Nonparametric Path Modeling with Double Resampling for Waste Economic Value Utilization: Simulation-Based Performance Comparison

Waste generation exceeding landfill capacity highlights the urgency of realizing its economic value. This study analyzes the effect of Quality of Facilities and Infrastructure (X1) and Use of Waste Banks (X2) on Waste Management-Based 3R (Y1) and Waste Economic Value Utilization (Y2) using a truncated spline nonparametric path model. This study evaluates the performance of a nonparametric path analysis model based on truncated spline combined with a double resampling. Data were collected using a Likert scale questionnaire on community perceptions of waste’s economic benefits in Batu City. Simulation results show that the Jackknife-Bootstrap method achieves the lowest average bias (0.058), outperforming single resampling approaches such as Single-Bootstrap (0.178) and Single-Jackknife (0.176). Empirical findings indicate that improvements in the Quality of Facilities and Infrastructure (X1) and Waste Bank Use (X2) significantly enhance Waste Management Based 3R (Y1) and Utilization of Waste Economic Value (Y2). The truncated spline model reveals a saturation effect, where the marginal benefits of X1 and X2 decrease beyond a threshold. Furthermore, Y1 positively affects Y2, emphasizing the importance of efficient waste management in enhancing economic value. The results support policies promoting balanced infrastructure development, community empowerment, and institutional innovation for sustainable circular economy implementation.