Econometric Analysis of Residential Trash Incineration Based on Cross-Sectional Data

Purpose: The objective of this paper is to determine the areas that can be a basis for government regulation to reduce illicit residential trash incineration, thus air pollution as well. Design/Methodology/Approach: We used OLS estimation to examine which factors can have a significant effect on consumer behaviour, so by their regulation the incineration could be reduced. We included 10 explanatory variables in the study, our most important hypotheses were about the effects of material well-being and forestation. Findings: Based on our results, whilst the welfare does not have an effect, the increase in forestation (firewood supply) has a reducing effect on illegal burning, however, it is not among the strongest factors in terms of elasticity. Of the factors examined, the greatest impact is caused by the overcrowding of dwellings: less crowded dwellings are less prone to illegal burning. In addition, power consumption, education, and population density are important variables. Practical Implications: Overall, we can say that state intervention in support of education, the enlargement of the urban environment and the availability of modern energy sources can be effective means of combating illegal trash incineration. We note that our model is based on strong simplifications, so the results can significantly distort reality. More precise and more reliable data is needed to improve the estimation, so we urge that this data be included and published as soon as possible. Originality/Value: As we know residential trash incineration has never been investigated from an economic angle with these kind of variables. Our work might be able to add a new approach to this field of study that highlights the opportunities and weaknesses of this topic and provides an incentive for further research.