Hypothesis test of the environmental Kuznets curve for urban solid waste in municipalities of the State of Mexico and Hidalgo 2010-2018

Abstract

A test of the Kuznets curve hypothesis for urban solid waste per capita was carried out in 208 municipalities of Estado de Mexico and Hidalgo, Mexico, in five time periods (2010-2018). Municipal gross domestic product (GDP) and population density were used as independent variables. Data were transformed with natural logarithms. Fixed effect estimates were made. However, due to autocorrelation and heteroscedasticity, the Prais-Winsten and feasible generalized least squares methods were used. Although the literature recommends Prais-Winsten for short periods, there is no consensus in favor of any method. Prais-Winsten did not show a significant relationship between residuals and GDP. In comparison, the generalized method revealed a positive linear relationship between both variables. In both methods the density is positively significant. It is concluded that there is no evidence of a Kuznets curve in the data studied; however, future research should study the Kuznets curve in more Mexican municipalities.