IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v70y2022ics0160791x22001646.html
   My bibliography  Save this article

Making the circular economy digital or the digital economy circular? Empirical evidence from the European region

Author

Listed:
  • Hong Nham, Nguyen Thi
  • Ha, Le Thanh

Abstract

This paper answers the question of whether digitalization enables the circular economy or circularity promotes the digital transformation process. We use six diverse measures to reflect the circularity of European countries: municipal waste, the number of circularity patents, circular material usage, recycle waste rate, recycling biowaste rate, and recycling e-waste rate. In order to assess digital businesses, we use four measures of e-Commerce – online selling, e-Commerce sales, e-Commerce web sales, and e-Commerce turnover – and two measures of e-Business: customer relation management usage and cloud usage. We use user-centricity and key enablers to assess digital public services. Our estimation results reveal that the initial development of digitalization can enable European countries to transit to the circular economy. However, the overdevelopment of digitalization hinders this process. By contrast, we present a nonlinear relationship between digitalization and circularity, suggesting that digitalization can positively impact the circularity level after reaching a certain level.

Suggested Citation

  • Hong Nham, Nguyen Thi & Ha, Le Thanh, 2022. "Making the circular economy digital or the digital economy circular? Empirical evidence from the European region," Technology in Society, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:teinso:v:70:y:2022:i:c:s0160791x22001646
    DOI: 10.1016/j.techsoc.2022.102023
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X22001646
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2022.102023?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    2. Beck, Nathaniel & Katz, Jonathan N., 1995. "What To Do (and Not to Do) with Time-Series Cross-Section Data," American Political Science Review, Cambridge University Press, vol. 89(3), pages 634-647, September.
    3. Bu, Maoliang & Li, Shuang & Jiang, Lei, 2019. "Foreign direct investment and energy intensity in China: Firm-level evidence," Energy Economics, Elsevier, vol. 80(C), pages 366-376.
    4. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    5. Sweet, Cassandra & Eterovic, Dalibor, 2019. "Do patent rights matter? 40 years of innovation, complexity and productivity," World Development, Elsevier, vol. 115(C), pages 78-93.
    6. Gala, Paulo & Camargo, Jhean & Magacho, Guilherme & Rocha, Igor, 2018. "Sophisticated jobs matter for economic complexity: An empirical analysis based on input-output matrices and employment data," Structural Change and Economic Dynamics, Elsevier, vol. 45(C), pages 1-8.
    7. Larbi-Siaw, Otu & Xuhua, Hu & Owusu, Ebenezer & Owusu-Agyeman, Abigail & Fulgence, Brou Ettien & Frimpong, Samuel Akwasi, 2022. "Eco-innovation, sustainable business performance and market turbulence moderation in emerging economies," Technology in Society, Elsevier, vol. 68(C).
    8. Ha, Le Thanh, 2022. "Effects of digitalization on financialization: Empirical evidence from European countries," Technology in Society, Elsevier, vol. 68(C).
    9. Tonni Agustiono Kurniawan & Xue Liang & Elizabeth O’Callaghan & Huihwang Goh & Mohd Hafiz Dzarfan Othman & Ram Avtar & Tutuk Djoko Kusworo, 2022. "Transformation of Solid Waste Management in China: Moving towards Sustainability through Digitalization-Based Circular Economy," Sustainability, MDPI, vol. 14(4), pages 1-15, February.
    10. Shahbaz, Muhammad & Nasir, Muhammad Ali & Roubaud, David, 2018. "Environmental degradation in France: The effects of FDI, financial development, and energy innovations," Energy Economics, Elsevier, vol. 74(C), pages 843-857.
    11. Tadas Limba & Andrejus Novikovas & Andrius Stankevičius & Antanas Andrulevičius & Manuela Tvaronavičienė, 2020. "Big Data Manifestation in Municipal Waste Management and Cryptocurrency Sectors: Positive and Negative Implementation Factors," Sustainability, MDPI, vol. 12(7), pages 1-14, April.
    12. Ha, Le Thanh & Nam, Pham Xuan & Thanh, To Trung, 2021. "Effects of Bribery on Firms' Environmental Innovation Adoption in Vietnam: Mediating Roles of Firms' Bargaining Power and Credit and Institutional Constraints," Ecological Economics, Elsevier, vol. 185(C).
    13. Tina Ringenson & Mattias Höjer & Anna Kramers & Anna Viggedal, 2018. "Digitalization and Environmental Aims in Municipalities," Sustainability, MDPI, vol. 10(4), pages 1-16, April.
