Circular Economy Indicators Key to Achieving Sustainable Development Goals

A new study from Vilnius Gediminas Technical University has found that circular economy indicators play a crucial role in achieving the sustainable development goals (SDGs) in European Union (EU) countries. The research, published in E+M Ekonomie a Management, used panel regression analysis to determine which circular economy indicators most significantly impact the SDG index across the EU. The study found that certain indicators, such as material and consumption footprint, generation of municipal and packaging waste per capita, and recycling rate of municipal waste, are associated with the improvement of the SDG index, while others, like recycling rate of WEEE and greenhouse gas emissions, are linked to the decrease of the SDG index.

Key Takeaways:

• The circular economy (CE) is a key tool for promoting sustainability by harmonizing societal, economic, and environmental needs and contributing to global sustainable development goals.
• The study developed five separate panel regression models, each representing a pillar of the European Union's CE framework: production and consumption, waste management, secondary raw materials, competitiveness and innovation, and global sustainability and resilience.
• The research outcomes can guide the development of CE policies, prioritizing impactful areas for countries dedicated to achieving sustainable development through CE practices.
• CE indicators have varying effects on the SDG index, with some indicators associated with improvement and others with decrease.
• The study highlights the importance of considering the linkage between the circular economy and its contribution to achieving the SDGs in EU countries.

Statistics:

• The study used panel regression analysis to determine which circular economy indicators most significantly impact the SDG index across the EU countries.
• Five separate panel regression models were developed, each representing a pillar of the European Union's CE framework.
• The study found that certain indicators, such as material and consumption footprint, generation of municipal and packaging waste per capita, and recycling rate of municipal waste, are associated with the improvement of the SDG index (66-80% improvement).
• Others, like recycling rate of WEEE and greenhouse gas emissions, are linked to the decrease of the SDG index (-22-35% decrease).

Sources:

• E+M Ekonomie a Management, Evaluation of Circular Economy Indicators Seeking Sustainable Development Goals. E+M Ekonomie a Management, 2025:1-15.
• Vilnius Gediminas Technical University, Fac Business Management, Dept Econ Engn, Vilnius, Lithuania.