IDEAS home Printed from https://ideas.repec.org/p/egu/wpaper/2513.html

Circular Economy Transition of European Regions: The Role of Regulative, Normative, and Cultural-Cognitive Institutions

Author

Listed:
  • Duygu Buyukyazici
  • Olivier Brossard
  • Ron Boschma

Abstract

The transition toward a circular economy (CE) represents not only an economic shift but also a profound social transformation that fundamentally redefines production, consumption, and policy patterns; thus, it necessitates comprehensive institutional change. This study presents the first macro-level empirical assessment of the CE transition across European regions over recent decades. Afterwards, it examines how regional regulative, normative, and cultural/cognitive institutions influence regional CE performance by also considering crucial confounding factors including EU cohesion funds, regional decentralisation, and the EU Circular Economy Action Plan (CEAP). The results reveal strong spatial and temporal heterogeneity as well as the diverse effects of different institutions. Regulative institutions exhibit the most consistent positive effect across and within countries. Normative values matter most within regions, while cultural-cognitive factors modestly support CE efforts. Importantly, combination of all institutional pillars yields the greatest circularity gains. EU cohesion funds significantly boost CE progress, especially in less developed regions, while CEAP marks a structural shift in the role of institutions post-2015. Overall, the findings highlight the importance of coordinated institutional frameworks and targeted policy support for advancing the regional CE transition.

Suggested Citation

  • Duygu Buyukyazici & Olivier Brossard & Ron Boschma, 2025. "Circular Economy Transition of European Regions: The Role of Regulative, Normative, and Cultural-Cognitive Institutions," Papers in Evolutionary Economic Geography (PEEG) 2513, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2025.
    • Handle: RePEc:egu:wpaper:2513
    as

