Does circularity mean environmental sustainability? Novel evidence from European countries

The objective of this research is to evaluate the effects of green economy initiatives (GEI) on environmental sustainability (ES) through empirical means. The degree of green economy efforts is measured using six different metrics: the percentage of circular material consumption (GEI_MA), municipal trash generation per person (GEI_MW), recycling waste performance (GEI_RW), and recycling and secondary raw materials-related patents (GEI_PA). The latter particularly comprises the biowaste (GEI_RB) and e-waste (GEI_RE) recycling shares. Our analysis, which included information gathered from 19 European nations from 2012 to 2019, shows that GEI_MW significantly improves EPI and ECO. On the other hand, there is no meaningful connection between ecological sustainability and GEI_PA. EPI is strongly positively impacted by GEI_MA and EPI and ECO are positively impacted by GEI_RW. Additionally, GEI_RB has a beneficial impact on EPI, HLT, and ECO, but GEI_RE has a considerable favorable impact on both HLT and ECO. These findings highlight how crucial it is for the government to fund R&D for green economy projects in order to achieve ecological sustainability.