1. Endogeneity and other problems in curvilinear income-waste response function estimations.
- Author
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Schneider, Nicolas
- Subjects
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WASTE paper , *SOLID waste , *MEASUREMENT errors , *ELASTICITY (Economics) , *KUZNETS curve , *MATHEMATICAL forms - Abstract
Socio-ecological theories have long been in search of general principles to characterise anthropogenic activity-environmental change dynamics. Besides allowing for more flexible hypothesis testing, stochastic-extended IPAT and ImPACT baselines opened the door to multiple environmental applications in which solid waste generation took a growing stage. This paper surveys Waste Kuznets Curve's original foundations and underlines why the nature and shape of the hypothetical curvilinear income-waste response function tend to compare to a "black-box". It then stresses why diverging conclusions are linked to heterogeneous estimators' choices differing in their statistical assumptions and powers; whereas generic patterns hardly emerge (e.g., income elasticities of waste generation vary even when the mathematical functional form does not; population elasticities are sensitive to time-varying data and income groups). Next, we identify persisting biases of endogeneity which threaten the internal validity of WKC conclusions, if uncontrolled for (e.g., simultaneity, waste measurement errors and garbage policy confounding effect); along with other identification problems including within-panel heterogeneity with systematic slope variations and cross-sectional and spatially dependent income series. Although we propose a set of theoretically justified instrumental variables to exogenously predict income levels and ensure unbiased elasticities, we also detect and underline that additional threats to external invalidity do play out in practice (e.g., asymmetric geographical coverage and bias of case study selection due to environmental data constraints; missing policy-realm; within-waste heterogeneity hidden by widely aggregated indicators; and a non-systematic treatment of the technological effect). All prevent the waste literature from converging and should be considered by future empirical assessments. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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