Circular material use and regional club convergence of resource productivity in the European union

This study investigates whether Circular Material Use (CMU) fosters convergence in resource productivity across the 27 European Union (EU) countries, relying on data spanning 2000-2023. Using Phillips and Sul’s club convergence framework, we identify four distinct convergence clubs, demonstrating persistent disparities. Our ordered probit analysis reveals that higher CMU significantly increases a country’s likelihood of belonging to a higher resource productivity club. These findings underscore CMU’s role in bridging resource productivity gaps and emphasize the need for targeted circular economy policies.