New circular economy perspectives on measuring sustainable waste management productivity

Abstract

The aim of this study is to delve into the interrelations between sustainability and the circular economy (CE) as it relates to the development of sustainable waste management (SWM). Innovative environmental policy pathways towards the CE are discussed as are the novel Environment Action Programme (EAP) and the new circular economy action plan which are intrinsic parts of the European Green Deal (EGD). Panel data analysis using the Malmquist Productivity Index (MPI) and the Malmquist–Luenberger productivity index (MLPI) is employed to evaluate the growth in total factor productivity in the European Union. The study incorporates as inputs: energy use, labour force, and gross fixed capital formation. Desirable output is described in terms of gross domestic product, and undesirable output – municipal waste generation – is examined using the MLPI model. The studied period is 1995–2019 and involves comparison between three periods: 1998–1999, 2008–2009, and 2018–2019. It is these periods in which TFP has been increasing in Europe in an era with active institutional actions on the environment. The average productivity growth based on MPI and MLPI is found to be 3.28%, and 0.1% respectively. However, we find that the incorporation of municipal waste generation – as an undesirable output – constitutes a significant factor in the lessening of TFP. This analysis provides a useful input for EU stakeholders involved in municipal solid waste management by highlighting methods of effectively waste generation and thus expanding the elements of the CE framework which will be reviewed in the upcoming Agenda 2030 and Agenda 2050 meetings.