Investigating Synergies and Nexus of Circular Economy and Energy Transition Intensity in context of global paradigm transformations

This paper investigates the possible synergies and interconnections between the circular economy and the intensity of the energy transition within the broader context of global paradigm shifts. Using panel data from EU Member States (2013-2022), a Vector Error Correction Model (VECM) was applied to evaluate long-term dynamics and causality among variables including GDP per capita, material circularity, energy dependency, renewable energy use, greenhouse gas emissions, and innovation outputs. The analysis identifies significant long-run relationships, particularly between GDP per capita and indicators such as circular material use, renewable energy share, and tertiary education. The findings indicate a reciprocal relationship between circularity and energy transformation, contributing significantly to greenhouse gas emissions reduction and sustainable competitiveness. The study highlights synergies and emphasizes the need for coherent policy frameworks that leverage CE-ETI linkages to achieve EU climate neutrality goals, circularity decarbonization, and develop resilient economic systems.