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The Plastic Recycling Industry and its Relationship to Oil Price

by Boyle, Brooke

Abstract

Plastic manufacturers have a choice of purchasing virgin or secondary material for production. Virgin material in plastics production is oil, and secondary material is recycled plastic. Both can be used to make resin used in plastic production. This substitute relationship means that the material plastic recycling industry is likely to be impacted by changes to oil prices. If plastic recycling limits the negative externalities caused by virgin resource consumption and provides a viable substitute in the form of secondary material, then understanding the relationship between the two could be key to increasing the recycling rate and usage of secondary material in the future. A finite distributed and autoregressive distributed lag model are used to analyze the constant elasticity relationship between the price of oil and the producer price index of material plastic recyclers, using data from 1996-2016. It is expected that a positive impact between oil price in a previous period and the PPI of material plastic recyclers in the current period will be found.

Note

The author has given permission for this work to be deposited in the Digital Archive of Colorado College.

Colorado College Honor Code upheld.

Includes bibliographical references.

Administrative Notes

The author has given permission for this work to be deposited in the Digital Archive of Colorado College.

Colorado College Honor Code upheld.

Copyright
Copyright restrictions apply.
Publisher
Colorado College Tutt Library
PID
coccc:27429
Digital Origin
born digital
Extent
55 pages : illustrations
Thesis
Senior Thesis -- Colorado College
Thesis Advisor
Rader, Christina
Department/Program
Economics and Business
Degree Name
Bachelor of Arts
Degree Type
bachelor
Degree Grantor
Colorado College Tutt Library
Date Issued
2017-05