The Circular Economy in the European Union - a quantiative-emprical investigation

While the research in the Circular Economy was increasing exponentially during the last decade in academia, the impact on economic prosperity still remains ambiguous. This research work analyses this impact in the European Union and its Member States between 2008 and 2016. To answer the research question, quantitative indicators to measure the transition towards the Circular Economy were investigated under the application of econometric analyses in the form of panel data models. Besides conventional statistical analyses, fixed and random effects models were introduced in order to obtain robust results. Previously, quantitative indicators were identified and compared between the Member States. Furthermore, a framework based on the Theory of Change was established. The findings provide empirical evidence for the significant impact of the share of renewable energy, recycling rates of waste, trade of recyclable materials and employment in the Circular Economy sector on economic prosperity, while other indicators are either insignificant or have a negative impact. Moreover, the limitations of the study and the indicators themselves are discussed and recommendations for future investigations are given.