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<p>This paper analyses the effect of circular economy practices on the Ecological Footprint in Eurozone countries over the period 2004–2023 using a disaggregated panel econometric approach. By decomposing the Ecological Footprint into six sub-components, namely carbon, cropland, grazing land, forest products, fishing grounds and built-up land, the study examines multiple dimensions of environmental pressure. The Principal Component Analysis method is first used to construct a Circular Economy Index from five indicators: circular material use rate, resource productivity, packaging waste recycling rate, municipal waste recycling rate and per capita municipal waste. The short- and long-run relationships between the index and the Ecological Footprint components are then analysed using the Panel Autoregressive Distributed Lag model. The results show that circular economy practices significantly reduce the total Ecological Footprint and, especially, the carbon footprint. However, the effects on cropland, grazing land and fishing grounds footprints are statistically insignificant. These findings indicate that current circular economy policies mainly influence industrial and energy systems, while food and bio-economy systems remain weakly integrated. The study also evaluates the Environmental Kuznets Curve hypothesis and shows that Eurozone economies need more sector-specific circular economy strategies to achieve sustainability objectives.</p>

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The Link Between Circular Economy and the Disaggregated Ecological Footprint in the Eurozone: A Panel ARDL Analysis (2004–2023)

  • 期刊论文

  • 发表日期：

    2026年7月18日

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  • Batuhan Medetoğlu,
  • Yusuf Bahadır Kavas,
  • Arif Saldanlı,
  • Salih Tutar

摘要

This paper analyses the effect of circular economy practices on the Ecological Footprint in Eurozone countries over the period 2004–2023 using a disaggregated panel econometric approach. By decomposing the Ecological Footprint into six sub-components, namely carbon, cropland, grazing land, forest products, fishing grounds and built-up land, the study examines multiple dimensions of environmental pressure. The Principal Component Analysis method is first used to construct a Circular Economy Index from five indicators: circular material use rate, resource productivity, packaging waste recycling rate, municipal waste recycling rate and per capita municipal waste. The short- and long-run relationships between the index and the Ecological Footprint components are then analysed using the Panel Autoregressive Distributed Lag model. The results show that circular economy practices significantly reduce the total Ecological Footprint and, especially, the carbon footprint. However, the effects on cropland, grazing land and fishing grounds footprints are statistically insignificant. These findings indicate that current circular economy policies mainly influence industrial and energy systems, while food and bio-economy systems remain weakly integrated. The study also evaluates the Environmental Kuznets Curve hypothesis and shows that Eurozone economies need more sector-specific circular economy strategies to achieve sustainability objectives.