Journal of Circular Economy

The concept of the circular economy has emerged as a response to the challenges posed by resource constraints, waste accumulation, and pollution, threatening both social welfare and business profitability. The circular economy aims for sustainable development, encompassing environmental quality, economic prosperity, and social equity across current and future generations. Despite its recognition as a pivotal solution, there needs to be more comprehensive understanding regarding its development and its economic and social impacts. Therefore, the objective of this paper is to investigate the progress of circular economy sectors in the European Union to get an overview of the circular economy advancements and discuss geographical economic and social effects. The focus is on the indicators of gross value added, private investments, and full-time employment within recycling, repair, and reuse sectors because these sectors provide good proxies for the circular economy activities in the European economy. Results suggest a linear growth of circular economy sectors across the European Union, albeit with variations among member states. The paper discusses the implications of circular economy transition on the economy and society, particularly on the labour market, skill demands, and technology integration, emphasising the need for a critical academic discourse. It questions assumptions about job creation and local employment, especially considering technological advancements that may reduce manual labour in recycling plants. Future research is invited to focus on these macro-level implications and critically reflect on the societal implications of a circular economy transition to shape a more fair and socially inclusive economy.

Alves, B. (2024). Number of recycling facilities in the European Union 2010-2020. Statista, Available online at https://www.statista.com/statistics/1316189/number-of-recycling- facilities-european-union/.

Arnold, M. (2023). Challenges and Paradoxes in Researching in Circular Economy. Circular Economy, 1(5). https://doi.org/10.55845/OEMK9774.

Brusselaers, J.; Breemersch, K.; Geerken, T.; Christis, M.; Lahcen, B.; Dams, Y. (2022).

Macroeconomic and environmental consequences of circular economy measures in a small open economy. The Annals of regional science, 68(2), 283–306. https://doi.org/10.1007/s00168-021-01079-6.

Burger, M.; Stavropoulos, S.; Ramkumar, S.; Dufourmont, J.; van Oort, F. (2019). The heterogeneous skill-base of circular economy employment. Research Policy, 48(1), 248–261. https://doi.org/10.1016/j.respol.2018.08.015.

Centobelli, P.; Cerchione, R.; Chiaroni, D.; Del Vecchio, P.; Urbinati, A. (2020). Designing business models in circular economy: A systematic literature review and research agenda. Business Strategy and the Environment, 29(4), 1734–1749. https://doi.org/10.1002/bse.2466.

European Commission (2015). Closing the loop – An EU action plan for the Circular Economy.

Available online at https://eur-lex.europa.eu/legal-con- tent/EN/TXT/?uri=CELEX:52015DC0614.

European Commission (2018). Impacts of circular economy policies on the labour market. Available online at https://data.europa.eu/doi/10.2779/574719.

European Commission (2019). The European Green Deal sets out how to make Europe the first climate-neutral continent by 2050, boosting the economy, improving people’s health and quality of life, caring for nature, and leaving no one behind. Brussels. Available online at https://ec.europa.eu/commission/presscorner/detail/en/ip_19_6691.

European Commission (2020). A new Circular Economy Action Plan For a cleaner and more competitive Europe.

European Commission (2021). Social economy action plan. Available online at https://ec.europa.eu/social/main.jsp?catId=1537&.

European Commission (2023). Measuring progress towards circular economy in the European Union – Key indicators for a revised monitoring framework. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee.

Eurostat (2022a). Persons employed in circular economy sectors. Available online at https://ec.europa.eu/eurostat/databrowser/view/cei_cie011/default/line?lang=en&category=ce   i.cei_cie.

Eurostat (2022b). Private investment and gross added value related to circular economy sectors.

Project “Economic Aspects of Circular Economy” – Identifying Circular Economy activities. Available online at https://ec.europa.eu/eurostat/web/products-datasets/-/cei_cie012.

Eurostat (2024). Private investment, jobs and gross value added related to circular economy sectors.