    Download full text from publisher

    File URL: http://econ.geo.uu.nl/peeg/peeg2513.pdf
    File Function: Version May 2025
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Andrés Rodríguez‐Pose & Chiara Burlina, 2021. "Institutions and the uneven geography of the first wave of the COVID‐19 pandemic," Journal of Regional Science, Wiley Blackwell, vol. 61(4), pages 728-752, September.
    2. Jürgen Essletzbichler, 2009. "Evolutionary Economic Geography, Institutions, and Political Economy," Economic Geography, Clark University, vol. 85(2), pages 159-165, April.
    3. Levänen, Jarkko & Lyytinen, Tatu & Gatica, Sebastian, 2018. "Modelling the Interplay Between Institutions and Circular Economy Business Models: A Case Study of Battery Recycling in Finland and Chile," Ecological Economics, Elsevier, vol. 154(C), pages 373-382.
    4. Nyborg, Karine & Howarth, Richard B. & Brekke, Kjell Arne, 2006. "Green consumers and public policy: On socially contingent moral motivation," Resource and Energy Economics, Elsevier, vol. 28(4), pages 351-366, November.
    5. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    6. Ron Boschma & Ron Martin (ed.), 2010. "The Handbook of Evolutionary Economic Geography," Books, Edward Elgar Publishing, number 12864.
    7. Kirchherr, Julian & Piscicelli, Laura & Bour, Ruben & Kostense-Smit, Erica & Muller, Jennifer & Huibrechtse-Truijens, Anne & Hekkert, Marko, 2018. "Barriers to the Circular Economy: Evidence From the European Union (EU)," Ecological Economics, Elsevier, vol. 150(C), pages 264-272.
    8. Antoine Dechezleprêtre & Adrien Fabre & Tobias Kruse & Bluebery Planterose & Ana Sanchez Chico & Stefanie Stantcheva, 2025. "Fighting Climate Change: International Attitudes toward Climate Policies," American Economic Review, American Economic Association, vol. 115(4), pages 1258-1300, April.
    9. Peter Andre & Teodora Boneva & Felix Chopra & Armin Falk, 2021. "Misperceived Social Norms and Willingness to Act Against Climate Change," ECONtribute Discussion Papers Series 101, University of Bonn and University of Cologne, Germany.
    10. Andrés Rodríguez-Pose & Roberto Ganau, 2022. "Institutions and the productivity challenge for European regions," Journal of Economic Geography, Oxford University Press, vol. 22(1), pages 1-25.
    11. Beugelsdijk, Sjoerd & van Schaik, Ton, 2005. "Social capital and growth in European regions: an empirical test," European Journal of Political Economy, Elsevier, vol. 21(2), pages 301-324, June.
    12. Do, Quynh & Mishra, Nishikant & Colicchia, Claudia & Creazza, Alessandro & Ramudhin, Amar, 2022. "An extended institutional theory perspective on the adoption of circular economy practices: Insights from the seafood industry," International Journal of Production Economics, Elsevier, vol. 247(C).
    13. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    14. Sjoerd Beugelsdijk & Ton Van Schaik, 2005. "Differences in social capital between 54 Western European regions," Regional Studies, Taylor & Francis Journals, vol. 39(8), pages 1053-1064.
    15. Ron Martin & Peter Sunley, 2006. "Path dependence and regional economic evolution," Journal of Economic Geography, Oxford University Press, vol. 6(4), pages 395-437, August.
    16. Korhonen, Jouni & Honkasalo, Antero & Seppälä, Jyri, 2018. "Circular Economy: The Concept and its Limitations," Ecological Economics, Elsevier, vol. 143(C), pages 37-46.
    17. Timothy Besley & Torsten Persson, 2023. "The Political Economics of Green Transitions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 138(3), pages 1863-1906.
    18. Marcin Dąbrowski & Viktor Varjú & Libera Amenta, 2019. "Transferring Circular Economy Solutions across Differentiated Territories: Understanding and Overcoming the Barriers for Knowledge Transfer," Urban Planning, Cogitatio Press, vol. 4(3), pages 52-62.
    19. Rogge, Nicky & De Jaeger, Simon & Lavigne, Carolien, 2017. "Waste Performance of NUTS 2-regions in the EU: A Conditional Directional Distance Benefit-of-the-Doubt Model," Ecological Economics, Elsevier, vol. 139(C), pages 19-32.
    20. Marcin Dąbrowski & Viktor Varjú & Libera Amenta, 2019. "Transferring Circular Economy Solutions across Differentiated Territories: Understanding and Overcoming the Barriers for Knowledge Transfer," Urban Planning, Cogitatio Press, vol. 4(3), pages 52-62.
    21. Benjamin Enke, 2020. "Moral Values and Voting," Journal of Political Economy, University of Chicago Press, vol. 128(10), pages 3679-3729.
    22. Unruh, Gregory C., 2000. "Understanding carbon lock-in," Energy Policy, Elsevier, vol. 28(12), pages 817-830, October.
    23. Juan Alberto Aragon‐Correa & Dante I. Leyva‐de la Hiz, 2016. "The Influence of Technology Differences on Corporate Environmental Patents: A Resource‐Based Versus an Institutional View of Green Innovations," Business Strategy and the Environment, Wiley Blackwell, vol. 25(6), pages 421-434, September.
