A1424
Title: Causality between waste, recycling and GDP in G-7 countries: A bootstrap Granger non-causality test approach
Authors: Alejandro Alcay - University of Zaragoza (Spain) [presenting]
Antonio Montanes - University of Zaragoza (Spain)
Blanca Simon-Fernandez - University of Zaragoza (Spain)
Abstract: The aim is to contribute to the literature on recycling-waste generation-economic growth causality. Previous results are characterized by their variability, particularly, across sample periods, sample sizes, and model specification. In order to overcome these issues, the causal links between these three variables for the G-7 countries are analyzed using bootstrap Granger non-causality tests with fixed size rolling subsamples. The data used includes annual total urban waste generation, recycling and real Gross Domestic Product (GDP) series. The results prove the importance of accounting for the presence of parameter instability, mainly due to the effect of the Great Recession. Our results encompass previous findings and offer an explanation for varying findings.
