Correlations in the European Circular Economy

This is the authors' abstract. We don't add key points for this paper.

Circular economy is an economy based on the concept of circularity. Circularity means reuse, remanufacturing or recycling. The circular economy records higher economic benefits, but with minimal consumption of resources and less harmful to the environment. The economy is growing very fast, resources are limited, and the consequences are seen in the degradation of nature. So, the circular economy is the only solution to this issue facing society today. As the revenues are as bigger as possible, the intermediate consumption needs to be as small as possible. If revenues are expressed by gross domestic product, within the circular economy the link between GDP and renewable resources must be direct, as the share of renewable energy grows, the GDP grows, too. Between GDP and unemployment rate there is an inverse correlation, and gas emissions are inversely proportional to renewable resources, when GDP grows, renewable energy grows, too, and unemployment rate and gas emissions are decreasing. For this, are analysed these variables for energy sector, using GDP per capita, the share of renewable energy, gas emissions and unemployment rate in relation to the active population. Starting from the theoretical concepts, an empirical model was created with these variables, showing the related link for Europe, over the 2007-2015 period, using panel analysis.