Recycling Rate in Europe: Econometric Modeling and dART Clustering Analysis

In its effort to stop environmental damage, humankind has undertaken a series of steps, among which the development of circular economy is central. This practice is based on keeping resources in economic circulation as long as possible through reuse and recycling. The relatively broad scope and interpretations of the concept have led to the creation of numerous metrics to evaluate the advancement of the process. One of them, the recycling rate of solid municipal waste, has emerged as a most useful and straightforward indicator of circular performance. In this study, we conduct an econometric analysis of the circular economy in the European Union in the period 2013–2020. We find that the larger share of investment in research and development, higher resource productivity, GDP per capita, and the adoption of a landfill ban are essential factors leading to a higher recycling rate. A dART clustering analysis offers additional insight into the types of circular economy in Europe.