Measuring Circularity and Sustainability in Southern Europe: A Comparative Empirical Analysis of Portugal, Spain, Italy, and Greece

Abstract

This study empirically examines the relationship between economic circularity and environmental performance in four Southern European countries: Portugal, Spain, Italy, and Greece. Using secondary data from Eurostat (2014–2022), it investigates three core hypotheses: (i) the association between the Circular Material Use Rate (CMUR) and per capita CO₂ emissions; (ii) the impact of public environmental expenditure on circular performance; and (iii) differences in circularity across countries. The results confirm a negative and statistically significant relationship between CMUR and CO₂ emissions, as well as a positive association between public expenditure on environmental protection (PEEP) and circularity levels. Contrary to the initial assumption, Italy and Greece exhibited higher average circularity rates than Portugal and Spain. These findings underscore the relevance of the circular economy as a climate mitigation tool and highlight the critical role of public policy in fostering sustainable practices. Furthermore, they challenge the notion of regional homogeneity, emphasising the need for tailored national strategies that reflect institutional and economic specificities. The study’s limitations – particularly the restricted sample size and absence of longitudinal analysis – suggest avenues for future research aimed at deepening the understanding of structural and policy-related dynamics that shape circular economy implementation across the European Union (EU).