Resource Productivity in the European Union: An Empirical Assessment

ABSTRACT The objective of this study is to analyze the factors influencing resource productivity in the European Union region from a sustainable development perspective using spatial analysis methods. In this way, the feasibility of implementing circular economy principles to enhance resource productivity among European Union countries was assessed. Using a two‐period panel dataset for 24 countries, the impact of circular economy indicators on resource productivity was investigated. The analysis indicates that resource productivity is positively associated with the municipal waste recycling rate, persons employed in circular economy sectors, the circular material use rate, and research and development expenditures. Overall, the study highlights the importance of European Union countries adopting the circular economy approach in their sustainable development process in terms of increasing resource productivity. The study also emphasizes that the transition from a linear to a circular model will contribute to sustainable economic development by improving resource productivity. Furthermore, the study underscores that advancements in resource productivity serve as a catalyst for gross domestic product growth. This dynamic illustrates that sustainable economic expansion can be realized independently of raw material consumption by effectively reintegrating waste materials into the manufacturing and production cycle. This also holds significance in guiding the policies to be implemented by countries that are newly joining the European Union during their transition to a circular economy.