Circular Economy and Wind Energy as Drivers of Environmental Sustainability: Evidence From the EU Under the LCC Framework

Abstract

This study examines the validity of the load capacity curve (LCC) hypothesis in European Union (EU) countries between 2010 and 2022 and analyzes the impact of the circular economy (CE) and wind energy on environmental quality (EQ). The analysis, conducted using long-term projections, confirms that there is a U-shaped relationship between economic growth (EG) and EQ and that the LCC hypothesis is valid in the EU context. CE practices improve EQ through resource efficiency and waste prevention, while wind energy contributes to this process with its low-carbon structure. The EU's progressive regulatory framework reinforces these positive effects. The study provides a comprehensive EU-specific perspective by integrating the CE and wind energy with the LCC hypothesis. The EU should strengthen environmental sustainability (ES) by creating more incentives for the CE and renewable energy (RE).