IDEAS home Printed from https://ideas.repec.org/a/ntu/ntugeo/vol12-iss2-34-44.html
   My bibliography  Save this article

Financing The Circular Economy Through State Aid: A Cross Countries Analysis

Author

Listed:
  • ANDREEA-EMANUELA DRĂGOI

    (Institute for World Economy, Romanian Academy)

Abstract

The circular economy is a key development goal for the European Union (EU), in line with its broader objective of achieving climate neutrality by 2050. The circular economy is built on the 3Rs: recycle, reuse, and repair, which aim to reduce waste, promote sustainable development, enhance renewable energy, and protect the environment. While several EU initiatives support financing for the circular economy, our research focuses on how State Aid can be used to foster objectives such as renewable energy and environmental protection. The primary goal is to analyse the progress made by EU Member States during and after the COVID-19 pandemic in financing the circular economy through State Aid, highlighting key challenges and opportunities. We employ a quantitative analysis based on the latest State Aid Scoreboard, primarily using data from 2019-2022, the most recent available. The analysis includes a case study of Romania, examining its performance in granting State Aid for energy and environmental protection. Our main finding is that while State Aid related to the pandemic decreased in 2022, many Member States continue to address post-pandemic economic imbalances. There remains significant potential for boosting State Aid to support the circular economy, particularly in the areas of energy and environmental protection.

Suggested Citation

  • Andreea-Emanuela Drăgoi, 2024. "Financing The Circular Economy Through State Aid: A Cross Countries Analysis," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 12(2), pages 34-44, December.
  • Handle: RePEc:ntu:ntugeo:vol12-iss2-34-44
    as

    Download full text from publisher

    File URL: http://www.globeco.ro/wp-content/uploads/vol/split/vol_12_no_2/geo_2024_vol12_no2_art_004.pdf
    File Function: First version, 2024
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Karl Aiginger & Dani Rodrik, 2020. "Rebirth of Industrial Policy and an Agenda for the Twenty-First Century," Journal of Industry, Competition and Trade, Springer, vol. 20(2), pages 189-207, June.
    2. Antimiani, Alessandro & Costantini, Valeria & Paglialunga, Elena, 2023. "Fossil fuels subsidy removal and the EU carbon neutrality policy," Energy Economics, Elsevier, vol. 119(C).
    3. Mukhtar A. Kassem & Afiqah R. Radzi & Asankha Pradeep & Mohammed Algahtany & Rahimi A. Rahman, 2023. "Impacts and Response Strategies of the COVID-19 Pandemic on the Construction Industry Using Structural Equation Modeling," Sustainability, MDPI, vol. 15(3), pages 1-24, February.
    4. Ana Alexandra Mocanu & Gabriel Brătucu & Eliza Ciobanu & Ioana Bianca Chițu & Anita Cornelia Szakal, 2024. "Can the Circular Economy Unlock Sustainable Business Growth? Insights from Qualitative Research with Specialists in Romania," Sustainability, MDPI, vol. 16(5), pages 1-28, February.
    5. Elkerbout, Milan & Egenhofer, Christian & Núñez Ferrer, Jorge & Catuti, Mihnea & Kustova, Irina & Rizos, Vasileios, 2020. "The European Green Deal after Corona - Implications for EU climate policy," CEPS Papers 26869, Centre for European Policy Studies.
    Full references (including those not matched with items on IDEAS)

