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Do recycling and regulations influence trade-adjusted resource consumption? Exploring the role of renewable energy

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  • Zheng, Lei
  • Hao, Jia
  • Ban, Nannan

Abstract

Sustainable resource consumption and environmental sustainability are core objectives of every economy. Particularly, the United States (US) has shown enormous growth in material and resource usage. However, few studies have investigated the influence of recycling on the trade-adjust material footprint. Therefore, this study employed the bootstrap autoregressive distributed lag model to evaluate the dynamic impact of recycling, renewable energy, and regulation on the consumption-based material footprint in the US from Q1-1994 to Q4-2019. The long-run findings exhibit that recycling significantly reduces resource consumption. Besides, ecological regulations and renewable energy significantly mitigate the per capita material footprint. The short-run estimates are also compatible with long-run findings but smaller in coefficient magnitude. The negative and significant coefficient of error correction term adjusts the model with 24.8% speed quarterly towards the steady state in case of any disturbance from the short-run. The granger causality test affirms the bi-directional causal relationship between the model's variables. The findings suggest that policymakers should design sustainable strategies that encourage recycling and renewable energy consumption with stringent control to stimulate resource efficiency.

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  • Zheng, Lei & Hao, Jia & Ban, Nannan, 2023. "Do recycling and regulations influence trade-adjusted resource consumption? Exploring the role of renewable energy," Resources Policy, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:jrpoli:v:81:y:2023:i:c:s0301420723001095
    DOI: 10.1016/j.resourpol.2023.103401
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