Examining Energy and Carbon Intensity of the European Fashion Industry: A Hybrid DEA Analysis for Circular Economy

The European fashion industry can tackle parameters such as energy and carbon intensities, aiming to contribute to the sustainable development goals (SDGs) 9 and 12 under the scope of circular economy (CE) principles. The present paper measures eco-efficiency of fashion industry in 22 European countries via a hybrid window data envelopment analysis (WDEA) methodology by employing a short- and a meso-term policy. The inputs are gross fixed capital formation, labor force, and energy intensity value added, additionally value added, and carbon intensity value added are the desirable and undesirable outputs, respectively. The findings show that the meso-term (i.e., five-year) policy has an average eco-efficiency equal to 74.12%, while the short-term (i.e., three-year) policy has 69.15%, leading to the conclusion that a meso-term is better for following circular economy (CE) pathways. The two time-related models’ distinction would be examined regarding its geographic importance, aiming to answer whether there is integration in the European fashion industry. Overall, Western Europe has better eco-efficiency than Eastern Europe due to labor-intensity issues. In essence, the greening of European fashion industry can be done through CE solutions.