Policy instruments for circular economy: Evidence-Based assessment of sustainable waste management in the UK and Finland

Municipal solid waste (MSW) management has become a critical issue globally, driven by its growing environmental and societal impacts. This study addresses these concerns by identifying key factors across policy, economic, social, and technological dimensions through a systematic review of relevant literature. To assess the effectiveness of these factors, linear regression analysis is applied to examine the role of landfill taxes (policy), oil prices and Gross Domestic Product (economic indicators), education (social factor), and patents (technological innovation) in MSW management. The model is tested using data from the United Kingdom and Finland. The results show that landfill taxes are an effective policy tool in both countries, reducing waste sent to landfills. Based on econometric modeling, we recommend that nations introduce a complementary incineration tax to shift focus from incineration to recycling, invest in research and development of recycling technologies, enhance education and public awareness, monitor the impact of fluctuating oil prices on energy markets and waste management, encourage extended producer responsibility, and design integrated policy frameworks to foster circularity. These findings offer valuable insights for improving waste management practices and advancing circular economy initiatives globally.