VOLUME 19 (Supplement)

Economic and technological determinants of circularity: Panel data evidence from EU-27 member states

To address growing resource constraints and the environmental problems of linear production and consumption, the transition to a circular economy has become a global priority for sustainability. The study examines whether resource productivity, fixed broadband subscriptions, research and development (R&D) expenditure, and employment in circular economy sectors are associated with the circular material use rate in the EU-27. The study estimated a fixed-effects panel model with country-clustered robust standard errors for 27 EU member states over 2014–2023 (270 observations). Resource productivity and fixed broadband subscriptions were positively and significantly associated with circularity, while R&D expenditure and employment in circular economy sectors were not statistically significant. The results suggest that resource-use efficiency and digital connectivity are associated with higher circularity, while the effects of R&D and circular-sector employment may depend on factors not captured in the model. The findings point to the relevance of resource efficiency and digital infrastructure for circularity policy.