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Advancing Circular Economy: G20 Nations’ Path Towards 12th Sustainable Development Goal

Author

Listed:
  • Jessica Suarez Campoli

    (University of São Paulo)

  • Tatiana Kimura Kodama

    (University of São Paulo)

  • Marcelo Seido Nagano

    (University of São Paulo)

  • Heloisa Lee Burnquist

    (University of São Paulo)

Abstract

The growing concern for sustainability is driving the search for new economic approaches. In this scenario, the Circular Economy (CE) emerges as an alternative to the linear model, proposing a regenerative system that keeps products and materials in use for longer, reducing pressure on natural resources and minimizing environmental impacts. In this context, the objective of this article is to determine the efficiency and productivity of G20 countries in achieving the Sustainable Development Goal 12 (SDG) (responsible consumption and production) under the circular economy perspective from 2017 to 2019. The methodological framework applied were Data Envelopment Analysis- Slack Based Measure (DEA-SBM) output-oriented to determine the efficiency of the Malmquist Productivity Index (MPI) to measure productivity. In developed models to represent a linear economy model were used as inputs: gross capital formation, labor force, and primary energy supply. To express the circular economy were used as outputs: domestic material consumption, electricity consumption, renewable energy consumption, and total greenhouse gas emissions (GHG) emissions from fuels. The results show a heterogeneous performance among developed and emerging countries concerning their progress toward the 12th SDG targets during the specified timeframe. Among developed countries, Australia, Canada, and Italy were efficient, while among emerging countries, Brazil and Argentina were efficient. The average efficiency in developed countries rose by 2.13% from 2017 to 2019. On the other hand, efficiency in emerging countries experienced a decrease of 21.81%. The gains in productivity were more related to technological advancements than to efficiency gains. Developed countries have shown greater alignment with the circular economy, which is associated with the development of environmental policies aimed at regulation and sustainability standards, as well as economic incentives (subsidies, tax exemptions, and financing) for companies to promote sustainable practices and advance the 12th SDG. The study provides a quantitative assessment of efficiency and productivity among G20 countries in achieving SDG 12, identifies best practices from efficient countries, and can contribute to the formulation of environmental policies.

Suggested Citation

  • Jessica Suarez Campoli & Tatiana Kimura Kodama & Marcelo Seido Nagano & Heloisa Lee Burnquist, 2025. "Advancing Circular Economy: G20 Nations’ Path Towards 12th Sustainable Development Goal," Circular Economy and Sustainability, Springer, vol. 5(1), pages 1-24, February.
    • Handle: RePEc:spr:circec:v:5:y:2025:i:1:d:10.1007_s43615-024-00415-0
    DOI: 10.1007/s43615-024-00415-0
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    More about this item

    Keywords

    G20 countries; Circular economy (CE); SDG 12th (responsible consumption and production); Data envelopment analysis (DEA); Malmquist productivity index (MPI);
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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