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May 16, 2026Sustainable HorizonsOpen Access

Drivers of circular economy transition towards sustainability: A panel data analysis across 18 EU countries

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Authors

JOJudit OláhMAMohammad Bin AminMHMehedi Hasan

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Overview

Panel data analysis shows circular economy impacts CO2 and unemployment in 18 EU countries, indicating trade-offs and benefits.

Key Points

  • This study aims to evaluate how the adoption of a circular economy influences sustainability outcomes across 18 EU countries.
  • Analyzed panel data from Eurostat, World Bank, and OECD for the period 2010–2019.
  • Utilized two-way fixed-effects panel regressions to assess the relationship between circular economy indicators and sustainability outcomes.
  • Key drivers investigated include renewable energy shares, renewable energy in transport, and municipal waste management.
  • A 1% rise in circular material use leads to a 0.048% reduction in CO2 emissions (p = 0.002).
  • Renewable energy in transport significantly lowers CO2 emissions by 0.104% (p < 0.001) but increases unemployment by 0.217% (p = 0.001).
  • Efficient waste management results in a 0.728% reduction in unemployment (p < 0.001), evidencing substantial job creation.

Cite This Study

Oláh et al. (2026) studied this question.

synapsesocial.com/papers/6a0809bea487c87a6a40b99chttps://doi.org/10.1016/j.horiz.2026.100192
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