Socio-economic and political factors affecting the rate of recycling in Portuguese municipalities

Abstract

Literature has mostly studied the impact of socio-economic factors on recycling, but little attention has been given to political factors as determinants of the recycling process in subnational units. This study analyses the impact of both socio-economic and political factors on the recycling process, based on a dataset of the Portuguese Municipalities in the period 2009-2017, assuming that political orientation and composition of the local government shapes also the recycling performance. By estimating a dynamic panel model, the results validate the U-shaped hypothesis between recycling and production activity, indicating that the primary sector is positively associated with recycling in contrast to other sectors, older population recycles more than young/middle age generation, and recycling increased during the fiscal consolidation period. Regarding the political variables, it is shown that political ideology of the local government (even when it is composed by independent groups of citizens) does not influence recycling significantly, contrary to expectations. Recycling declines in election years, and it is less when the executive in the Town Council and the Municipal Assembly share the same political ideology, validating the veto player theory. Evidence also suggests that the recycling behavior adjusts quickly to its desirable level reflecting a fast-learning process.