Proceedings of the 5th International Conference on New Trends in Management, Business and Economics
Year: 2023
DOI:
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An Empirical Application on the Effects of Circular Economy Factors on Economic Growth in the Sustainable Development Goal
Mahmut Sami Duran, Şeyma Bozkaya
ABSTRACT:
With the increase in population in the world, the amount of consumption is increasing at an extremely rapid pace. It is expected that the amount of waste generated by this increase in consumption will increase by 70% until the 2050s. This increase in global consumption and the unsustainable size of waste lead the world to seek new economic models and change consumption policies. In this context, with the EU green agreement, it is aimed to provide a sustainable eco-system with a competitive economy model that targets less carbon emissions and uses resources efficiently. This circular economy model, which uses less resources, prioritizes renewable resources and returns more to the planet than it consumes, is among the most important discussion topics of recent years. With the cyclical economic transformation in the world, not only the global environmental destruction will decrease, but also a great progress will be achieved in the sustainable economic growth targets of the countries.
In this study, it is aimed to examine the effects of Circular Economy indicators on economic growth in 27 EU countries. While the study used a data set covering the period of 2010-2021, the fixed effects model was used to determine the relationship between the variables. Empirical findings show that the recycling rate of waste has a positive effect on economic growth. It has also been observed that imports of recyclable raw materials, private investment in circular economy sectors, and gross added value and resource efficiency have an increasing effect on economic growth. However, it has been determined that environmental tax revenues have a decreasing effect on economic growth.
keywords: Circular Economy, Sustainable Development, Environmental Sustainability, Resource Efficiency, Panel Data Analysis