Panel data analysis on the circular economy and its determinants

Abstract

An environmentally sustainable world is created as a result of the circular economy and steps taken toward recycling. In this way, the contribution of the creation of an environmentally friendly (environmentally conscious) society to the economic growth and social development of countries reaches remarkable dimensions. This study aims to determine the factors affecting the cyclical economy and recycling in the period 2010-2019 for 15 EU member states using a panel data analysis method. While the dependent variable used in this study was the circular economy index, the independent variables were the gross domestic product (GDP) per capita, trade openness, human capital, and renewable energy consumption in the study. In the study, it was concluded that there is a statistically significant and positive relationship between the increase in GDP per capita and the circular economy index. In addition, it was found that there is a statistically significant and positive relationship between human capital, renewable energy consumption, trade openness, and the circular economy index.