Fixed effects models to analyze methane emissions from solid waste and economic growth in 18 Latin American and Caribbean countries (1991-2019)

Abstract

Methane emissions from solid waste landfills (SWL) and those generated by open-air burning and incineration of such waste (SWI) were analyzed, respectively, as a function of GDP per capita in 18 Latin American and Caribbean nations from 1991 to 2019, which allowed testing the environmental Kuznets curve (EKC) hypothesis. For this purpose, econometric models of SWL and SWI were estimated, of the quadratic (GDP2), cubic (GDP3) and quartic (GDP4) type. Control variables such as: level of urbanization, human capital, economic inequality and civil liberties were also used. Fixed effects were applied to each polynomial. The estimates show that there isn't evidence of a statistical relationship between SWL and GDP. For SWI and GDP, the EKC hypothesis test showed an M-shaped curve. Also notable is the loss of civil liberties associated with increases in both emissions, while economic inequality shows opposite effects in SWL and SWI. These results need to be corroborated with other econometric techniques and considering other countries.