Trang 9 What are some potential solutions to improve the European Union''''sdependency on non-renewable energy sources?Our research includes 5 variables which are: Real GDP per capita, reso
FOREIGN TRADE UNIVERSITY FALCULTY OF INTERNATIONAL ECONOMICS - ECONOMETRICS REPORT ASSIGNMENT FOR MIDTERM EXAM Topic: ANALYZING THE DEPENDENCY OF ECONOMIC GROWTH ON INDICATORS FOR A CIRCULAR ECONOMY IN THE EUROPEAN UNION Group: 12 Class: KTEE218(GD2-HK1-2223).1 Intake: K60 Instructor: Ms Nguyen Thuy Quynh Ha Noi, December 2022 INDIVIDUAL ASSESSMENT No Name Student ID Contribution level La Huong Ly 2112450053 20% Nguyen Do Nhat Minh 2112450058 20% Pham Quang Minh 2112450065 20% Nguyen Minh Phuong 2113450027 20% Nguyen Minh Trang 2112450094 20% Bonus point 1% TABLE OF CONTENT INDIVIDUAL ASSESSMENT .2 TABLE OF CONTENT ABSTRACT INTRODUCTION SECTION I: OVERVIEW OF THE TOPIC Literature review .9 1.1 The relationship between the Circular Economy Indicators and Economic Growth 1.2 Research gap Theoretical framework (Related economic theories) 10 2.1 Definition and indicators of CE .10 2.2 Impact of circular economy’s indicators on economic growth .11 Research hypotheses 11 SECTION II: METHODOLOGY AND MODEL SPECIFICATION 13 Methodology 13 1.1 Method used to collect data 13 1.2 Method used to analyze data 13 Empirical Model 13 2.1 Model Specification 13 2.2 Variables Description .14 Data .17 3.1 Source of data 17 3.2 Descriptive statistics and variables interpretation 18 3.3 Correlation matrix between variables 19 SECTION III: ESTIMATED MODEL AND STATISTICAL INFERENCES .21 1.Estimated model .21 1.1 Estimation result .21 1.2 Sample regression model 22 Hypothesis testing 22 2.1 Testing the fitness of results compared to expectations 22 2.2 Testing significance of an individual regression coefficient 24 2.3 Testing overall significance 25 2.4 Testing the equality of regression coefficients of Resource Productivity and Labor Productivity .26 3.Recommendations based on our findings 26 CONCLUSION 28 REFERENCE 29 APPENDIX 33 ABSTRACT Circular economy (CE), which is defined by the World Economic Forum as “an industrial system that is restorative or regenerative by intention and design” is on the rise of study and practices (Ramakrishnan, M., 2022) It is believed to minimize environmental harm, reduce waste from the traditional linear economy and foster the shift to renewable energy, as well as boost business satisfaction through corporate social responsibility In the European Union, circular economy is a development priority and is part of its industrial strategy (Mazur-Wierzbicka, 2021) The purpose of this report is to examine the dependency of economic growth on several indicators for a circular economy within the European Union between 2010 and 2020 To study how four circular economy-related factors, which are resource productivity, labor productivity, trade in recyclable raw materials and recycling rate of municipal waste affect economic growth, researchers carried out quantitative analysis To be more specific, our group collected data of five variables and used Stata software to estimate a pre-constructed model based on academic theories The results produced by the software suggest that three out of four indicators for circular economy have an obvious impact on economic growth in the EU from 2010 to 2020 Afterwards, discussion of findings is presented and recommendations for the application of circular economy indicators to stimulate economic growth in Vietnam are proposed INTRODUCTION Though there is only one planet, by 2050, the world will be consuming as if there were three As the world population continues to grow, there will be an increased demand for natural resources, including water, food, and energy This will result in a greater need for sustainable resources and the use of more renewable sources of energy Global consumption of resources such as biomass, fossil fuels, metals, and minerals are forecast to double over the next four decades, while annual trash generation is estimated to rise by 70% by 2050 (OECD (2018), Global Material Resources Outlook to 2060 and World Bank (2018), What a Waste 2.0: A Global Snapshot of Solid Waste Management to 2050) The consumption demands of future generations are crucial to sustainable development The goal of sustainable development is to provide a sufficient living standard for current and future generations, which means that we should use natural resources effectively Many countries throughout the world have adopted a sustainable development model to balance economic growth, environmental preservation, and social welfare The circular economy (CE) is considered one of the best solutions to support sustainable economic growth The Ellen MacArthur Foundation (2012) defines a circular economy as "a system that is restorative and regenerative via planning and design," which is widely supported by many countries and international organizations It replaces the concept of "end of life" materials with the concept of recovery, shifting toward the use of renewable energy, the elimination of harmful chemicals that harm reuse, and the reduction of waste through the design of materials, products, engineering systems, and business models within that system (Kinh tế tuần hoàn - Hướng phát triển bền vững cho doanh nghiệp - Cổng thông tin điện tử Bộ Công Thương) Since resource extraction and processing account for half of total greenhouse gas emissions and more than 90% of biodiversity loss and water stress, the European Green Deal Document continues below Discover more from: Econometrics Trường Đại học Ngoạ… 418 documents Go to course Apparel and Footwear 74 in Vietnam(Full Market… Econometrics 13 ON TAP KINH TE Luong revision Econometrics 