Circular Economy in Action: Examining the Decoupling of Economic Growth and Material Use across EU Countries

Abstract

The circular economy (CE) is a transformative approach that not only preserves and reuses resources but also redefines how economic growth can be achieved in a more sustainable manner. The aim of the paper is to assess whether economic growth in EU countries can be decoupled from resource use through CE practices. Using data from Eurostat spanning 2010-2022, we analyze key indicators such as Raw material consumption (RMC), Gross domestic product (GDP) and Circular material use rate (MUR). We apply correlation analysis and decoupling analysis to assess the efficacy of CE practices in achieving sustainable economic growth. The results indicate significant variability among EU countries in their ability to decouple economic growth from resource consumption. Some countries demonstrated strong absolute decoupling, indicating successful CE integration, while others faced challenges with expansive negative decoupling. The study underscores the necessity for tailored strategies to enhance CE implementation across diverse economic contexts within the EU.

Keywords: decoupling, circular economy, raw material, circular material, GDP, EU countries