Analysing the expansion of the circular economy in the European Union: How important is the regional context?

It is widely acknowledged that the progress towards a Circular Economy (CE) model in the European Union (EU) necessitates the cooperation of all levels of government. Nevertheless, empirical research predominantly adopts a national standpoint, disregarding the role of regions. Employing a multilevel model and spatial econometric methods, we examine the factors influencing the expansion of CE in EU regions, considering both regional and national aspects. The findings indicate that the expansion of CE endeavours in the EU mainly depends on regional factors. The regional knowledge base favours the expansion of CE-related business, while national public policies fail to promote them. • Studies analysing the determinants of the expansion of the circular economy (CE) mainly adopt a national perspective. • Regional factors account for a large proportion of the differences in the expansion of EC business models across the EU. • At the regional level, the knowledge environment is an important driver for the expansion of EC business models. • National public environmental policies are not acting efficiently in boosting CE-related economic initiatives.