An integrated approach of PCA and PROMETHEE in spatial assessment of circular economy indicators.

In order to ensure environmental sustainability, reducing the consumption of renewable resources, finding adequate substitutes for non-renewable resources, and reducing the generation of waste and pollution are necessities. The concept of circular economy one of the possible and good responses to improve the sustainability of the system, as it places particular emphasis on the reduction, reutilization and recycling of its elements. The paper presents a comparative analysis of the circular economy development in European Union countries based on the dataset encompasses 11 indicators, covering the seven-year period with biennial data. The analysis was performed using the integrated approach of the Principal Component Analysis and PROMETHEE with the aim of creating a composite index as a measure of the development of the circular economy at the national level. The ranking outcomes indicate that during the observed period Germany has the most developed circular economy, followed by the Netherlands, France and Austria. Additionally, the results of the research clearly indicate the positive correlation between the development of circular economies at the national level and the socio-economic development of the country, while progress in the circular economy has no immediate impact on environmental sustainability, but the effects are realized subsequently, with the intensity of the relationship increasing in two-year lag periods.