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The COVID-19 Pandemic and Unsustainable PPE Materials: A Correlation and Causality Analysis

Author

Listed:
  • Konstantinos N. Baltas

    (Finance Group, Essex Business School, University of Essex)

  • Robert Mann

    (Sembcorp UK)

  • Nicholaos C. Baltas

    (Department of Economics, School of Economic Sciences, Athens University of Economics and Business)

Abstract

In this paper, we investigate the economic impact of the COVID-19 pandemic on European and Chinese unsustainable and non-recyclable plastic markets, specifically those used for the production of Personal Protective Equipment (PPE). We explore exogenous economic and commodity price impacts on polypropylene, acrylonitrile and polyvinyl-chloride, via VECM and Granger causality analysis, with the results remaining robust under testing. We find that price shocks from rubber and EUROSTOXX are significantly correlated with PPE materials, to a greater extent than crude oil, unexpectedly relating price declines in PPE materials to factors beyond medical demand. This will aid a policymakers and industry understand the factors that affect the price of unsustainable and non-recyclable PPE materials, respond to the need for pandemic PPE provision and reduce the potential environmental impact of future pandemics.

Suggested Citation

  • Konstantinos N. Baltas & Robert Mann & Nicholaos C. Baltas, 2024. "The COVID-19 Pandemic and Unsustainable PPE Materials: A Correlation and Causality Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(6), pages 1651-1671, June.
    • Handle: RePEc:kap:enreec:v:87:y:2024:i:6:d:10.1007_s10640-024-00870-1
    DOI: 10.1007/s10640-024-00870-1
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    References listed on IDEAS

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    More about this item

    Keywords

    Pandemics; PPE; Plastics; Polymers; Sustainability; Commodity markets; VECM; Causal Inference;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • I10 - Health, Education, and Welfare - - Health - - - General
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

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