Assessment of municipal waste in a circular economy: Do European Union countries share identical performance?

Abstract

The adoption of a circular economy is a promising approach to reducing the urgent problem of overexploiting natural resources. A major aspect of this problem is the creation of excessive waste. However, the literature lacks knowledge on monitoring the progress towards circularity. This paper fills in the gap, by assessing the municipal waste performance towards circularisation in the European Union, as the circular economy has been particularly championed in its countries. It sought to measure this by, firstly, using Data Envelopment Analysis of variables based on the European Union’s monitoring framework, with inputs and outputs representing the consumption of materials, political concerns, and the economic status of the countries. Secondly, it employed Fractional Regression Models, to study the results. Our sample consisted of data from 24 European Union countries from 2011 to 2019. Results showed a lack of homogeneity in the performance of the various countries and highlighted a gap between northern and southern European countries. The results of the Fractional Regression Models suggested that policies should concentrate on: (i) environmental awareness through education; (ii) enhancing the Human Development Index, (iii) areas with greater urban populations; and (iv) decoupling economic growth from environmental damage. • Significant gaps among European Union members towards circularisation. • Borders among northern and southern Europe in circular economy performance. • Level of education and well-being contributes positively to countries’ efficiency. • Production function variables negatively affect the adoption of circular economy.