Sustainable development in the context of circular economy

Negative developments such as excessive resource consumption and accelerated environmental degradation in recent years have prompted European countries and institutions to adopt the circular economy model instead of the linear economy model. This study examines the relationship between circular economy indicators and gross domestic product, and by so doing, analyzes the impact of the circular economy on achieving sustainable development. To holistically demonstrate the direct and indirect benefits of "becoming circular," the statistical indicators used were those established within the framework developed by the European Commission for monitoring the circular economy. Thus, the core elements of the circular economy could be monitored through these indicators. A total of 25 European countries were analyzed over the period from 2005 to 2023. The analysis employs panel data econometrics, and the model was estimated using Driscoll-Kraay estimators. This method provides robust estimators in the presence of heteroskedasticity, autocorrelation, and cross-sectional dependence. The results of the study show that measures related to the circular economy have a direct impact on economic growth.