The Circular Economy Gap in the European Union: Convergence or Divergence Among Member States?

Abstract

In the European Union, the circular economy is gaining relevance to increase competitiveness and promote economic growth while decreasing environmental consequences and primary resource dependency. This study uses factor and cluster analysis to uncover the disparities in the main circular economy dimensions within the European Union 27, covering the years from 2015 to 2019. The results highlight two main circularity dimensions—sustainability and productivity—and three distinct circular economy profiles—optimizers, sustainables, and laggards. Findings suggest that while the European gap in terms of circularity is narrowing regarding productivity, it appears to be widening concerning sustainability. Furthermore, countries have yet to strike a balance between the sustainability and productivity dimensions, meaning additional efforts should be made to achieve more homogeneous progress.