    14. Gianmarco Bressanelli & Federico Adrodegari & Marco Perona & Nicola Saccani, 2018. "Exploring How Usage-Focused Business Models Enable Circular Economy through Digital Technologies," Sustainability, MDPI, vol. 10(3), pages 1-21, February.
    15. Korhonen, Jouni & Honkasalo, Antero & Seppälä, Jyri, 2018. "Circular Economy: The Concept and its Limitations," Ecological Economics, Elsevier, vol. 143(C), pages 37-46.
    16. Sun, Chuanwang & Li, Zhi & Ma, Tiemeng & He, Runyong, 2019. "Carbon efficiency and international specialization position: Evidence from global value chain position index of manufacture," Energy Policy, Elsevier, vol. 128(C), pages 235-242.
    17. Usama Awan & Robert Sroufe & Muhammad Shahbaz, 2021. "Industry 4.0 and the circular economy: A literature review and recommendations for future research," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2038-2060, May.
    18. Adriana Neligan, 2018. "Digitalisation as Enabler Towards a Sustainable Circular Economy in Germany," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 53(2), pages 101-106, March.
    19. Henning Kagermann, 2015. "Change Through Digitization—Value Creation in the Age of Industry 4.0," Springer Books, in: Horst Albach & Heribert Meffert & Andreas Pinkwart & Ralf Reichwald (ed.), Management of Permanent Change, edition 127, chapter 2, pages 23-45, Springer.
    20. Pierre Desrochers, 2002. "Regional development and inter-industry recycling linkages: some historical perspectives," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 14(1), pages 49-65, January.
    21. Zakari, Abdulrasheed & Khan, Irfan & Tan, Duojiao & Alvarado, Rafael & Dagar, Vishal, 2022. "Energy efficiency and sustainable development goals (SDGs)," Energy, Elsevier, vol. 239(PE).
    22. Mateusz Lewandowski, 2016. "Designing the Business Models for Circular Economy—Towards the Conceptual Framework," Sustainability, MDPI, vol. 8(1), pages 1-28, January.
    23. Popkova, Elena G. & De Bernardi, Paola & Tyurina, Yuliya G. & Sergi, Bruno S., 2022. "A theory of digital technology advancement to address the grand challenges of sustainable development," Technology in Society, Elsevier, vol. 68(C).
    24. Watanabe, Chihiro & Naveed, Nasir & Neittaanmäki, Pekka, 2018. "Digital solutions transform the forest-based bioeconomy into a digital platform industry - A suggestion for a disruptive business model in the digital economy," Technology in Society, Elsevier, vol. 54(C), pages 168-188.
    25. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shaolun Zeng & Huili Yang, 2023. "A Bibliometric and Visualization Analysis of Knowledge Mapping in Digital Economy Research, 1992–2022," Sustainability, MDPI, vol. 15(8), pages 1-15, April.
    2. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    3. Shuangjie Li & Wei Wang & Liming Wang & Ge Wang, 2023. "Digital Economy and 3E Efficiency Performance: Evidence from EU Countries," Sustainability, MDPI, vol. 15(7), pages 1-18, March.
    4. Shang, Yuping & Raza, Syed Ali & Huo, Zhe & Shahzad, Umer & Zhao, Xin, 2023. "Does enterprise digital transformation contribute to the carbon emission reduction? Micro-level evidence from China," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 1-13.
    5. Lyulyov, Oleksii & Pimonenko, Tetyana & Saura, Jose Ramon & Barbosa, Belem, 2024. "How do e-governance and e-business drive sustainable development goals?," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    6. Ziyuan Chi & Zhen Liu & Fenghong Wang & Mohamed Osmani, 2023. "Driving Circular Economy through Digital Technologies: Current Research Status and Future Directions," Sustainability, MDPI, vol. 15(24), pages 1-28, December.
    7. Stefan Apostol & Eduardo Hernández-Rodríguez, 2023. "Digitalisation in European regions: Unravelling the impact of relatedness and complexity on digital technology adoption and productivity growth," Papers in Evolutionary Economic Geography (PEEG) 2317, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2023.
    8. Fazal Ur Rehman & Basheer M. Al-Ghazali & Adel Ghaleb Haddad & Ehab Abdullatif Qahwash & M. Sadiq Sohail, 2023. "Exploring the Reverse Relationship between Circular Economy Innovation and Digital Sustainability—The Dual Mediation of Government Incentives," Sustainability, MDPI, vol. 15(6), pages 1-21, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ha, Le Thanh, 2023. "The role of financial development in enhancing trades in environmental goods: International insights from 119 countries," Journal of Commodity Markets, Elsevier, vol. 29(C).
