The　circular　economy　(CE)　has　acquired　significant　interest　for　its　potential　to　contribute　to　sustainable　development　(SD).　The　present　study　utilizes　empirical　methodology,　specifically　panel　data　analysis,　to　examine　the　distinct　effects　and　outcomes　of　the　circular　economy　and　its　associated　factors　within　a　unified　framework.　The　focus　is　on　the　G20　countries　from　2008　to　2021.　We　evaluated　the　influence　of　various　CE　value　sources　(renewable　energy　consumption,　composting　rate,　repair　services　availability,　recycling　rate)　and　a　factor-analysis-derived　measure　of　the　CE　on　economic,　environmental,　and　social　aspects　of　SD.　The　objective　was　to　assess　the　distinct　effects　and　outcomes　of　CE　and　its　components　in　a　unified　framework—the　analysis　utilized　panel　data　from　G20　countries　from　2008　to　2021.　Our　findings　show　a　substantial　influence　of　CE　in　achieving　SD,　with　positive　implications　for　the　economy,　environment,　and　society.　However,　the　impact　of　each　CE　value　source　on　the　SD　dimensions　shows　variation.　While　renewable　energy　consumption　(RENEC)　and　composting　rate　(CR)　lessen　environmental　impact,　recycling　rate　(RR)　shows　no　significant　effect,　and　repair　services　availability　(RSA)　increases　the　Ecological　Footprint　(EFP).　Notably,　RSA　is　the　sole　CE　component,　showing　a　positive　economic　impact　at　the　national　level.　Additionally,　RENEC,　RSA,　and　RR　contribute　to　reducing　the　inflation　rate　(INFR).　Policymakers　should　undertake　detailed　impact　assessments　to　develop　effective,　tailored　strategies　based　on　each　country’s　unique　goals.　The　findings　of　this　study　have　important　policy　implications,　particularly　in　terms　of　emphasizing　targeted　strategies　for　implementing　CE　practices　to　achieve　sustainable　development.　Graphical　Abstract:　(Figure　presented.).　©　The　Author(s),　under　exclusive　licence　to　Springer-Verlag　GmbH　Germany,　part　of　Springer　Nature　2024.