Impact of Material Consumption and Circular Economy on National Income in Europe – Chapter 2

• Published in: RGSA : Revista de Gestão Social e Ambiental 2024-11, Vol.18 (11), p.e09639
• Main Authors: Malatyinszki, Szilárd, Módos-Szalai, Szilvia, Jenei, Szonja, Kerekes, Etelka, Kálmán, Botond Géza
• Format: Article
• Language: English
• ISSN: 1981-982X; 1981-982X
• DOI: 10.24857/rgsa.v18n11-041

Objective: This study investigates resource productivity by exploring the factors that influence it and the strength of their impact using sustainability statistics from Eurostat.   Theoretical Framework: The research analyzes the interdependence between national income and material consumption, with a focus on the paradoxical effects of circular material use on these variables.   Method: Data from bibliographic sources are analyzed using statistical methods, including regression and path models, to assess the relationships between material consumption, national income, and the use of circular materials.   Results and Discussion: The study concludes that national income and material consumption are interdependent, with material consumption directly affecting national income. Notably, the use of circular materials, contrary to expectations, increases material use and decreases national income. The cases of Hungary and the Netherlands are specifically examined to illustrate these findings.   Research Implications: The findings suggest that strategies to increase resource productivity and sustainability performance need to consider the complex and sometimes counterintuitive impacts of circular material use on national income and material consumption.   Originality/Value: This study provides new insights into the relationship between resource productivity, national income, and material consumption, highlighting the unexpected effects of circular material use. It contributes to the broader understanding of sustainability performance, particularly in the context of Hungary and the Netherlands.