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The Effect of Innovation on Plastic Packaging Waste Generation in the European Union: Does Economic Growth Matter?
Summary
Researchers analyzed panel data from 27 EU countries over 2014–2023 and found that innovation reduces plastic packaging waste generation, and that economic growth amplifies this effect, though the relationship varies between high- and low-waste economies, pointing to the value of combining innovation policy with circular economy strategies.
Abstract Despite innovation being widely promoted as the cornerstone of the circular economy and sustainable growth, plastic packaging waste generation continues to increase in many advanced economies. This study examines the effect of economic growth on the relationship between innovation and plastic waste generation. We employed the dynamic system GMM and Driscoll-Kraay standard error estimators for a dataset of 27 European Union countries over the period 2014-2023. The results show that innovation reduces the generation of plastic packaging waste. Furthermore, the results of the interaction reveal that economic growth amplifies the negative effect in the innovation-plastic waste generation nexus, although generations are heterogeneous across low- and high-generation economies. Thus, policymakers need to develop innovation-based strategies, circular-resource policies, and sustainable growth models to reduce plastic waste pollution in the context of the European Union.
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