Plastic pollution and economic growth: some lessons from Japan

This study examines the long-term relationship between plastic pollution and economic growth in Japan, using time series data from 1985 to 2021. This study also examines the role of institutions, especially the Japanese informal/social and cultural values, in balancing plastic pollution/waste caused by the country’s rapid economic expansion. The regression results demonstrated that an increase in plastic output/waste in the short-run is related to an increase in GDP per capita, manufacturing sector share of GDP, and population size. However, the quadratic component of lagged GDP per capita is found to be negatively correlated with increased plastic production, providing statistical support for the presence of an inverted U-shaped EKC. Though R&D spending increased plastic waste discharge in the short run, it has since reversed in the long run. Despite its high plastic production and consumption, Japan has become one of the most efficient plastic waste management nations due to its unique socio-cultural habits, which deserves to be replicated worldwide.