Insight into Territorial Efficiency of Circular Economy through Data Envelopment Analysis

Ivana Marjanović ^1* Jelena Stankovic ¹ John Östh ² Milan Marković ³ Marina Stanojević ¹

• ¹ Faculty of Economics, University of Niš, Niš, Serbia
• ² Department of Civil Engineering and Energy Technology, Oslo Metropolitan University, Oslo, Norway
• ³ Innovation Center, University of Niš, Niš, Serbia

Circular economy is as old as humankind, and yet a novel and coming economic paradigm in the post-industrial economy. It eases resource efficiency, curtails waste, and abates environmental harm. Nevertheless, the efficacy of circular economy practices is not yet well-defined, and a thorough appraisal of its effectiveness is requisite. In this study, a method grounded in Data Envelopment Analysis is advanced to assess the efficiency of circular economy in European Union nations. Circular economy metrics from 27 European Union countries were amassed and employed to gauge the ability of countries in reaching circularity. Our findings prove that certain countries, namely the Netherlands, Ireland, and Sweden, show remarkable ability in implementing circular economy policies, while others, such as Bulgaria and Cyprus, evince prospects for enhancement. As per the outcomes, nearly 60% of European Union countries were found to be inefficient in executing circular economy practices, underscoring the necessity to devise policies for improvement. Furthermore, the results indicate that there is a moderate positive connection between circular economy efficiency and the level of countries' economic development. The study provides valuable insights for policymakers and stakeholders in understanding the territorial efficiency of circular economy and offers a useful methodological tool for future research and policy development towards a more effective and sustainable circular economy model.