IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i1p836-d1023395.html

The Repercussions of Economic Growth, Industrialization, Foreign Direct Investment, and Technology on Municipal Solid Waste: Evidence from OECD Economies

Author

Listed:
  • Wasi Ul Hassan Shah

    (School of Management, Zhejiang Shuren University, Hangzhou 310015, China)

  • Rizwana Yasmeen

    (School of Economics and Management, Panzhihua University, Panzhihua 617000, China)

  • Muddassar Sarfraz

    (School of Management, Zhejiang Shuren University, Hangzhou 310015, China
    Muddassar Sarfraz is the first corresponding author and Larisa Ivascu is the second corresponding author.)

  • Larisa Ivascu

    (Faculty of Management in Production and Transportation, Politehnica University of Timisoara, 300191 Timisoara, Romania
    Muddassar Sarfraz is the first corresponding author and Larisa Ivascu is the second corresponding author.)

Abstract

The paper’s main objective is to evaluate the repercussions of economic growth, industrialization, and foreign direct investment (FDI) on OECD (Organization for Economic Cooperation and Development) municipal solid waste (MSW) from 2000–2020. Further study includes the role of technology in managing waste activities’ repercussions. We also explore the mediation impact of technology and industrialization with economic growth on the waste of OECD economies. The empirical assessment is carried out in two ways. First, we use graphs to assess the evolution over the years and their association with the core factors. Second, we apply a proper econometrics series to examine the empirical nexuses between the relevant factors. The study finds that economic growth and industrialization evolve over time, increasing the waste of OECD economies. FDI inflow is unfavorable and increases waste production. However, the magnitude impact of FDI is lower than that of economic growth and industrialization. Technological advancement (research and development) is a significant factor in reducing waste generation. The later phase of economic growth is still not advantageous to reduce waste generation in the OECD. The OECD needs to manage industrialization and economic activities through a proper mechanism and tax on such activities that can increase unwanted waste. Further, through technology, the management of waste can be improved.

