Cross-country evidence on Environmental Kuznets Curve in Waste Electrical and Electronic Equipment for 174 Countries

Abstract

Waste electrical and electronic equipment, or e-waste, is rapidly growing worldwide, but the determinants of growth in different countries are not well understood. This paper examines the Environmental Kuznets Curve (EKC) hypothesis at the world and continents levels using e-waste generation as the indicator of environmental degradation. The EKC hypothesis assumes an inverted-U-shaped relationship between economic development and environmental degradation. While frequently used in environmental economics, it has not previously been applied to e-waste worldwide. We have tested the EKC hypothesis for e-waste with an analysis of 174 countries for 2016, using ordinary least squares regression, under inclusion of the control variables population, urbanization, industrialization and access to electricity. The results provide strong support for the hypothesized inverted-U relationship between Gross Domestic Product (GDP) per capita and e-waste per capita at the world level. The EKC was also evidenced at the continent level, except for Asia. In addition, the inverted-U relationship was also found between total GDP and total e-waste generation, in both the world sample of 174 countries and the sub-samples per continent (except Asia). By including the control variables, the fit of the models was improved. All control variables were found to have a statistically significant influence on e-waste generation. In explaining e-waste generation per capita, access to electricity is a particularly strong factor. Regarding total e-waste generation, urbanization is strongly and positively correlated. Population has a positive impact on total e-waste generation, while it has a negative impact on e-waste generation per capita. The EKC was very robustly evidenced across all models studied. E-waste generation initially increases with a growing GDP, but when GDP reaches a certain level (turning point), the generated e-waste quantities do no longer rise despite further economic growth. However, the calculated turning points are at very high GDP levels, and thus most countries worldwide are expected to witness dramatic further e-waste growth if the existing patterns are not radically transformed through effective e-waste prevention measures.