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Environmental Factors and Sustainability of the Circular Economy Model at the European Union Level

Author

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  • Carmen Lenuta Trica

    (Faculty of Agrifood and Environmental Economics, The Bucharest University of Economic Studies, 6 Piata Romana, 1st district, 010374 Bucharest, Romania)

  • Cristian Silviu Banacu

    (Faculty of Management, The Bucharest University of Economic Studies, 6 Piata Romana, 1st district, 010374 Bucharest, Romania)

  • Mihail Busu

    (Faculty of Management, The Bucharest University of Economic Studies, 6 Piata Romana, 1st district, 010374 Bucharest, Romania)

Abstract

In this paper, we develop a methodology for studying the sustainability of the circular economy model based on environmental factors. In open-end systems, waste is converted back to materials and objects through recycling; hence, a linear economy is transformed into a circular economy. Environmental factors support an argument for the sustainable implementation of a circular economy. As humans are producing and using more and more matter and energy for the economy, the environment and recycling become more and more important factors affecting public health. The aim of this study is to present the economic factors of the sustainable development of a circular economy, based on the findings of the economic literature in the field. Starting with the Mankiw–Romer–Weil model of economic growth based on resource productivity, environmental employment, recycling rate and environmental innovation, three statistical hypotheses were validated through a panel data model with the use of the statistical software EViews 9. An econometric analysis was performed for 27 European Union countries between 2007 and 2016. The results highlight that the extended Mankiw–Romer–Weil model is determined by resource productivity, environmental employment, recycling rate and environmental innovation. Investing in recycling infrastructure and innovative resources is essential for the econometric model presented in our analysis, which is in line with the aims of environmental protection and sustainable economic growth.

Suggested Citation

  • Carmen Lenuta Trica & Cristian Silviu Banacu & Mihail Busu, 2019. "Environmental Factors and Sustainability of the Circular Economy Model at the European Union Level," Sustainability, MDPI, vol. 11(4), pages 1-16, February.
  • Handle: RePEc:gam:jsusta:v:11:y:2019:i:4:p:1114-:d:207688
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    References listed on IDEAS

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    3. Katkova Natalia & Murashko Irina, 2019. "The forming of scenarios of enterprise development on the basis of four-level indicator of sustainable development," Technology audit and production reserves, 2(46) 2019, Socionet;Technology audit and production reserves, vol. 2(4(46)), pages 4-10.
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    14. Cristian Silviu Banacu & Mihail Busu & Raluca Ignat & Carmen Lenuta Trica, 2019. "Entrepreneurial Innovation Impact on Recycling Municipal Waste. A Panel Data Analysis at the EU Level," Sustainability, MDPI, vol. 11(18), pages 1-13, September.
    15. Rocsana Bucea-Manea-Țoniş & Aleksandar Šević & Milena P. Ilić & Radu Bucea-Manea-Țoniş & Nevenka Popović Šević & Larisa Mihoreanu, 2021. "Untapped Aspects of Innovation and Competition within a European Resilient Circular Economy. A Dual Comparative Study," Sustainability, MDPI, vol. 13(15), pages 1-16, July.
    16. Gonca Yılmaz, 2023. "Which Factors Drive The Resource Efficiency in Circular Economy? A Panel Data Regression Analysis," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 0(38), pages 19-34, June.
    17. Zvonimira Sverko Grdic & Marinela Krstinic Nizic & Elena Rudan, 2020. "Circular Economy Concept in the Context of Economic Development in EU Countries," Sustainability, MDPI, vol. 12(7), pages 1-13, April.
    18. Emilio Abad-Segura & Ana Batlles de la Fuente & Mariana-Daniela González-Zamar & Luis Jesús Belmonte-Ureña, 2020. "Effects of Circular Economy Policies on the Environment and Sustainable Growth: Worldwide Research," Sustainability, MDPI, vol. 12(14), pages 1-27, July.

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