Social and economic determinants of materials recycling and circularity in Europe: an empirical investigation

The present empirical study sheds light on the role of socioeconomic characteristics toward circular economy, resulting in more sustainable production and consumption patterns. Using fixed-effects and instrumental variable fixed-effects panel approaches, we examine the role of social and economic determinants on materials recycling and circularity in the European Union (EU). Empirical results reveal that recycling and circularity rates are positively affected by factors such as economic wealth, fertility rate, the level of environmental taxes and R&D expenditures. Furthermore, urbanization also seems to have a positive, but nonlinear effect on recycling and circularity rates. Our results can be beneficial to decision makers and managers for implementing several policies aiming to increase recycling and circularity across the EU and beyond.