Empirical Analysis of Circular Economy in EU Countries for Environment Protection in Context of Resources Material and Waste Management

The circular economy is crucial for EU countries, addressing environmental challenges and resource limitations. Transitioning to this model aims to disconnect economic growth from resource consumption, reducing degradation and fostering sustainability. Circular principles like waste reduction and resource efficiency benefit the environment and economy. They also ensure resilience against resource scarcity, which is crucial for long-term viability. This study examines the impact of the real gross domestic product (GDP) per capita, municipal waste generated, renewable energy sources, research and experimental development, and material footprint on resource productivity in EU countries (as a variable that measures the impact rate of the circular economy and environmental protection). Data proceedings in this study are time series indicators, with an annual frequency of 2000 – 2022. The statistical approach in the panel data model is used to find statistical significance, direct on-driven fixed factors, etc. Factors such as the previous value of resource productivity (which has the highest elasticity), real gross domestic product per capita, and municipal waste generation demonstrate a positive and statistically significant influence on the circular economy in the EU. Conversely, the material footprint factor shows a positive and statistically significant impact. The model indicates that all variables have maintained a stable territorial impact on resource productivity within each EU country. EU countries should advance to circular economy policies toward climate change requirements and environmental protection, focusing on waste management and minimizing waste generation.