The circular economy integrates a series of principles and activities designed to contribute to the reduction in the impact on the environment and the optimal use of resources, as well as the transformation of waste into resources. Environmental protection spending is a central instrument of industrial sustainability governance. This study examines (i) how environmental capital and operational costs have changed over time, (ii) whether environmental taxes affect green investment decisions, and (iii) whether spending on water protection leads to measurable improvements in river water quality. Spearman’s rank correlation analysis is applied to data spanning 2015–2023. The results highlight three main findings. First, although total environmental spending increased by 33.5%, the financial focus shifted toward daily operational costs, which accounted for 79% of all expenditures by 2023. Second, Romania’s reliance on energy taxes drives operational compliance, but it fails to encourage long-term capital investments. Third, water management practices are highly reactive. Spending more does not improve water quality. The research provides empirical evidence about the correlation between environmental expenditure and outcomes within the framework of an EU transition economy that offers insights into the formulation of more effective environmental policy tools.
Ivaşcu et al. (Sun,) studied this question.