A path towards sustainability through the circular economy phenom: indicators from the Spanish agri-food sector

Abstract

Purpose: This study aims to propose a comprehensive framework for assessing circular economy (CE) performance in the agri-food sector. It identifies those indicators that should be used to measure circularity regarding CE strategies, applies them at a microeconomic level and examines the impact of key business determinants (financial, internalization, knowledge, awareness and digitalization). Design/methodology/approach: A literature review was conducted with a focus on CE strategies and related indicators. The framework obtained is applied on a Spanish agri-food sector survey to provide an empirical CE analysis at firm level. A partial least squares based-structural equation modelling method is applied. Findings: The research suggests a set of circularity indicators to assess CE strategies at micro level. The findings reveal the heterogeneity of CE sub-indicators related to narrowing, slowing, closing and regenerating strategies. It also highlights the strong effects that the drivers tested have on CE, especially awareness and knowledge. Practical implications: This study provides a framework that can guide public policies and business decisions in sectors with significant environmental impacts. It provides a conceptual framework that explains which CE indicators should be considered by governments and regulators when developing policies that seek to promote circular strategies. Social implications: In the case of companies, the results show that acquiring more environmental awareness and knowledge is essential for promoting more sustainable work habits that enhance CE. Originality/value: The paper offers a novel contribution to the CE literature by introducing a multidimensional indicator framework comprehensively applied to the agri-food sector, integrating miscellaneous pillars of circular strategies and business determinants.