Income inequality and circular materials use: an analysis of European Union economies and implications for circular economy development

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F23%3A63562458" target="_blank" >RIV/70883521:28120/23:63562458 - isvavai.cz</a>

Result on the web

<a href="https://www.emerald.com/insight/content/doi/10.1108/MD-11-2022-1620/full/html" target="_blank" >https://www.emerald.com/insight/content/doi/10.1108/MD-11-2022-1620/full/html</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1108/MD-11-2022-1620" target="_blank" >10.1108/MD-11-2022-1620</a>

Result language

angličtina

Original language name

Income inequality and circular materials use: an analysis of European Union economies and implications for circular economy development

Original language description

Purpose: The purpose of the research was to evaluate the relationship between income and the recycled materials used in order to rate the business related to circular repair services under the burden of economic development in the countries of the European Union.Design/methodology/approach: The analytical processes explore data from 2010 to 2020. The countries were divided into clusters according to economic maturity (Human Development Index (HDI), real Gross domestic product (GDP) per capita). Subsequently, the relationships were evaluated through the income indicators (for the 13 population groups), and the circular materials use rate indicator. The three indicators decomposed into five specific metrics were employed. The commonly applied characteristics of the descriptive analysis, Pearson&apos;s correlation coefficient and the panel regression analysis were engaged in the investigation.Findings: The results demonstrated the vast disparities between income and circular materials use. In the more economically developed countries, their levels were twice higher as the less-developed countries. However, there is a meaningful positive relationship between them. The greatest attention was paid to the panel regression analysis applied to the relationship between income and circular economy (CE) use. The results showed that in a majority of the cases (different income categories), there is a significant positive relationship. When comparing the outcomes of the regression models between the groups of the countries according to their economic development, a closer relationship was clearly demonstrated in the countries with a lower level of development (Bulgaria, Romania, Croatia, Hungary).Research limitations/implications: Besides the specific strengths, the study also shows some limitations identified mainly on the data side. The latest data on the consumption of circular materials come from 2020, so they do not cover the period related to the pandemic crisis. It is believed that there may have been some changes in income during the pandemic, and they may have harmed CE. Furthermore, there is to note that some limitations occur in the analytical process. The incompleteness of the data can also be included here as certain data is not available; hence, it was estimated directly by the Eurostat statistical authority.Practical implications: At the same time, the following are currently considered among the primary barriers: financial restrictions, insufficient infrastructure, weak government support and obstacles on the global market. Consumers, industry leaders and the government are the most influential stakeholder groups in overcoming barriers. Higher demand for repair services will also initiate further development of business activities in this area at various regional levels. Progress in the repair services economy will continue to require extensive efforts in the future. Systematic coordination of activities at multiple levels of government together with manufacturers, designers, educational institutions, community institutions and individuals will be essential.Social implications: Socioeconomic characteristics such as sex, age and education represent crucial predictors of consumer behavior. Therefore, the authors would like to focus future research on analyzing these characteristics and examine all the conceptual frameworks of consumer behavior and its positioning in detail within CE and the strategies related to the repair service. Discussing this issue through follow-up research will allow for solving complex transformational and political tasks related to the repair service strategies within CE. It will also inspire the discussion frameworks and multidisciplinary solutions to this issue affecting the fields of human geography, sociological, ethnographic and political sciences. Originality/value: In less-developed countries, wage change can have a more substantial impact on the development of the CE. Also, a closer relationship between business in the field of repair services with income and the use of circular materials was manifested in the same way.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50201 - Economic Theory

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2023

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Management Decision

ISSN

0025-1747

e-ISSN

—

Volume of the periodical

neuveden

Issue of the periodical within the volume

neuvedeno

Country of publishing house

GB - UNITED KINGDOM

Number of pages

25

Pages from-to

"nečíslováno"

UT code for WoS article

001016477800001

EID of the result in the Scopus database

2-s2.0-85163665596