Suggested Citation

  • Wasi Ul Hassan Shah & Rizwana Yasmeen & Muddassar Sarfraz & Larisa Ivascu, 2023. "The Repercussions of Economic Growth, Industrialization, Foreign Direct Investment, and Technology on Municipal Solid Waste: Evidence from OECD Economies," Sustainability, MDPI, vol. 15(1), pages 1-14, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:1:p:836-:d:1023395
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/1/836/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/1/836/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Carolina Jimenez & Luis Moncada & Diego Ochoa-Jimenez & Wilman-Santiago Ochoa-Moreno, 2019. "Kuznets Environmental Curve for Ecuador: An Analysis of the Impact of Economic Growth on the Environment," Sustainability, MDPI, vol. 11(21), pages 1-11, October.
    2. Vo, Duc, 2019. "The Impact of Foreign Direct Investment on Environment Degradation: Evidence from Emerging Markets in Asia," MPRA Paper 103292, University Library of Munich, Germany.
    3. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
    4. Mingliang Zhao & Yue Gao & Qing Liu & Wei Sun, 2022. "The Impact of Foreign Direct Investment on Urban Green Total Factor Productivity and the Mechanism Test," IJERPH, MDPI, vol. 19(19), pages 1-20, September.
    5. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    6. Pesaran, M. Hashem & Vanessa Smith, L. & Yamagata, Takashi, 2013. "Panel unit root tests in the presence of a multifactor error structure," Journal of Econometrics, Elsevier, vol. 175(2), pages 94-115.
    7. Nguyen Huu Hoang & Csaba Fogarassy, 2020. "Sustainability Evaluation of Municipal Solid Waste Management System for Hanoi (Vietnam)—Why to Choose the ‘Waste-to-Energy’ Concept," Sustainability, MDPI, vol. 12(3), pages 1-20, February.
    8. Ayesha Ashraf & Nadia Doytch & Merih Uctum, 2020. "Foreign direct investment and the environment: disentangling the impact of greenfield investment and merger and acquisition sales," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 12(1), pages 51-73, July.
    9. Munir, Qaiser & Lean, Hooi Hooi & Smyth, Russell, 2020. "CO2 emissions, energy consumption and economic growth in the ASEAN-5 countries: A cross-sectional dependence approach," Energy Economics, Elsevier, vol. 85(C).
    10. Joakim Westerlund, 2005. "New Simple Tests for Panel Cointegration," Econometric Reviews, Taylor & Francis Journals, vol. 24(3), pages 297-316.
    11. Cremiato, Raffaele & Mastellone, Maria Laura & Tagliaferri, Carla & Zaccariello, Lucio & Lettieri, Paola, 2018. "Environmental impact of municipal solid waste management using Life Cycle Assessment: The effect of anaerobic digestion, materials recovery and secondary fuels production," Renewable Energy, Elsevier, vol. 124(C), pages 180-188.
    12. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    13. Yasmeen, Rizwana & Yao, Xing & Ul Haq Padda, Ihtsham & Shah, Wasi Ul Hassan & Jie, Wanchen, 2022. "Exploring the role of solar energy and foreign direct investment for clean environment: Evidence from top 10 solar energy consuming countries," Renewable Energy, Elsevier, vol. 185(C), pages 147-158.
    14. Jiajia Zheng & Pengfei Sheng, 2017. "The Impact of Foreign Direct Investment (FDI) on the Environment: Market Perspectives and Evidence from China," Economies, MDPI, vol. 5(1), pages 1-15, March.
    15. Anh Hoang To & Dao Thi-Thieu Ha & Ha Minh Nguyen & Duc Hong Vo, 2019. "The Impact of Foreign Direct Investment on Environment Degradation: Evidence from Emerging Markets in Asia," IJERPH, MDPI, vol. 16(9), pages 1-24, May.
    16. Jie He, 2007. "Is the Environmental Kuznets Curve hypothesis valid for developing countries? A survey," Cahiers de recherche 07-03, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    17. Shaik Vaseem Akram & Rajesh Singh & Anita Gehlot & Mamoon Rashid & Ahmed Saeed AlGhamdi & Sultan S. Alshamrani & Deepak Prashar, 2021. "Role of Wireless Aided Technologies in the Solid Waste Management: A Comprehensive Review," Sustainability, MDPI, vol. 13(23), pages 1-31, November.
    18. Chiang-Ching Tan & Syvester Tan, 2018. "Energy Consumption, CO2 Emissions and Economic Growth: A Causality Analysis for Malaysian Industrial Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 254-258.
