Circular Economy and Economic Growth in Europe: Analysis Using the Method of Moments Quantile Regression

ABSTRACT The study investigates the impact of municipal waste recycling rates, per capita municipal waste production, R&D expenditures, and environmental tax revenues on economic growth in 17 European Union countries between 2000 and 2021. The findings obtained by the Method of Moments Quantile Regression (MMQR) approach indicate that the municipal waste recycling rate (RWASTE) has a negative impact on economic growth, while per capita municipal waste (MWASTE), R&D expenditures (RD), and environmental tax revenues (TAX) have a significant positive impact on economic growth. Furthermore, the impact of variables on economic growth varies according to income levels in EU countries. The negative impact of the recycling rate on economic growth indicates that the environmental Kuznets Curve remains valid in these countries.