From linear to circular: the impact of economic policies and technological innovations on greenhouse gas emissions in the Netherlands

Abstract The Netherlands, recognized as a leader in promoting circular economy principles, is actively implementing laws, incentives, and public–private collaborations to reduce raw material consumption by minimizing extraction and encouraging sharing and reuse. Emphasizing the durability and extend...

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Main Authors: Qamar Abbas, Muhammad Imran, Abdul Sattar
Format: Article
Language:English
Published: BMC 2025-05-01
Series:Carbon Balance and Management
Subjects:
Online Access:https://doi.org/10.1186/s13021-025-00297-1
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author Qamar Abbas
Muhammad Imran
Abdul Sattar
author_facet Qamar Abbas
Muhammad Imran
Abdul Sattar
author_sort Qamar Abbas
collection DOAJ
description Abstract The Netherlands, recognized as a leader in promoting circular economy principles, is actively implementing laws, incentives, and public–private collaborations to reduce raw material consumption by minimizing extraction and encouraging sharing and reuse. Emphasizing the durability and extended use of materials and goods is crucial in this transition. This study investigates the long-term and causal impacts of circular economy practices, technological innovation, environmental tax policies, economic instability, and industrialization on greenhouse gas (GHG) emissions in the Netherlands, covering the period from the first quarter of 2010 to the fourth quarter of 2022. Employing advanced econometric techniques, including the bounds test of co-integration, autoregressive distributed lag models, wavelet coherence analysis, and gradual shift causality tests, the study reveals that circular economy practices, technological advancements, and environmental taxation significantly reduce GHG emissions in both the short-run and the long-run. Conversely, economic instability and industrialization are found to contribute positively to GHG emissions. The wavelet coherence analysis further highlights the substantial interplay between GHG emissions and the independent variables studied. Based on these findings, the study underscores the need for the Netherlands to intensify efforts in reducing GHG emissions, curbing the use of virgin materials in construction, and investing in recycling technologies to advance its circular economy goals.
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spelling doaj-art-d034d38426d3470bb7bd150f5e7cb5b42025-08-20T02:33:24ZengBMCCarbon Balance and Management1750-06802025-05-0120112210.1186/s13021-025-00297-1From linear to circular: the impact of economic policies and technological innovations on greenhouse gas emissions in the NetherlandsQamar Abbas0Muhammad Imran1Abdul Sattar2School of Business, Hengxing University QingdaoSchool of Business, Hengxing University QingdaoBahria Business School, Bahria University IslamabadAbstract The Netherlands, recognized as a leader in promoting circular economy principles, is actively implementing laws, incentives, and public–private collaborations to reduce raw material consumption by minimizing extraction and encouraging sharing and reuse. Emphasizing the durability and extended use of materials and goods is crucial in this transition. This study investigates the long-term and causal impacts of circular economy practices, technological innovation, environmental tax policies, economic instability, and industrialization on greenhouse gas (GHG) emissions in the Netherlands, covering the period from the first quarter of 2010 to the fourth quarter of 2022. Employing advanced econometric techniques, including the bounds test of co-integration, autoregressive distributed lag models, wavelet coherence analysis, and gradual shift causality tests, the study reveals that circular economy practices, technological advancements, and environmental taxation significantly reduce GHG emissions in both the short-run and the long-run. Conversely, economic instability and industrialization are found to contribute positively to GHG emissions. The wavelet coherence analysis further highlights the substantial interplay between GHG emissions and the independent variables studied. Based on these findings, the study underscores the need for the Netherlands to intensify efforts in reducing GHG emissions, curbing the use of virgin materials in construction, and investing in recycling technologies to advance its circular economy goals.https://doi.org/10.1186/s13021-025-00297-1Circular economyGreenhouse gases emissionsTechnological innovationEnvironmental Tax PolicyWavelet coherence analysis
spellingShingle Qamar Abbas
Muhammad Imran
Abdul Sattar
From linear to circular: the impact of economic policies and technological innovations on greenhouse gas emissions in the Netherlands
Carbon Balance and Management
Circular economy
Greenhouse gases emissions
Technological innovation
Environmental Tax Policy
Wavelet coherence analysis
title From linear to circular: the impact of economic policies and technological innovations on greenhouse gas emissions in the Netherlands
title_full From linear to circular: the impact of economic policies and technological innovations on greenhouse gas emissions in the Netherlands
title_fullStr From linear to circular: the impact of economic policies and technological innovations on greenhouse gas emissions in the Netherlands
title_full_unstemmed From linear to circular: the impact of economic policies and technological innovations on greenhouse gas emissions in the Netherlands
title_short From linear to circular: the impact of economic policies and technological innovations on greenhouse gas emissions in the Netherlands
title_sort from linear to circular the impact of economic policies and technological innovations on greenhouse gas emissions in the netherlands
topic Circular economy
Greenhouse gases emissions
Technological innovation
Environmental Tax Policy
Wavelet coherence analysis
url https://doi.org/10.1186/s13021-025-00297-1
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