ESMS Indicator Profile (ESMS-IP). Eurostat metadata. With assistance of E2: Environmental statistics and accounts, sustainable development. Luxembourg. Available online at https://ec.europa.eu/eurostat/cache/metadata/en/cei_cie011_esmsip2.htm.

Friedman M. (1937). The use of ranks to avoid the Assumption of Normality Implicit in the analysis of variance. Journal of the American Statistical Association, 32(200), 675–701. https://doi.org/10.2307/2279372.

Geerken, T.; Schmidt, J.; Boonen, K.; Christis, M.; Merciai, S. (2019). Assessment of the potential of a circular economy in open economies – Case of Belgium. Journal of Cleaner Production, 227, 683–699. https://doi.org/10.1016/j.jclepro.2019.04.120.

Geissdoerfer, M.; Morioka, S.N.; de Carvalho, M.M.; Evans, S. (2018). Business models and supply chains for the circular economy. Journal of Cleaner Production, 190, 712–721. https://doi.org/10.1016/j.jclepro.2018.04.159.

Geissdoerfer, M.; Savaget, P.; Bocken, N.M.P.; Hultink, E.J. (2017). The Circular Economy – A new sustainability paradigm? Journal of Cleaner Production, 143, 757–768. https://doi.org/10.1016/j.jclepro.2016.12.048.

Jaeger-Erben, M.; Jensen, C.; Hofmann, F.; Zwiers, J. (2021). There is no sustainable circular economy without a circular society. Resources, Conservation and Recycling, 168. https://doi.org/10.1016/j.resconrec.2021.105476.

Kadner, S.; Kobus, J.; Hansen, E.; Akinci, S.; Elsner, P.; Hagelücken, C. et al. (2021). Circular Economy Roadmap for Germany. Edited by acatech/SYSTEMIQ. Circular Economy Initiative Deutschland. Available online at www.circular-economy-initiative.de.

Khajuria, A.; Atienza, V.A.; Chavanich, S.; Henning, W.; Islam, I.; Kral, U. et al. (2022). Accelerating circular economy solutions to achieve the 2030 agenda for sustainable development goals. Circular Economy, 1(1). https://doi.org/10.1016/j.cec.2022.100001.

Kirchherr, J.; Reike, D.; Hekkert, M. (2017). Conceptualizing the circular economy: An analysis of 114 definitions. Resources, Conservation and Recycling, 127, 221–232. https://doi.org/10.1016/j.resconrec.2017.09.005.

Kirchherr, J.; Urbinati, A.; Hartley, K. (2023). Circular economy: A new research field? Journal of Industrial Ecology, 27(5), 1239–1251. https://doi.org/10.1111/jiec.13426.

Kristensen, H.S.; Mosgaard, M.A. (2020). A review of micro level indicators for a circular economy – moving away from the three dimensions of sustainability? Journal of Cleaner Production

243. 243. https://doi.org/10.1016/j.jclepro.2019.118531.

Lahcen, B.; Eyckmans, J.; Rousseau, S.; Dams, Y.; Brusselaers, J. (2022). Modelling the circular economy: Introducing a supply chain equilibrium approach. Ecological Economics, 197. https://doi.org/10.1016/j.ecolecon.2022.107451.

Lehmann, C.; Cruz-Jesus, F.; Oliveira, T.; Damásio, B. (2022). Leveraging the circular economy: Investment and innovation as drivers. Journal of Cleaner Production, 360. https://doi.org/10.1016/j.jclepro.2022.132146.

Lehtimäki, H.; Aarikka-Stenroos, L.; Jokinen, A.; Jokinen, P.; Kotilainen, J. (2023). Catalysts in a Sustainable Circular Economy. 1st ed. New York, US: Routledge.

Llorente-González, L.J.; Vence, X. (2020). How labour-intensive is the circular economy? A policy- orientated structural analysis of the repair, reuse and recycling activities in the European Union. Resources, Conservation and Recycling, 162. https://doi.org/10.1016/j.resconrec.2020.105033.

Mercanti, A. (2022). Inclusion of persons with disabilities in the digital and green economy. Paper prepared for the 1st Employment working, Group meeting under the Indonesian Presidency. Collaborators: ILO, G20, OECD.

