Development of the Waste Management Composite Index Using DEA Method as Circular Economy Indicator: The Case of European Union Countries

Abstract

This paper aims to develop a Waste Management Composite Index (WMCI) as a Circular Economy (CE) indicator by using a DEA-based model. This approach will enable making a mutual comparison, i.e. comparative analysis of the countries CE performances. Even though many countries have already accomplished a great deal in terms of the CE, there are still numerous of those that have not progressed much, finding themselves at the very beginning of the process. For that matter, the development of the indicators would help monitor changes during the transition process and while shifting to the CE model. In this paper, a tailor-made DEA model is created to fit a two-layer composite index WMCI comprising of eight relevant sub-indicators. The model is applied for the comparison of the 26 European Union (EU) countries. The obtained results could help maintain the countries informed about their position on the ranking list, alongside the level of their implementation of the CE with guidelines and recommendations for possible future development in this area.