This study examines how fiscal and technological factors jointly shape recycling performance within the circular economy framework. Using a balanced panel of eight European Union countries from 2010 to 2024, the analysis integrates System GMM, Fixed-Effects, and Stochastic Frontier Analysis to assess the interaction between landfill taxation and technological efficiency. The results show that the association between landfill taxes and recycling rates strengthens significantly with higher levels of technological efficiency, indicating that technology enhances the effectiveness of fiscalinstruments rather than acting independently. Recycling rates also display strong path dependency, suggesting that historical performance and institutional continuity play a central role in shaping current outcomes. The findings refine Pigovian and ecoinnovation perspectives by demonstrating that fiscal measures are most effective when aligned with technological and institutional capacity. Overall, the study provides empirical evidence that integrating fiscal policy with technological advancement can accelerate progress toward circular economy objectives under the European GreenDeal.
Siamand Hesami (Fri,) studied this question.