    19. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jian Wang & Yuzhen Zhang & Angelina Kissiwaa Twum & Andrew Osei Agyemang, 2024. "Realizing sustainable development goals in sub‐Saharan Africa: The role of industrialization on consumption‐based carbon emission," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(3), pages 2666-2677, June.
    2. Hani Abu-Qdais & Sarah Al-Omoush & Haniyeh Jalalipour & Abdallah Nassour, 2025. "Towards a Circular Economy in Jordan: Selecting Organic Waste Treatment Options Using a Multi-Criteria Decision-Making Approach," Sustainability, MDPI, vol. 17(5), pages 1-17, March.
    3. Barra, Cristian & Falcone, Pasquale Marcello, 2024. "Environmental performance of countries. Examining the effect of diverse institutional factors in a metafrontier approach," Socio-Economic Planning Sciences, Elsevier, vol. 95(C).
    4. Nadezhda Blagoeva & Vanya Georgieva & Delyana Dimova, 2023. "Relationship between GDP and Municipal Waste: Regional Disparities and Implication for Waste Management Policies," Sustainability, MDPI, vol. 15(21), pages 1-23, October.
    5. Chishti, Muhammad Zubair & Arfaoui, Nadia & Cheong, Calvin W.H., 2023. "Exploring the time-varying asymmetric effects of environmental regulation policies and human capital on sustainable development efficiency: A province level evidence from China," Energy Economics, Elsevier, vol. 126(C).
    6. Oliver Kovacs, 2025. "The interdisciplinarity of degrowth: cross-fertilising disciplines for well-being," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 72(2), pages 1-38, December.
    7. Konstantinos Tsimnadis & Grigorios L. Kyriakopoulos & Garyfallos Arabatzis & Stefanos Leontopoulos & Efthimios Zervas, 2023. "An Innovative and Alternative Waste Collection Recycling Program Based on Source Separation of Municipal Solid Wastes (MSW) and Operating with Mobile Green Points (MGPs)," Sustainability, MDPI, vol. 15(4), pages 1-18, February.
    8. Kovács, Olivér, 2025. "A minőségi növekedés felé - a nemnövekedés értékelése [The road to qualitative growth: Revisiting the concept of degrowth]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 59-91.
    9. Muhammad Zaheer Akhtar & Khalid Zaman & Muhammad Azhar Khan, 2024. "Governance, foreign investment, and growth: the impact of governance indicators, foreign direct investment, economic expansion, and industrialization on carbon emissions," SN Business & Economics, Springer, vol. 4(12), pages 1-25, December.
    10. Marius Pislaru & Ciprian Sorin Vlad & Larisa Ivascu & Iulia Ioana Mircea, 2024. "Citizen-Centric Governance: Enhancing Citizen Engagement through Artificial Intelligence Tools," Sustainability, MDPI, vol. 16(7), pages 1-17, March.
    11. Le Thanh Ha, 2025. "Deploying green macroprudential policies to promote environmental health: new findings from panel VAR for international database," Environment Systems and Decisions, Springer, vol. 45(3), pages 1-21, September.
    12. George E. Halkos & Panagiotis-Stavros C. Aslanidis, 2024. "How Waste Crisis Altered the Common Understanding: From Fordism to Circular Economy and Sustainable Development," Circular Economy and Sustainability, Springer, vol. 4(2), pages 1513-1537, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khan, Anwar & Chenggang, Yang & Hussain, Jamal & Kui, Zhou, 2021. "Impact of technological innovation, financial development and foreign direct investment on renewable energy, non-renewable energy and the environment in belt & Road Initiative countries," Renewable Energy, Elsevier, vol. 171(C), pages 479-491.
    2. Amsalu K. Addis, 2026. "The impact of renewable energy on CO2 emissions in Middle Eastern and BRICS economies," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-20, December.
    3. Ali, Qamar & Yaseen, Muhammad Rizwan & Anwar, Sofia & Makhdum, Muhammad Sohail Amjad & Khan, Muhammad Tariq Iqbal, 2021. "The impact of tourism, renewable energy, and economic growth on ecological footprint and natural resources: A panel data analysis," Resources Policy, Elsevier, vol. 74(C).
    4. Adolfo Maza & Paula Gutiérrez-Portilla, 2022. "Outward FDI and exports relation: A heterogeneous panel approach dealing with cross-sectional dependence," International Economics, CEPII research center, issue 170, pages 174-189.
