Circular economy model in a green development perspective

The circular economy approach is a process that ensures that resources are kept in the economy as long as possible and the amount of waste is kept to a minimum. The primary goal of the circular economy is not to dispose of waste. The main goal of the circular economy is to reuse existing resources. Studies on the circular economy started in the 1990s, and in this period, the relationship between the circular economy and the sustainable development approach was emphasized. It has been concluded that today, in order to ensure the sustainability of developing economies on a global scale, they focus on the concept of circular economy and green growth and determine their waste management strategies in this direction. Therefore, it is seen that all countries aim to realize their environmental policies. In order for countries to design the cyclical economic process effectively, it is of great importance to first understand the relationship between this concept and sustainable development. In addition, the economic and social dimensions of this concept should be evaluated with an inclusive approach.In this context, econometric modeling of the process, which is also known as recyclable and compost waste, renewable energy supply, carbon dioxide emission and recycling economy, which constitutes the important pillars of the circular economy, has been made for 24 OECD member countries (Austria, Belgium, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Japan, Korea, Luxemburg, Netherlands, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, England, America). In the study, the relationship between economic growth and recycled-compost waste rate, carbon dioxide emission, renewable energy supply was analyzed with two different models and the Average Group Dynamic Least Squares Model (DOLSMG), which is one of the panel data analysis methods, to reveal a long-term relationship. For the 24 countries mentioned in the analysis, 16 years of data for the period 1995-2019 were obtained from the OECD official site and used with the STATA 16.0 program for analysis. In the study, inter-unit correlation test and homogeneity test were performed and according to the results obtained it was found appropriate to use the second generation unit root test with cross-section dependence. Stability was tested with the Extended CIPS Panel Unit Root Test and CADF panel unit root test, which are the second generation unit root tests, and then the average group dynamic least squares (DOLSMG) estimator from the second generation panel cointegration tests was applied. According to the findings, 1% increase in the amount of recyclable + compost waste increases economic growth by 0.04%, while an increase in renewable energy supply by 1% reduces economic growth by 0.20%. According to another finding, a 1% increase in renewable energy supply increases carbon dioxide emissions by 0.10%, while an increase in the amount of recyclable and compost waste by 1% increases carbon dioxide emissions by 0.24%. According to the results, the increase in the amount of waste affects the economic growth positively, but it does not cause an increase in the desired rate, and the increase in the renewable energy supply decreases the economic growth. The main reason for this is that renewable energy production is very costly and the data covers 16 years. In case of long-term data, it is estimated that the effect of renewable energy supply on economic growth will be positive. According to the results obtained in another model established in the study, it is seen that both the amount of waste and the renewable energy supply increase the carbon dioxide emission and it is seen that a longer period is needed to clean the emission volume of the air. The green economy made in the circular economy perspective is a costly element that takes a lot of time. In this context, policies to combat climate change should be put forward quickly and effectively. The necessity of the policies created in this context is important for the adoption of the understanding of recycling economy and for taking the right steps.