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ORIGINAL RESEARCH
From Linear to Circular: Assessing the Influence
of Circular Economy Practices on Business
and Environmental Dynamics
1
School of Logistics and Supply Chain, Sichuan Vocational & Technical College, 629000 Suining, P. R. China
2
Azman Hashim International Business School, Universiti Teknologi Malaysia, 54100 Kuala Lumpur, Malaysia
3
UE Business School, Division of Management and Administrative Sciences, University of Education, Lahore, Pakistan
4
International Business School, Guangzhou City University of Technology, Guangzhou 510080, China
5
Department of Economics, Faculty of Informatics and Management, University of Hradec Kralove,
Hradec Kralove, Czechia
Submission date: 2023-12-27
Final revision date: 2024-02-27
Acceptance date: 2024-03-27
Online publication date: 2024-06-28
Publication date: 2025-01-02
Corresponding author
Ahsan Akbar
International Business School, Guangzhou City University of Technology, 510800, Guangzhou, China
International Business School, Guangzhou City University of Technology, 510800, Guangzhou, China
Pol. J. Environ. Stud. 2025;34(1):755-766
KEYWORDS
TOPICS
ABSTRACT
We are living in an era of transition from linear to circular modeling, where resources are reused
and recycled, which helps to protect the environment. Therefore, the aim of this study is to investigate
the impact of circular economy practices on corporate performance and environmental challenges.
To evaluate the said narrative, we collect data from World Development Indicators. The sample
of the study consists of 25 countries with a 20-year time frame (2000–2020). The regression estimates
provide significant results and support our narrative that circular economy practices enhance
corporate performance and improve the environment. The said findings are further robustly checked
by using alternate proxies for the circular economy, corporate performance, and environment. These
results propose that circular economy practices help to decrease costs, increase profits, initiate
recycling, control pollution, manage waste, and thus contribute to enhancing corporate performance
and providing positive environmental outcomes. These findings are useful for policymakers, academics,
and practitioners. The said stakeholders can use these findings to formulate effective policies that
encourage businesses to adopt circular economy practices, thus contributing to sustainable development
goals.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
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