Zooming Out: Circular Economy Development in the European Union and its Implications on the Economy and Society
DOI:
https://doi.org/10.55845/LJOD3552Keywords:
Circular Economy, Transition, Indicators, Society, European UnionAbstract
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.
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