The role of the institutional supply chain in the transition from the linear to the circular paradigm: The Italian case

Previous studies have highlighted the role of institutions among the drivers that favour the transition from the linear to the circular economy model. However, these studies tend to exclude the institutional supply chain and its correct functioning (i.e., ‘good administration’). Thus, this study aims to analyse the effect of good administration on the two main phases of the circular economy paradigm in the waste sector in Italy. In this context, we propose an original good administration index (GAI) of public administration whose purpose is to capture the financial and organisational components of public administration staff. The analysis was conducted on data from 103 Italian provinces from 2008 to 2019. The results show that the GAI is key for achieving the upstream and downstream goals of the circular economy in the waste sector.