The Influence of Circular Economy Initiatives on the EU Environmental Goods and Services Sector

The research presented in this article aimed to analyze the impact of circular economy initiatives on the European Union environmental goods and services sector. Data from the Eurostat databases were used to conduct the research. Validation of the five re-search hypotheses involved the formulation of two regression equations: the first one focused on innovation and recycling performance indicators, the second equation fo-cused on circular-economy indicators. Both models were estimated using country fixed-effects regression with Driscoll–Kraay standard errors to ensure robust inference. The regression model was selected based on the Hausman and F-test, but tests for au-tocorrelation, heteroscedasticity and multicollinearity were performed. The main findings, as the results suggest, refer to the central role of private investment in circu-lar sectors and of resource productivity, both exerting positive and significant effects on the EGSS. The material footprint also shows a positive effect but in contrast, the circular material use rate does not display a significant impact, indicating that in-creases in the share of recycled materials do not automatically translate into greater economic value.