    2. To Trung Thanh & Le Thanh Ha & Hoang Phuong Dung & Tran Thi Lan Huong, 2023. "Impacts of digitalization on energy security: evidence from European countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11599-11644, October.
    3. Ha, Le Thanh, 2024. "A transition to sustainable marine living resources: Why does digital transformation matter?," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    4. Ha, Le Thanh, 2023. "An investigation of digital integration's importance on smart and sustainable agriculture in the European region," Resources Policy, Elsevier, vol. 86(PA).
    5. Canh Phuc Nguyen & Christophe Schinckus & Thanh Dinh Su, 2020. "The drivers of economic complexity: International evidence from financial development and patents," International Economics, CEPII research center, issue 164, pages 140-150.
    6. Le Thanh Ha & Pham Thi Ngoc Hanh & Nguyen Thi Thu Hang & Hoang Dang Khanh & Le Lan Phuong & Hoang Hop, 2024. "Is digital business an enabler of enhanced entrepreneurship? An empirical investigation of European countries," Journal of International Entrepreneurship, Springer, vol. 22(2), pages 164-186, June.
    7. Wilman-Santiago Ochoa-Moreno & Byron Alejandro Quito & Carlos Andrés Moreno-Hurtado, 2021. "Foreign Direct Investment and Environmental Quality: Revisiting the EKC in Latin American Countries," Sustainability, MDPI, vol. 13(22), pages 1-18, November.
    8. Francisco García-Lillo & Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa, 2023. "Renewable Energies and Sustainable Development: A Bibliometric Overview," Energies, MDPI, vol. 16(3), pages 1-22, January.
    9. Ha, Le Thanh, 2022. "Effects of digitalization on financialization: Empirical evidence from European countries," Technology in Society, Elsevier, vol. 68(C).
    10. Niklas Potrafke, 2012. "Political cycles and economic performance in OECD countries: empirical evidence from 1951–2006," Public Choice, Springer, vol. 150(1), pages 155-179, January.
    11. Khan, Muhammad Tariq Iqbal & Yaseen, Muhammad Rizwan & Ali, Qamar, 2019. "Nexus between financial development, tourism, renewable energy, and greenhouse gas emission in high-income countries: A continent-wise analysis," Energy Economics, Elsevier, vol. 83(C), pages 293-310.
    12. Potrafke, Niklas, 2010. "The growth of public health expenditures in OECD countries: Do government ideology and electoral motives matter?," Journal of Health Economics, Elsevier, vol. 29(6), pages 797-810, December.
    13. Wei Li & Tao Zhao & Yanan Wang & Fang Guo, 2017. "Investigating the learning effects of technological advancement on CO2 emissions: a regional analysis in China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 88(2), pages 1211-1227, September.
    14. Yahya Algül & Deniz Erenel, 2024. "The Impact of R&D Expenditures on Regional Energy Intensity in Turkey," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 546-557, September.
    15. Zhang, Zhinan & Xu, Xiangyun, 2023. "Sustainable financial risk, resources abundance and technological innovation: Evidence from resources abundance economies," Resources Policy, Elsevier, vol. 83(C).
    16. Zhang, Chuanguo & Zhou, Xiangxue, 2016. "Does foreign direct investment lead to lower CO2 emissions? Evidence from a regional analysis in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 943-951.
    17. Panait, Mirela & Apostu, Simona Andreea & Vasile, Valentina & Vasile, Razvan, 2022. "Is energy efficiency a robust driver for the new normal development model? A Granger causality analysis," Energy Policy, Elsevier, vol. 169(C).
    18. Eleftherios Giovanis & Oznur Ozdamar, 2022. "The impact of climate change on budget balances and debt in the Middle East and North Africa (MENA) region," Climatic Change, Springer, vol. 172(3), pages 1-27, June.
    19. Pham, Thi Hoang Anh & Doan, Ngoc Thang, 2023. "Global bank complexity and financial fragility around the world," Economic Systems, Elsevier, vol. 47(1).
    20. Ng Thanh Mai & Le Thanh Ha & Tr?n Thi Mai Hoa & Nguyen Thi Thanh Huyen, 2022. "Effects of Digitalization on Natural Resource Use in European Countries: Does Economic Complexity Matter?," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 77-92, May.

    More about this item

    Keywords

    The circular economy; Digital public services; Digital business; European countries;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:70:y:2022:i:c:s0160791x22001646. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.