The Pursuit of Happiness in a Circular Economy

This article is to examine the relationship between happiness and the circular economy. To achieve this goal, we use both clustering and panel data methods in 31 European countries during the 2000–2020 period. Using the K-means clustering method, three clusters were identified initially. The results of cluster analysis indicate that the countries with the highest happiness and circular economy indices belong to the same cluster. Next, we estimated 48 distinct panel data models utilizing the FMOLS and DOLS methods. The findings indicate a robust positive relationship between happiness and circular economy indices. Hence, this article proposes that adopting a circular economy is the appropriate approach to enhance overall societal happiness.