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<p>This paper presents a novel approach by examining the effects of inflation instability on municipal solid waste generation (MSWG) across 30 European countries over the period 1995–2021. We employed data from 30 European countries, which are characterized by stable inflation rates and high environmental awareness, and divided these countries into two groups: a financially developed group and a financially less developed group. This division allows us to accurately test the relationship. Per capita waste generation for all groups decreases to a specific inflation point and then increases with inflation instability. Contrary to EKC, the waste-inflation tradeoff curve is convex. These breaking points for financially developed and financially less developed groups are 2% and 18%, respectively. Environmental taxes decrease the amount of MSWG, but the effects of environmental taxes and inflation instability on MSWG are negligible. An increase in per capita income in the financially less developed countries leads to a decrease in the amount of MSWG, and EKC is somewhat valid for these countries. Moreover, industrialization and unemployment decrease the amount of MSWG for all groups. Even though literature on waste generation during the COVID-19 pandemic does not provide precise findings, a systematic review demonstrates an increase in MSWG due to home cooking, online shopping, and medical waste. However, our findings indicate that an increase in solid waste was observed during the COVID-19 pandemic. Therefore, policymakers should be aware of the importance of long-term macroeconomic stability, which is crucial for maintaining environmental quality. Moreover, market efficiency should be employed to conserve resources, mitigate environmental degradation, and remove market failure. Additionally, investments in waste management and recycling technologies help decrease inflation instability and MSWG. Lastly, municipal waste managers, environmental engineers, and sustainability consultants can utilize our findings to more accurately anticipate fluctuations in waste generation during periods of economic instability.</p>

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Does inflation instability urge solid waste generation? Evidence from European countries

  • 期刊论文

  • 发表日期：

    2025年8月22日

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  • Hunkar Guler,
  • Okyay Ucan,
  • Ilhan Ozturk

摘要

This paper presents a novel approach by examining the effects of inflation instability on municipal solid waste generation (MSWG) across 30 European countries over the period 1995–2021. We employed data from 30 European countries, which are characterized by stable inflation rates and high environmental awareness, and divided these countries into two groups: a financially developed group and a financially less developed group. This division allows us to accurately test the relationship. Per capita waste generation for all groups decreases to a specific inflation point and then increases with inflation instability. Contrary to EKC, the waste-inflation tradeoff curve is convex. These breaking points for financially developed and financially less developed groups are 2% and 18%, respectively. Environmental taxes decrease the amount of MSWG, but the effects of environmental taxes and inflation instability on MSWG are negligible. An increase in per capita income in the financially less developed countries leads to a decrease in the amount of MSWG, and EKC is somewhat valid for these countries. Moreover, industrialization and unemployment decrease the amount of MSWG for all groups. Even though literature on waste generation during the COVID-19 pandemic does not provide precise findings, a systematic review demonstrates an increase in MSWG due to home cooking, online shopping, and medical waste. However, our findings indicate that an increase in solid waste was observed during the COVID-19 pandemic. Therefore, policymakers should be aware of the importance of long-term macroeconomic stability, which is crucial for maintaining environmental quality. Moreover, market efficiency should be employed to conserve resources, mitigate environmental degradation, and remove market failure. Additionally, investments in waste management and recycling technologies help decrease inflation instability and MSWG. Lastly, municipal waste managers, environmental engineers, and sustainability consultants can utilize our findings to more accurately anticipate fluctuations in waste generation during periods of economic instability.