How are regions using European funds to promote the circular economy? Shedding light on factors explaining the pathway

Abstract

Purpose: This study aims to examine the geographical spread of the EU-funded circular economy projects in the European Union. Design/methodology/approach: The authors use a novel database of research and development projects funded by the European Regional Development Fund related to the circular economy to estimate a fractional response model on data for 231 European regions. Findings: First, the authors detect a geographical pattern in the share of circular economy funds. Second, the authors find that institutional quality, employment, human capital and income may drive the concentration of circular economy research and development funds. Third, the authors find overall differences between technology projects and circular economy projects, suggesting that addressing the circular economy at the subnational level is complex. Social implications: This work can be helpful to disseminate Sustainable Development Goals (SDGs). In particular, the authors pay special emphasis on SDGs numbers 11 (Sustainable Cities and Communities) and 13 (Climate Action). Originality/value: The findings confirm the existence of a geographical spread of the circular economy, which may be useful to move toward regional sustainable development in the European Union.