    5. Han, Guixin & Cai, Xuesen, 2024. "The linkages among natural resources, sustainable energy technologies and human capital: An evidence from N-11 countries," Resources Policy, Elsevier, vol. 90(C).
    6. Peiqian Liu & Qingquan Jiang & Zia Ur Rahman, 2026. "Exploration of the Links Between FDI and Economic Growth in the Host Belt & Road Countries: Considering the Role of Human Capital," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(1), pages 2968-2994, February.
    7. Herzer, Dierk, 2025. "The impact of government-funded renewable energy R&D on its consumption," Journal of Policy Modeling, Elsevier, vol. 47(5), pages 903-918.
    8. Naib Alakbarov & Murat Gündüz & Mahmut Ünsal Şaşmaz, 2025. "Exploring the link between economic growth, energy consumption, and environmental pollution in G20," Natural Resources Forum, Blackwell Publishing, vol. 49(2), pages 1445-1461, May.
    9. Dong, Kangyin & Sun, Renjin & Li, Hui & Liao, Hua, 2018. "Does natural gas consumption mitigate CO2 emissions: Testing the environmental Kuznets curve hypothesis for 14 Asia-Pacific countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 419-429.
    10. Chukwuemeka Chinonso Emenekwe & Robert Ugochukwu Onyeneke & Chinedum Uzoma Nwajiuba & Ifeoma Quinette Anugwa & Obioma Uchenna Emenekwe, 2025. "Determinants of consumption-based and production-based carbon emissions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(5), pages 10303-10339, May.
    11. Benedette Nneka Okezie & Tobechi Faith Agbanike & Nwaonuma Douglas Nnachi & Nkama Nnachi Otta & Chinazaekpere Nwani & Beatrice Chinyere Eneje & Ijeoma Perpetual Onuoha & Hilary Ikechukwu Nnam, 2025. "Does fiscal burden impede green transition? Income, taxation, clean energy, and ecological sustainability in sub‐Saharan Africa," Natural Resources Forum, Blackwell Publishing, vol. 49(1), pages 177-196, February.
    12. Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2023. "Inclusive Economic Growth: Relationship between Energy and Governance Efficiency," Energies, MDPI, vol. 16(6), pages 1-16, March.
    13. Hamit-Haggar, Mahamat, 2012. "Greenhouse gas emissions, energy consumption and economic growth: A panel cointegration analysis from Canadian industrial sector perspective," Energy Economics, Elsevier, vol. 34(1), pages 358-364.
    14. Ansari, Mohd Arshad, 2022. "Re-visiting the Environmental Kuznets curve for ASEAN: A comparison between ecological footprint and carbon dioxide emissions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    15. Konstantin Sommer & Henri L.F. de Groot & Franc Klaassen, 2022. "The effects of market integration on pollution: an analysis of EU enlargements," Tinbergen Institute Discussion Papers 22-039/VI, Tinbergen Institute, revised 21 Mar 2023.
    16. Fatima Sharif & Ihsanullah Hussain & Maria Qubtia, 2023. "Energy Consumption, Carbon Emission and Economic Growth at Aggregate and Disaggregate Level: A Panel Analysis of the Top Polluted Countries," Sustainability, MDPI, vol. 15(4), pages 1-18, February.
    17. Kangyin Dong & Xiucheng Dong & Qingzhe Jiang, 2020. "How renewable energy consumption lower global CO2 emissions? Evidence from countries with different income levels," The World Economy, Wiley Blackwell, vol. 43(6), pages 1665-1698, June.
    18. Sahrish Saeed & Muhammad Sohail Amjad Makhdum & Sofia Anwar & Muhammad Rizwan Yaseen, 2023. "Climate Change Vulnerability, Adaptation, and Feedback Hypothesis: A Comparison of Lower-Middle, Upper-Middle, and High-Income Countries," Sustainability, MDPI, vol. 15(5), pages 1-25, February.
    19. Namahoro, J.P. & Nzabanita, J. & Wu, Q., 2021. "The impact of total and renewable energy consumption on economic growth in lower and middle- and upper-middle-income groups: Evidence from CS-DL and CCEMG analysis," Energy, Elsevier, vol. 237(C).
    20. Shahbaz, Muhammad & Nwani, Chinazaekpere & Bekun, Festus Victor & Gyamfi, Bright Akwasi & Agozie, Divine Q., 2022. "Discerning the role of renewable energy and energy efficiency in finding the path to cleaner consumption and production patterns: New insights from developing economies," Energy, Elsevier, vol. 260(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:1:p:836-:d:1023395. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.