Abstract
The price of oil has a great influence on prices of recycled plastics and, therefore, plastic recycling efforts. Here, we analyze the effects of the ongoing COVID-19 pandemic on crude oil price and how this, in turn, is likely to affect the degree of plastic recycling that takes place. Impulse response functions and variance decompositions, calculated from the structural vector autoregression, suggest that changes in crude oil prices are key drivers of the price of recycled plastics. The findings highlight that because plastics are made from the by-products of oil, falling oil prices increase the cost of recycling. Therefore, the price of recycled plastics should be supported using taxes while encouraging sustained behavioral changes among consumers and producers to selectively collect and recycle personal protective equipment so that they do not clog our landfills or end up in our water bodies as plastic waste.
Highlights
When the first cases of COVID-19 were identified in China in December 2019/January 2020, and the cases continued to expand across all parts of the world, few anticipated the speed and magnitude of the impact of this event on the global economy
We provide a review on crude oil and recycled plastic products prices relations that have Table 1
The COVID-19 pandemic, which led to the unprecedented production of face masks, which are made from plastic coupled with all-time low oil demand, has once again triggered efforts to shore up international commitments to reduce plastic waste leakage into the natural environment, especially the marine environment
Summary
When the first cases of COVID-19 were identified in China in December 2019/January 2020, and the cases continued to expand across all parts of the world, few anticipated the speed and magnitude of the impact of this event on the global economy. Besides crippling plastic waste collection and sorting in many countries due to social distancing and concern about waste pickers’ health, COVID-19 will likely affect global plastic recycling through mass production of personal protective equipment (PPEs). It is important that plastic waste, including face masks, should be properly collected and recycled so that they do not end up in our natural environments, especially in the marine environment. LoInwaedr dthiteioonil, pthriecep,ltuhnegleowinecrrtuhdeeporiicleporficreecayscsloecdiapteladstwici,tthheClOesVsIpDr-o1f9iitsapbuletttihnegrfeucrytchleinrgdporwoncewssarbdecpormesessu.rIenoanddthiteioanlr,etahdeypllouwngperiincecroufdfoesosiill pfurieclefaesesdosctioactkeds, wwihthichCrOeVduIDce-1s9thise pcoustttisnogf fpurrothdeurcidnogwvnirwgainrdrepsrines,swuhreicohnisthaenoaltrheeardcyhalollwenpgreicfeoropf lfaosstsiicl frueceyl cfeliendgst[o12ck].s, which reduces the costs of producing virgin resin, which is another challengeWfoerpprloavsitdiceraecryecvliienwg [o1n2]c.rude oil and recycled plastic products prices relations that have been identified in the literature, as well as some of their industry focus, methods, and key results. We provide a review on crude oil and recycled plastic products prices relations that have Table 1. Literabteuerenriedveienwtifoinedoiilnanthdeplriitmeraartyuarne,dassecwoenldlaarsyspolamsteicopfrtohdeuirctisnpdruicsetsryreflaotciounss, .methods, and key Industry Focus resultDs.aTtaable 1 provides a suMmemthaordy of them
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