46 97% (29) 100% (12) Kinh tế lượng - AAA Class Econometrics 100% (6) Ethics - SDaa 31 17 Econometrics 100% (5) A collection of past exams Econometrics 100% (5) Tut 9.1 trm Econometrics 100% (4) established a coordinated approach for a climate-neutral, resource-efficient, and competitive economy (Plan, A (2011) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions European Commission.) Scaling up the circular economy from pioneers to mainstream economic participants will make a significant contribution to reaching climate neutrality by 2050 and decoupling economic development from resource usage, all while guaranteeing the EU's long-term competitiveness and leaving no one behind To achieve this goal, the EU must accelerate the transition to a regenerative growth model that returns more to the planet than it takes, progress toward keeping resource consumption within planetary boundaries, and thus strive to reduce its consumption footprint and double its circular material use rate in the coming decade According to recent research, implementing circular economy concepts across the EU economy has the potential to improve EU’s GDP by 0.5% by 2030, producing around 700,000 job opportunities (Econometrics, C (2018) Impacts of circular economy policies on the labour market: final report and annexes.) There is also a strong commercial argument for individual companies: because manufacturing enterprises in the EU spend approximately 40% of their revenue on materials, closed loop methods may boost their profitability while preserving them from fluctuation in resource prices Realizing the potential of applying the circular economy in production to the economic development of the EU, our group decided to choose the research topic “Analyzing the Dependency of Economic Growth on Indicators for a Circular Economy in the European Union” The purpose of this research is to investigate whether there is a correlation between economic growth and indicators for a circular economy in 27 countries of the EU in the period of 2013-2019 The following research questions are addressed in this research: Do indicators for a circular economy have a positive or negative effect on economic growth? What is the relationship between indicators for a circular economy and GDP? What are some potential solutions to improve the European Union's dependency on non-renewable energy sources? Our research includes variables which are: Real GDP per capita, resource productivity (the ratio of a country’s GDP to the domestic consumption of materials), labor productivity, trade in recyclable raw materials (imports from intraEU) and recycling rate of municipal waste Those information, materials, and data represented in the research from 2013 to 2019 are derived from secondary data in the form of time series from a trustworthy source - Eurostat Our team applied some theories about economic growth, information about circular economy and utilized Ordinary Least Squares (OLS) method, quantitative methodology as well as tools such as STATA software and Microsoft Excel to analyze the dependency of economic growth on indicators for a circular economy from each origin country to make several adjustments and recommendations for countries in the EU This research has the following structure The first section will cover the literature review, overview of theories about economic growth and previous research Section will provide the methodology and model specification The last section will be our estimation of model and report on the testing of variables Based on those analyses, finally we can draw proposals toward the topic During the process of doing this thesis, we can figure out many conclusions regarding the effects of chosen variables However, limitations are inevitable Thus, we hope to receive your comments and feedback on our work so that we can better our thesis We’d like to thank Ms Quynh for your dedication and careful guidance for us throughout the course SECTION I: OVERVIEW OF THE TOPIC Literature review 1.1 The relationship between the Circular Economy Indicators and Economic Growth Many established researchers have investigated how the circular economy indicators influence economic growth A circular economy has been proven to have a considerable effect on economic growth (Geissdoerfer et al., 2017; Busu et al.,2016; Binswanger, 2009) Other research (Cai, H 2019; George et al., 2015) have come to the conclusion that the productivity of the resources and trade in recyclable materials are closely correlated with economic growth Additionally, while some scholars (Su et al., 2013; Gopal et al., 2013; Cappa et al., 2016) contend that the adoption of renewable energy has a significant impact on economic growth, others (Tantau et al., 2018) emphasize that the recycling rate of municipal rate and real labor productivity are strongly correlated to economic growth From all the empirical studies listed above, the researchers have conducted models to estimate the effect of the CE indicators on the development in the economy of EU countries The models take place in EU countries, which include 27 nations, for the span of 10 years The models in this research are regression models, focusing fully on the impact of each variable on the growth of the economy, using GDP per capita as the dependent variable This is a trusted and objective way to evaluate which indicators are most important, which ones may be ignored, and how these variables interact 1.2 Research gap The main problem of the related research is the 10-year limit of the database of the CE indicators This could be insufficient for macroeconomic factors to provide a precise evaluation for the real GDP in the countries researched Another problem