Mies, A.; Gold, S. (2021). Mapping the social dimension of the circular economy. Journal of Cleaner Production, 321. https://doi.org/10.1016/j.jclepro.2021.128960.

Moreau, V.; Sahakian, M.; van Griethuysen, P.; Vuille, F. (2017). Coming Full Circle: Why Social and Institutional Dimensions Matter for the Circular Economy. Journal of Industrial Ecology, 21(3), pp. 497–506. https://doi.org/10.1111/jiec.12598.

Neri, A.; Negri, M.; Cagno, E.; Franzò, S.; Kumar, V.; Lampertico, T.; Bassani, C.A. (2023). The role of digital technologies in supporting the implementation of circular economy practices by industrial small and medium enterprises. Business Strategy and the Environment, 32(7), 4693–4718. https://doi.org/10.1002/bse.3388.

Nikolaou, I.E.; Tsagarakis, K.P. (2021). An introduction to circular economy and sustainability: Some existing lessons and future directions. Sustainable Production and Consumption, 28, 600–609. https://doi.org/10.1016/j.spc.2021.06.017.

Padilla-Rivera, A.; Russo-Garrido, S.; Merveille, N. (2020). Addressing the Social Aspects of Circular Economy: A Systematic Literature Review. Sustainability, 12. 1–17. https://doi.org/10.3390/su12197912.

Potting, J.; Hekkert, M.; Worrell, E.; Hanemaaijer, A. (2017). Circular Economy: Measuring Innovation in the Product Chain. Policy Report. English translation. Edited by PBL Netherlands Environmental Assessment Agency.

Prieto-Sandoval, V.; Jaca, C.; Ormazabal, M. (2018). Towards a consensus on the circular economy.

Journal of Cleaner Production, 179, 605–615. https://doi.org/10.1016/j.jclepro.2017.12.224.

Saidani, M.; Yannou, B.; Leroy, Y.; Cluzel, F.; Kendall, A. (2019). A taxonomy of circular economy indicators. Journal of Cleaner Production, 207, 542–559. https://doi.org/10.1016/j.jclepro.2018.10.014.

Sheskin, D. J. (2011). Handbook of Parametric and Nonparametric Statistical Procedures. 5th ed.

New York: Chapman and Hall/CRC. https://doi.org/10.1201/9781420036268.

Stahel, W.R. (2010). The Performance Economy. 2nd ed. Houndmills, Basingstoke, Hampshire, UK: Palgrave Macmillan.

Stahel, W.R. (2019). The Circular Economy. A User’s Guide. 1st ed. London: Routledge.

Suchek, N.; Ferreira, J.J.; Fernandes, P.O. (2022). A review of entrepreneurship and circular economy research: State of the art and future directions. Business Strategy and the Environment, 31(5), 2256–2283. https://doi.org/10.1002/bse.3020.

Valencia, M.; Bocken, N.; Loaiza, C.; de Jaeger, S. (2023). The social contribution of the circular economy. Journal of Cleaner Production, 408, https://doi.org/10.1016/j.jclepro.2023.137082.

van Opstal, W.; Borms, L. (2023). Work integration ambitions of startups in the circular economy.

Annals of Public and Cooperative Economics. https://doi.org/10.1111/apce.12431.

Van Veldhoven, S.; Brende, B.; Holdorf, D.; Van Houten, F.; Raworth, K.; De Vreeze, D. et al. (2022). The Circularity Gap Report. With assistance of Platform for Accelerating the Circular Economy (PACE). Edited by Circle Economy.

Wijkman, A.; Skanberg, K. (2017). The Circular Economy and Benefits for Society. Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency. A study pertaining to Finland, France, the Netherlands, Spain and Sweden. A study report at the request of the Club of Rome.

Zeng, X.; Ogunseitan, O.A.; Nakamura, S.; Suh, S.; Kral, U.; Li, J.; Geng, Y. (2022). Reshaping global policies for circular economy. Circular Economy, 1(1). https://doi.org/10.1016/j.cec.2022.100003.