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The Cycle of recycling and sustainable development. Evidence from the OECD Countries

Pedro Cerqueira (), Elias Soukiazis () and Sara Proença ()
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Sara Proença: CERNAS/ESAC, Polytechnic Institute of Coimbra

No 2018-07, CeBER Working Papers from Centre for Business and Economics Research (CeBER), University of Coimbra

Abstract: The aim of this study is to analyse the circular linkages between recycling and economic development, where renewable energy plays an additional role in this process. We use a two-equation model, which describes a cumulative causation process with feedback effects, where recycling (among other growth inducing factors) is assumed to be important for sustainable economic development (given by the Human Development Index) and vice-versa. The system of simultaneous equations is estimated by 3sls, both in a static form and introducing dynamics into the model, for a panel of 28 OECD countries over the period 2004-2015. The empirical evidence suggests a strong relationship between the economic development level and the recycling rate with feedback effects, supporting the idea of a circular cumulative causation process driven mostly by higher human capital skills and, to a lesser extent, by innovation. Atmospheric pollution also stimulates the recycling process.

Keywords: recycling; economic development; simultaneous equation system; panel data. (search for similar items in EconPapers)
JEL-codes: C51 F43 O44 Q56 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2018-07
New Economics Papers: this item is included in nep-env and nep-knm
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