Energy transition and the role of circular supply chains: toward resource efficiency and sustainable economic practices

This study examines the various complex elements essential for shifting toward a circular economy (CE). Panel data from 27 European Union (EU) countries and the UK are utilized for this purpose. This research investigates the convergence of socioeconomic, environmental, institutional, and demographic elements, specifically focusing on the environmental deterioration, inequity, and asymmetry that have been exacerbated in the three years since the COVID-19 pandemic (2019–2022). Concurrently, the lack of energy in the Eurozone poses significant obstacles to the cohesiveness of society and the successful execution of (C.E) policy. The main objective of this study is to thoroughly examine how the circular economy is impacted by innovation, population density, changes in the structure of the energy market, environmental sustainability, institutional efficacy, and social safety nets. Results indicate a strong and favorable relationship between involvement in circular economy projects and attributes including resource efficiency, entrepreneurial endeavors, and institutional quality. The analysis findings suggest a positive correlation between the level of social protection provided to the populace and their propensity to adopt CE principles. Currently, EU member states rely more on raw materials than they can recycle. It is also crucial to emphasize that a mere 1% increase in the market dominance of the top producers of natural gas and electricity is associated with a corresponding drop in the circularity rate of 0.33% and 0.30%, respectively. These results suggest that uneven competition in the energy markets may jeopardize EU member states' efforts to collect garbage for recycling.