Assessment of circular economy in the Baltics

Abstract

Research purpose. The purpose of the current research is to determine the factors of a circular economy and assess their importance in the Baltic States. In other words, the main aim of the article is to highlight the factors of a circular economy and evaluate their significance. Design / Methodology / Approach. In order to achieve the research goal, panel regression modelling was employed. Panel regression was used in order to assess the importance of the circular economy indicators. Findings. The research revealed that the waste of electrical and electronic equipment has the most significant potential for increased circular material use rate in the Baltic States. All electrical and electronic equipment should be designed so that it would be possible to repair and reuse it to extend the product life cycle and reduce the carbon footprint. Reducing greenhouse gas emissions in conjunction with increasing the usage of renewable energy could increase resource productivity and domestic material consumption (DMC) and ensure Baltic States’ independence in the energy sector through offshore wind farms that have the region’s most considerable potential. Originality/Value/Practical implications. There is a lack of research focused on circular economy development using panel data modelling conducted in the Baltics. Most of the previous studies were focused on the European Union as whole or individual countries. This study presents a deeper analysis of circular economy development in the Baltic States.