Development and integrated assessment of the circular economy in the European Union: the outranking approach

Evaluating the Transition of the European Union Member States towards a Circular Economy

This paper presents the assessment of the European Union member states in terms of the circular economy (CE) targets, using a combination of the Data Envelopment Analysis (DEA) method and factor analysis. This approach fills in the existing knowledge gap by providing an innovative methodology of an objectivised comparative evaluation of the degree of implementation of the CE principles by the EU countries. Assessing countries’ performance in achieving the goals of the circular economy is a challenge due to the lack of a generally accepted methodology, the multitude of indicators, and the insufficient data. Countries may be compared in a narrow way, according to single indicators, but a more holistic synthetic assessment of countries is also needed to determine their position against each other. In such cases, DEA may be successfully used. The study resulted in the identification of two clusters of countries with similar profiles of relative efficiency in the CE goals’ implementation. It was concluded that the position of a particular country in achieving the CE aims was strongly correlated its GDP per capita. Moreover, factor analysis showed that many CE indicators are strongly correlated with each other and may be aggregated into five meta-indicators (factors): Recycling rate of general waste, Waste production, Jobs and investments, Recycling rate of special waste, and Circular material use rate. In addition to simple rankings and indication of benchmarks, the article offers a novel concept of technology competitors which was used to group units competing for positions in the ranking.

A Critical Review of EU Key Indicators for the Transition to the Circular Economy

The objective of this paper is to analyze the extent to which the system of indicators that is used in the Monitoring Framework for the transition to the circular economy (CE) is efficient and relevant in their contribution to the sustainable development of European communities. The fundaments of the transition framework and the main characteristics of the circularity indicators are presented. A critical review was performed in order to fulfill the objective of analyzing the current indicators. It is concluded that the indicators in the current framework are (as a selection from a very broad range of indicators theoretically proposed and with estimated practical applicability) limited from the perspective of circularity only to waste generation and recycling processes containing recyclable materials, without including important circularity indicators related to the prolonging and extending the life cycle of products and materials. This paper proposes and defines such an indicator, based on the consideration of the fundamental scalars describing economy, mass, energy, time, and value, respectively. The indicator is described and its applicability in all the phases of the economy is estimated.