A Comparative Analysis of Circular Economy Index in Urban and Rural Municipalities

Abstract

The transition to a circular economy (CE) is crucial to sustainable development, necessitating tailored assessment tools to measure circularity at various levels. Recent studies assessing the CE at the municipal level by using statistical data have highlighted the challenge of comparing indicators of differently populated and resourced areas. With existing methodologies, there remains a need for comprehensive approaches that integrate both qualitative and quantitative data to ensure fair and meaningful comparisons. In 2024, Latvia developed and conducted the first CE index at the municipal level. It was based on a self-assessment from municipal governments and citizens, with results calculated into a single index value and four category indices. By applying a mixed methods statistical analysis, this research aimed to compare CE performance, measured by the CE index, and selected socioeconomic and environmental variables between 7 cities and 36 counties or rural municipalities of Latvia. The research concluded that the CE performance is significantly shaped by socioeconomic and spatial factors, with population density and unemployment emerging as consistent predictors. Urban municipalities generally performed better, emphasizing the need for tailored, context-specific CE strategies.