative analysis of the member states," Ecological Economics, Elsevier, vol. 224(C).
    • Handle: RePEc:eee:ecolec:v:224:y:2024:i:c:s0921800924001915
    DOI: 10.1016/j.ecolecon.2024.108294
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    1. Olli-Pekka Hilmola & Haihan Li & Per Hilletofth & Daniella Fjellström, 2025. "Evaluation of EU-27 countries as manufacturing location: strengths and weaknesses model," Operations Management Research, Springer, vol. 18(3), pages 913-926, September.
    2. Chen, Shi & Wang, Mengjie & Huang, Fu-Wei & Chang, Ching-Hui & Lin, Jyh-Jiuan, 2025. "Downcycling in circular production through sustainable insurance under cap-and-trade regulation and carbon tariffs," Energy Economics, Elsevier, vol. 142(C).

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