Towards a circular economy: Implications for emission reduction and environmental sustainability

Governments and policymakers worldwide have been setting targets to achieve an ambitious net-zero emission target by 2050 to tackle the pressing issue of climate change. However, achieving the net-zero emission target by 2050 depends on the factors determining the transition from traditional fossil...

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Main Authors: Hailemariam, Abebe, Erdiaw-Kwasie, Michael Odei
Format: Journal Article
Published: Wiley-Blackwell 2022
Online Access:http://hdl.handle.net/20.500.11937/89274
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author Hailemariam, Abebe
Erdiaw-Kwasie, Michael Odei
author_facet Hailemariam, Abebe
Erdiaw-Kwasie, Michael Odei
author_sort Hailemariam, Abebe
building Curtin Institutional Repository
collection Online Access
description Governments and policymakers worldwide have been setting targets to achieve an ambitious net-zero emission target by 2050 to tackle the pressing issue of climate change. However, achieving the net-zero emission target by 2050 depends on the factors determining the transition from traditional fossil fuel energy sources to renewables. In connection with this, policymakers have emphasised the need to transition from a linear to a circular economy. In this paper, we investigate the effectiveness of the progress towards a circular economy in reducing CO2 emissions and promoting environmental sustainability. To do so, we use annual historical data for a panel of 29 European countries from 2000 to 2020. Using an identification strategy that adopts heteroscedastic-based instrumental variables and addresses endogeneity issues, we find that progress towards a circular economy significantly improves environmental quality via reducing CO2 emissions. Our findings suggest that business strategies promoting recycling and circular economy practices play an important role in environmental sustainability by reducing emissions.
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institution Curtin University Malaysia
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last_indexed 2025-11-14T11:31:22Z
publishDate 2022
publisher Wiley-Blackwell
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spelling curtin-20.500.11937-892742022-09-23T03:21:44Z Towards a circular economy: Implications for emission reduction and environmental sustainability Hailemariam, Abebe Erdiaw-Kwasie, Michael Odei Governments and policymakers worldwide have been setting targets to achieve an ambitious net-zero emission target by 2050 to tackle the pressing issue of climate change. However, achieving the net-zero emission target by 2050 depends on the factors determining the transition from traditional fossil fuel energy sources to renewables. In connection with this, policymakers have emphasised the need to transition from a linear to a circular economy. In this paper, we investigate the effectiveness of the progress towards a circular economy in reducing CO2 emissions and promoting environmental sustainability. To do so, we use annual historical data for a panel of 29 European countries from 2000 to 2020. Using an identification strategy that adopts heteroscedastic-based instrumental variables and addresses endogeneity issues, we find that progress towards a circular economy significantly improves environmental quality via reducing CO2 emissions. Our findings suggest that business strategies promoting recycling and circular economy practices play an important role in environmental sustainability by reducing emissions. 2022 Journal Article http://hdl.handle.net/20.500.11937/89274 10.1002/bse.3229 http://creativecommons.org/licenses/by-nc-nd/4.0/ Wiley-Blackwell fulltext
spellingShingle Hailemariam, Abebe
Erdiaw-Kwasie, Michael Odei
Towards a circular economy: Implications for emission reduction and environmental sustainability
title Towards a circular economy: Implications for emission reduction and environmental sustainability
title_full Towards a circular economy: Implications for emission reduction and environmental sustainability
title_fullStr Towards a circular economy: Implications for emission reduction and environmental sustainability
title_full_unstemmed Towards a circular economy: Implications for emission reduction and environmental sustainability
title_short Towards a circular economy: Implications for emission reduction and environmental sustainability
title_sort towards a circular economy: implications for emission reduction and environmental sustainability
url http://hdl.handle.net/20.500.11937/89274