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

Author

Listed:
  • Pedro Cerqueira

    (CeBER - Centre for Business and Economics Research)

  • Elias Soukiazis

    (CeBER - Centre for Business and Economics Research)

  • Sara Proença

    (CERNAS/ESAC, Polytechnic Institute 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.

Suggested Citation

  • Pedro Cerqueira & Elias Soukiazis & Sara Proença, 2018. "The Cycle of recycling and sustainable development. Evidence from the OECD Countries," CeBER Working Papers 2018-07, Centre for Business and Economics Research (CeBER), University of Coimbra.
  • Handle: RePEc:gmf:papers:2018-07
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    More about this item

    Keywords

    recycling; economic development; simultaneous equation system; panel data.;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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