The nexus of environmental innovation and circularity: Evidence from European economies

ABSTRACT

This paper shows the importance of environmental innovation on the circularity performance of each country that creates favorable conditions to help countries move towards the circular economy. Six measures are used to reflect environmental innovation, including the percentage of enterprises that invest in environmental innovation, the percentage of enterprises implementing environmental innovation activities, the number of ISO 14001 certificates, patents related to environmental innovation, the total R&D personnel and researchers, and the amount of green early-stage investments. We provide empirical evidence that innovation in environmental activities is crucial for an economy’s circularity performance, especially in the long term. Environmental innovation is also an essential enable of circularity.

KEYWORDS:

• environmental innovation
• circularity performance
• economic circularity
• European countries

SUBJECTS:

• G3
• F2
• O16
• C33

Disclosure statement

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

Data availability statement

Data available on request due to privacy/ethical restrictions. https://ec.europa.eu/newsroom/rtd/items/725730

Compliance with Ethical Standards

• Disclosure of potential conflicts of interest

• Research involving Human Participants and/or Animals

• Informed consent

Correction Statement

This article has been corrected with minor changes. These changes do not impact the academic content of the article.

Additional information

Funding

This paper was supported by National Economics University.

Notes on contributors

Nguyen Khac Quoc Bao

Doctor Nguyen Khac Thai Bao received his Ph.D from University of Economics Ho Chi Minh City (UEH). He is currently a lecturer at University of Economics Ho Chi Minh City (UEH). His main research areas are financial economics, macroeconomic analysis, international economics, financial stability, and corporate performance analysis.

Le Thanh Ha

Doctor Le Thanh Ha received his Ph.D in Policy Analysis from National Graduate Institute for Policy Studies. He is currently a lecturer at the Faculty of Economics, National Economics University. His main research areas are digitalization, government issues, international economics, macroeconomic analysis, international economics, financial stability, and corporate performance analysis.