Building a circular economy of belonging: An econometric approach

Abstract

This study introduces the concept of a ‘circular economy of belonging’, that links institutional quality, social inclusion and environmental sustainability. The study explores the short- and long-term effects of corruption perception, regulatory quality, life expectancy, fertility and employment rates on circular material use employing panel data from 28 countries between 2010 and 2020. Econometric results support that circular economy (CE) performance improves in low-corruption economies and with strong regulatory frameworks. Employment reforms that foster job creation also speed up the transition to circularity. The results highlight the need for inclusive policies that promote equity, environmental protection and institutional trust – key pillars of a CE. Results also emphasize the link between circularity and waste management, offering empirical insights for policymakers pursuing sustainable and equitable strategies.