The COVID-19 Pandemic and Unsustainable PPE Materials: A Correlation and Causality Analysis

Abstract

AbstractIn this paper, we investigate the economic impact of the COVID-19 pandemic on European and Chinese unsustainable and non-recyclable plastic markets, specifically those used for the production of Personal Protective Equipment (PPE). We explore exogenous economic and commodity price impacts on polypropylene, acrylonitrile and polyvinyl-chloride, via VECM and Granger causality analysis, with the results remaining robust under testing. We find that price shocks from rubber and EUROSTOXX are significantly correlated with PPE materials, to a greater extent than crude oil, unexpectedly relating price declines in PPE materials to factors beyond medical demand. This will aid a policymakers and industry understand the factors that affect the price of unsustainable and non-recyclable PPE materials, respond to the need for pandemic PPE provision and reduce the potential environmental impact of future pandemics.