Circular Economy in European Countries: The Required Link for Green Foreign Financing Investment Policy
摘要
Green foreign financing policy (GFFP) is a critical factor in accelerating the shift to a resource-saving society and promoting the long-term growth of the national economy on the path toward the circular economy (CE). This paper attempts to investigate the experimental influences of GFFP on CE. We are employing various econometric techniques in a worldwide sample between 2014 and 2022. The estimated results show that the extent of GFFP has a significant effect on promoting the circular economy. We found strong results using different econometric techniques and including more explanatory variables. To clarify the relationship between GFFP and variables, we show the short- and long-term impacts of GFFP on the circular economy and compare GFFP with it. The results show that CE relationships are more likely to persist for long periods. Notably, we also found significant and consistent effects of GFFP on four alternative measures of CE, including related patent numbers (CE_PA), use of circulating materials (CE_MA), waste recycling (CE_RW), and biowaste recycling (CE_RB).