Adopting circular economy at the European Union level and its impact on economic growth

Abstract

Based on the findings of the economic studies on the implications of industrialization in the case of growing economies, this study aims to present the economic factors that are at the basis of the development of circular economy at the European Union level. Starting with the model of economic growth based on the recycling rate of municipal waste, human capital, productivity of the resources, and green energy use, three statistical hypotheses were validated through a panel data model with the use of EViews 10 statistical software. The analysis was conducted for 27 European Union countries during the time frame 2008-2017. The paper highlights that the circular economy model is determined by resource productivity, labor employed in environmental protection, recycling rate of municipal waste, and renewable energy use.