Does circularity mean energy transition and energy security? novel evidence from European countries

Abstract

Our paper focuses on disentangling the non-linear connection between circularity (CE) and energy security (ES). In order to evaluate the availability, acceptability, and developability of energy, we incorporated seven variables. The degree of circularity in European countries can be assessed by using six different measures. Using data from European Statistics, we examine variables from 2012 to 2019. We employ FGLS and PSCE estimation methods to quantify the effects of circularity on three aspects of energy security. Our findings are critical that circularity has non-linear impacts on the consumption of non-fossil fuels, energy, carbon dioxide emissions, and renewable energy. The result is consistent and robust when we apply different measures for circularity. The effect is maintained in the long run. Although the circular economy can have short-term negative effects, it can also have long-term benefits. Our research findings provide important implications for policymakers in terms of promoting the success of the use of circularity initiatives in securing the energy system.