Impact of the circular economy on human development: evidence from Germany

The circular economy has garnered significant consideration due to its ability to contribute to human development. This study presents a comprehensive analysis of the individual effects of four categories of circular economy, namely renewable energy consumption (REC), recycle, reuse, and repair, on human development. For this purpose, we collected time series data of Germany from 1990 to 2021 and applied a dynamic ARDL simulation technique to compile empirical results. The findings show that the REC has positive and significant impact on human development. Reuse and Recycle have an inverse and significant influence on human development in Germany. Whereas human development is neutral to repair. Additionally, the control variables, environmental tax and industrial employment also have negative impacts on human development. Based on the findings, the study suggests that policymakers should design suitable, efficient, and targeted measures to foster the role of each category of circular economy for human development in Germany.Graphical abstractWe examined the impact of various categories of circular economy on human development in Germany. The findings indicate that REC is positively and significantly associated with human development. The repair has a neutral impact on human development as a category of circular economy. The study also finds that reuse and recycling negatively and significantly affect human development in Germany.