    24. Gernot Grabher, 2009. "Yet Another Turn? The Evolutionary Project in Economic Geography," Economic Geography, Taylor & Francis Journals, vol. 85(2), pages 119-127, April.
    25. Ron Boschma & Koen Frenken, 2009. "Some Notes on Institutions in Evolutionary Economic Geography," Economic Geography, Taylor & Francis Journals, vol. 85(2), pages 151-158, April.
    26. Ron A. Boschma & Koen Frenken, 2006. "Why is economic geography not an evolutionary science? Towards an evolutionary economic geography," Journal of Economic Geography, Oxford University Press, vol. 6(3), pages 273-302, June.
    27. Bauwens, Thomas & Hekkert, Marko & Kirchherr, Julian, 2020. "Circular futures: What Will They Look Like?," Ecological Economics, Elsevier, vol. 175(C).
    28. Brian J. Loasby, 2000. "Market institutions and economic evolution," Journal of Evolutionary Economics, Springer, vol. 10(3), pages 297-309.
    29. de Jesus, Ana & Mendonça, Sandro, 2018. "Lost in Transition? Drivers and Barriers in the Eco-innovation Road to the Circular Economy," Ecological Economics, Elsevier, vol. 145(C), pages 75-89.
    30. Federico Savini, 2021. "The circular economy of waste: recovery, incineration and urban reuse," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 64(12), pages 2114-2132, July.
    31. Jürgen Essletzbichler, 2009. "Evolutionary Economic Geography, Institutions, and Political Economy," Economic Geography, Taylor & Francis Journals, vol. 85(2), pages 159-165, April.
    32. Werner Bönte & Christian Dienes, 2013. "Environmental Innovations and Strategies for the Development of New Production Technologies: Empirical Evidence from Europe," Business Strategy and the Environment, Wiley Blackwell, vol. 22(8), pages 501-516, December.
    33. Andrés Rodríguez-Pose & Marco Di Cataldo, 2015. "Quality of government and innovative performance in the regions of Europe," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 673-706.
    34. Timothy Besley & Torsten Persson, 2019. "JEEA-FBBVA LECTURE 2017: The Dynamics of Environmental Politics and Values," Journal of the European Economic Association, European Economic Association, vol. 17(4), pages 993-1024.
    35. Buyukyazici, Duygu & Quatraro, Francesco, 2025. "The skill requirements of the circular economy," Ecological Economics, Elsevier, vol. 232(C).
    36. Kirchherr, Julian & Reike, Denise & Hekkert, Marko, 2017. "Conceptualizing the circular economy: An analysis of 114 definitions," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 221-232.
    37. Geels, Frank W., 2002. "Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case-study," Research Policy, Elsevier, vol. 31(8-9), pages 1257-1274, December.
    38. Sébastien Bourdin & André Torre, 2025. "Economic geography’s contribution to understanding the circular economy," Journal of Economic Geography, Oxford University Press, vol. 25(2), pages 293-308.
    39. Domenech, Teresa & Bahn-Walkowiak, Bettina, 2019. "Transition Towards a Resource Efficient Circular Economy in Europe: Policy Lessons From the EU and the Member States," Ecological Economics, Elsevier, vol. 155(C), pages 7-19.
    40. Nicola Cortinovis & Jing Xiao & Ron Boschma & Frank G van Oort, 2017. "Quality of government and social capital as drivers of regional diversification in Europe," Journal of Economic Geography, Oxford University Press, vol. 17(6), pages 1179-1208.
    41. Nicholas Charron & Lewis Dijkstra & Victor Lapuente, 2014. "Regional Governance Matters: Quality of Government within European Union Member States," Regional Studies, Taylor & Francis Journals, vol. 48(1), pages 68-90, January.
    42. Benjamin Enke & Mattias Polborn & Alex Wu, 2022. "Values as Luxury Goods and Political Polarization," NBER Working Papers 30001, National Bureau of Economic Research, Inc.
    43. Gernot Grabher, 2009. "Yet Another Turn? The Evolutionary Project in Economic Geography," Economic Geography, Clark University, vol. 85(2), pages 119-127, April.
    44. Will McDowall & Yong Geng & Beijia Huang & Eva Barteková & Raimund Bleischwitz & Serdar Türkeli & René Kemp & Teresa Doménech, 2017. "Circular Economy Policies in China and Europe," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 651-661, June.
    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. Sofia Gomes & João M. Lopes & Elisabete Nogueira, 2026. "Charting Resource Efficiency Practices Across European Firms: A Multilevel Analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 33(2), pages 2489-2509, 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. Cahoon, Stephen & Pateman, Hilary & Chen, Shu-Ling, 2013. "Regional port authorities: leading players in innovation networks?," Journal of Transport Geography, Elsevier, vol. 27(C), pages 66-75.
