I want to be Green! The role of social engagement in a circular economy transition

Over the past decades, the circular economy has garnered significant attention from the international community as a paradigm for economic recovery, poverty alleviation, and emissions reduction, all contributing to the overarching objective of sustainable development. Thus, the promotion of the circular economy can be instrumental for governments in attaining their environmental targets. Circular companies play a central role in the transition to sustainable production and consumption systems; however, the factors that promote their development and growth remain unclear. In our study, we analyze the role of civil society engagement in the development and diffusion of circular companies. We use a dataset covering the Italian provinces from 2010 to 2020 and find that community engagement is strongly associated with the number of circular companies and the share of circular employment, even when accounting for spatial effects. The results suggest that policymakers should leverage bottom-up approaches based on civil society engagement when designing tools and interventions to promote a transition that is economically, environmentally, and socially sustainable.