The Analytical assessment of the relationship between technological aspects of circular economy and smart sustainable cities

Objectives: The study investigates how smart sustainable city and circular economy concepts are interconnected, both through the systemic perspective and quantitative means. Methodology: After the assessment of state of art to highlight the systemic nature of the connection between a smart sustainable city and a circular economy, we analyze the relationship between the two by operationally quantifying both concepts on the macro level and the level of single components of smartness of circularity. Regression analysis and principal component analysis are adopted as statistical tools. Findings: We find that a significant positive relationship exists between a city’s smartness and circularity. The component of a smart sustainable city that seems the most important for the successful adoption of circular economy initiatives is the presence of an advanced ICT infrastructure. Research limits: Analysis is performed for the set of the EU cities. Therefore, the results should not be directly generalizable to the cities outside the EU. Moreover, the indices that operationalize sustainable smartness and circularity are empirically valid but require more in-depth statistical validation. Practical implications: The study suggests that cities’ managers and administrators treat a smart sustainable city concept holistically. For example, circular economy initiatives may have a significant indirect effect on implementing sustainable smart city initiatives. Originality of the study: Although the literature treats the two concepts extensively, no attempts were previously made to quantify the relationship between smart sustainable cities and circular economy. We hope this study will shed additional light on the complex systemic nature of the treated domains.