    2. Robert & Claudia Klaerding, 2012. "Theoretical advancement in economic geography by engaged pluralism," Papers in Evolutionary Economic Geography (PEEG) 1202, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2012.
    3. GRIES, Thomas & PALNAU, Irene, 2016. "Distress Beyond Poverty: Spatial Patterns And Geographic Aspects Of Vulnerability In Brazil," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 16(2), pages 53-70.
    4. Heike Schroeder, 2011. "Application possibilities of the micro-meso-macro framework in economic geography," Papers in Evolutionary Economic Geography (PEEG) 1115, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2011.
    5. Hervé Corvellec & Alison F. Stowell & Nils Johansson, 2022. "Critiques of the circular economy," Journal of Industrial Ecology, Yale University, vol. 26(2), pages 421-432, April.
    6. Asheim, Bjørn & M. Bugge, Markus & Coenen, Lars & Herstad, Sverre, 2013. "What Does Evolutionary Economic Geography Bring To The Policy Table? Reconceptualising regional innovation systems," Papers in Innovation Studies 2013/5, Lund University, CIRCLE - Centre for Innovation Research.
    7. Andy Pike & Andrew Cumbers & Stuart Dawley & Danny MacKinnon & Robert McMaster, 2015. "Doing evolution in economic geography," Papers in Evolutionary Economic Geography (PEEG) 1532, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2015.
    8. Zhu, Bing & Nguyen, Mai & Sarm Siri, Nang & Malik, Ashish, 2022. "Towards a transformative model of circular economy for SMEs," Journal of Business Research, Elsevier, vol. 144(C), pages 545-555.
    9. Jon Barrutia & Jon Mikel Zabala-Iturriagagoitia, 2018. "Towards an epigenetic understanding of evolutionary economics and evolutionary economic geography," Evolutionary and Institutional Economics Review, Springer, vol. 15(2), pages 213-241, December.
    10. Jonathan Muringani & Rune Dahl Fitjar & Andrés Rodríguez-Pose, 2024. "Political trust and economic development in European regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(4), pages 2059-2089, December.
    11. Gloria Claudio‐Quiroga & Carlos Poza, 2024. "Measuring the circular economy in Europe: Big differences among countries, great opportunities to converge," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 4707-4725, October.
    12. Hansen , Teis & Coenen , Lars, 2013. "The Geography of Sustainability Transitions: A Literature Review," Papers in Innovation Studies 2013/39, Lund University, CIRCLE - Centre for Innovation Research.
    13. Roberto Antonietti & Ron Boschma, 2021. "Social capital, resilience, and regional diversification in Italy [Social capital, innovation and growth: evidence from Europe]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(3), pages 762-777.
    14. Wouter Jacobs & Theo Notteboom, 2011. "An Evolutionary Perspective on Regional Port Systems: The Role of Windows of Opportunity in Shaping Seaport Competition," Environment and Planning A, , vol. 43(7), pages 1674-1692, July.
    15. J. Brusselaers & J. Gillabel, 2024. "How Circular Is the European Policy Landscape?," Circular Economy and Sustainability, Springer, vol. 4(2), pages 1559-1585, June.
    16. Nallapaneni Manoj Kumar & Shauhrat S. Chopra, 2022. "Leveraging Blockchain and Smart Contract Technologies to Overcome Circular Economy Implementation Challenges," Sustainability, MDPI, vol. 14(15), pages 1-18, August.
    17. Gilbert Silvius & Aydan Ismayilova & Vicente Sales-Vivó & Micol Costi, 2021. "Exploring Barriers for Circularity in the EU Furniture Industry," Sustainability, MDPI, vol. 13(19), pages 1-25, October.
    18. Agustí Segarra‐Blasco & Mercedes Teruel & Josep Tomàs‐Porres, 2024. "Circular economy and public policies: A dynamic analysis for European SMEs," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3532-3549, May.
    19. Nan-Hua Nadja Yang & Ana Carolina Bertassini & Jéssica Alves Justo Mendes & Mateus Cecílio Gerolamo, 2021. "The ‘3CE2CE’ Framework—Change Management Towards a Circular Economy: Opportunities for Agribusiness," Circular Economy and Sustainability, Springer, vol. 1(2), pages 697-718, September.
    20. Ron Boschma, 2025. "Towards an Evolutionary Perspective on Institutions in Economic Geography," Papers in Evolutionary Economic Geography (PEEG) 2527, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2025.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:egu:wpaper:2513. 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: the person in charge The email address of this maintainer does not seem to be valid anymore. Please ask the person in charge to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/deguunl.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.