Catching-up in waste management. Evidence from the EU

Abstract

This work tests for the presence of convergence in the main municipal solid waste disposal choices across EU countries over the years 1995–2010. We believe this is a relevant exercise, considering that in the last two decades the waste sector has experienced a profound transformation at the European level. In this context, β and σ tests of convergence can tell us more about the distribution of these different rival choices of waste disposal, by assessing on the one hand the presence of convergence and, on the other hand, the role played by environmental policy and green technological change in driving convergence. Our regression results suggest that conditional beta convergence is substantial for both recycling and incineration. For the case of recycling, this convergence is faster for countries characterised by a technological endowment in recycling technologies and stringent waste policies. Finally, heterogeneity across countries (sigma convergence) appears to decrease over time.