A Theoretical and Empirical Examination on Selected Countries within the Scope of Circular Economy Model

Abstract

In recent years, the concept of circular economy has gained importance and emerged as a key factor in terms of industrial and environmental policies. Herein, the main purpose of the present paper is exploring the connection between resource productivity and greenhouse gas emission, which are among the circular economy indicators. Resource productivity was adopted as the main dependent variable and greenhouse gas emission as the independent variable. Human development index and R&D expenditures of countries are the control variables in the study. Data from 27 developed and developing countries in Europe for a period ranging from 2006 – 2019 were analyzed using panel regression and it was determined that resource productivity is statistically negatively affected by greenhouse gas emission. Aside from this, findings provide evidence of a positive relationship between resource productivity, human development index and R&D expenditures. These results claim that resource productivity can be increased by reducing the emission of greenhouse gasses and developing policies for clean energy transition.