    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. Grillitsch, Markus & Asheim, Björn & Fünfschilling, Lea & Kelmenson, Sophie & Lowe, Nichola & Lundquist, Karl Johan & Mahmoud, Yahia & Martynovich, Mikhail & Mattson, Pauline & Miörner, Johan & Nilsso, 2023. "Rescaling: An Analytical Lense to Study Economic and Industrial Shifts," Papers in Innovation Studies 2023/11, Lund University, CIRCLE - Centre for Innovation Research.
    2. Robert J. R. Elliott & Ingmar Schumacher & Cees Withagen, 2020. "Suggestions for a Covid-19 Post-Pandemic Research Agenda in Environmental Economics," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(4), pages 1187-1213, August.
    3. Enrico Bergamini & Georg Zachmann, 2020. "Exploring EU’s Regional Potential in Low-Carbon Technologies," Sustainability, MDPI, vol. 13(1), pages 1-28, December.
    4. Pietro Moncada-Paternò-Castello, 2022. "Top R&D investors, structural change and the R&D growth performance of young and old firms," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(1), pages 1-33, March.
    5. Ma, Hongchao & Zhang, Haonan, 2024. "Can green energy expansion develop the mineral resource market in East Asia?," Resources Policy, Elsevier, vol. 90(C).
    6. Jonas Meckling & Jesse Strecker, 2023. "Green bargains: leveraging public investment to advance climate regulation," Climate Policy, Taylor & Francis Journals, vol. 23(4), pages 418-429, April.
    7. Giovanni Dosi & Andrea Roventini & Emmanuele Russo, 2020. "Public Policies And The Art Of Catching Up," Working Papers hal-03242369, HAL.
    8. Giovanni Dosi & Andrea Roventini & Emanuele Russo, 2021. "Public policies and the art of catching up: matching the historical evidence with a multicountry agent-based model [Catching up, forging ahead, and falling behind]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(4), pages 1011-1036.
    9. Henrik Haller & Anna-Sara Fagerholm & Peter Carlsson & Wilhelm Skoglund & Paul van den Brink & Itai Danielski & Kristina Brink & Murat Mirata & Oskar Englund, 2022. "Towards a Resilient and Resource-Efficient Local Food System Based on Industrial Symbiosis in Härnösand: A Swedish Case Study," Sustainability, MDPI, vol. 14(4), pages 1-17, February.
    10. Yan Li & Kailu Zhang & Bojiao Mu & Xinran Mo, 2024. "The long-term effects of transformation and upgrading policies on the market performance of China's coal-fire power generation industry," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 29(7), pages 1-38, October.
    11. Nomaler, Önder & Spinola, Danilo & Verspagen, Bart, 2021. "Demand-led industrialisation policy in a dual-sector small balance of payments constrained economy," MERIT Working Papers 2021-038, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Elfarra, Barakat & Yasmeen, Rizwana & Shah, Wasi Ul Hassan, 2024. "The impact of energy security, energy mix, technological advancement, trade openness, and political stability on energy efficiency: Evidence from Arab countries," Energy, Elsevier, vol. 295(C).
    13. Makoza, Frank, 2023. "Analyzing policy change of Malawi ICT and Digitalization policy: Policy Assemblage Perspective," EconStor Preprints 273309, ZBW - Leibniz Information Centre for Economics.
    14. Tero Erkkilä, 2023. "Global indicators and AI policy: Metrics, policy scripts, and narratives," Review of Policy Research, Policy Studies Organization, vol. 40(5), pages 811-839, September.
    15. Cheang, Bryan, 2024. "Why mission-directed governance risks authoritarianism: lessons from East Asia," LSE Research Online Documents on Economics 125640, London School of Economics and Political Science, LSE Library.
    16. Angela Köppl & Stefan Schleicher & Margit Schratzenstaller-Altzinger & Karl W. Steininger, 2020. "COVID-19, Klimawandel und Konjunkturpakete," WIFO Research Briefs 1, WIFO.
    17. Keijiro Otsuka, 2020. "Strategy for Cluster-Based Industrial Development in Developing Countries," Discussion Papers 2019, Graduate School of Economics, Kobe University.
    18. Marc Dressler, 2023. "Generic strategic profiling of entrepreneurial SMEs – environmentalism as hygiene factor," International Entrepreneurship and Management Journal, Springer, vol. 19(1), pages 121-150, March.
    19. Carmen Heinrich & Christoph Knill & Yves Steinebach, 2025. "Analyzing industrial policy portfolios," Policy Sciences, Springer;Society of Policy Sciences, vol. 58(1), pages 87-109, March.
    20. Martin Gornig & Claudia Kemfert, 2022. "Energiewende steht für die Chance auf Re-Industrialisierung, nicht für De-Industrialisierung [Energy Transition as an Opportunity for Re-Industrialisation]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(12), pages 933-935, December.

    More about this item

    Keywords

    circular economy; sustainable development; State aid; EU; Romania;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

    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:ntu:ntugeo:vol12-iss2-34-44. 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: Stefan Ciucu The email address of this maintainer does not seem to be valid anymore. Please ask Stefan Ciucu to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/feuntro.html .

    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.