Relationship between recycling, circular economy and eco-innovation in Europe. Application of a dynamic network data envelopment analysis model

Abstract

Monitoring of European-level circular economy (CE) efficiency requires more researchthandoescurrentlyexistsinthebodyofliteratureonCE. Inthisregard,this researchaimstoanswertworesearchquestions.Firstly, tobeefficient intheimplementationofCEatamacroeconomic level, shouldtherebearelationshipbetween theefficiencyof the threephasesofCE (efficiency inrecycling, efficiency inthe implementationofCEandefficiencyofeco-innovation)?Toanswerthisquestion,we usedecouplingtheory.Secondly,arethethreephasesofCErelatedfromthepoint ofviewofdynamicefficiency?Toanswer thisquestion,weusedynamicefficiency theory. In accordancewith both of these theories, we establish a circular relationship betweenrecycling,CEandeco-innovation.Wetestthiscircularrelationshipthrough theapplicationof thedynamicnetworkdataenvelopmentanalysis (DNDEA)model ofToneandTsutsui.TheanalysisisbasedonEurostatdatafortheperiodof2016to 2022for27Europeancountries. Thisworkcontributestotheadvancementoftheresearchvia(1)thedevelopmentof amodel formeasuring the transversal and longitudinal efficiencyof theCEand (2)thefindingsofpositiveandsignificantrelationshipsbetweentheefficiencyratios ofthethreefundamentalphases(recycling,CEandeco-innovation).Thisleadsusto affirmthatthecountriesstudiedthathavemanagedtobeefficient inrecyclinghave alsobeenintheimplementationphaseofCEandeco-innovation.