LAUSR

Circular Economy Model (CEM) holds the promise to provide an economic benefit while not compromising environmental balance, growth, and competitiveness. The paper presents the proposal of Circular Economy Competitiveness Index (CECI) which measure the development of CEM implementation on country level in areas of social behaviours, business operations, resource management, and innovativeness. CECI combines a catastrophe progression method based on catastrophe theory and principial component analysis into composite index. The paper presents analysis of CECI state and dynamics in EU countries. The model supported with Eurostat data allow to classify the EU countries into four groups based on CEMI dynamic as well as analyse EU traditional regions' competitiveness in context of CE implementation. Additionally, correlation to Global Competitiveness Index (GCI) has been analysed. The paper presents a quantitative reference for evaluating CE competitiveness and offers relevant implications for EU countries' policymakers in relation to the factors determining that competitiveness.