Towards a Circular Economy: Analyzing Food Waste Convergence in Indonesia’s Municipalities

Mandasari Putriesti

Research on World Agricultural Economy, 2025, vol. 6, issue 3

Abstract: To date, food waste remains a critical issue in most developing countries, where capacities differ among municipalities. This study examines whether food waste convergence occurs among Indonesian municipalities that experience persistent disparities in infrastructure, governance, and fiscal capacity. Using a β-convergence framework (unconditional and conditional) and panel data from 345 observations (2020–2023), this study examines whether areas with a higher initial level of food waste reduce food waste more rapidly, whether socioeconomic characteristics influence convergence, and whether convergence patterns differ across municipal classifications. Results show strong evidence of convergence and confirm that convergence persists even after controlling for GRDP per capita, poverty rate, and recycling rate. However, not all those factors significantly affect convergence, suggesting the influence of institutional and behavioral dynamics. The study also identifies heterogeneity in convergence speeds, where municipalities with higher population densities, larger environmental budgets, or stronger development indicators converge more quickly than their counterparts. This study presents a novel application of β-convergence modeling for municipal food waste analysis, offering empirical insights into circular economic development from a local perspective. Its policy importance lies in identifying where convergence is lacking and why. These findings offer a diagnostic tool to help local governments allocate resources more effectively and prioritize lagging municipalities in food waste reduction efforts.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:reowae:412779

DOI: 10.22004/ag.econ.412779

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