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Optimal policies for international recycling between developed and developing countries

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  • Satoshi Honma

    (Tokai University)

Abstract

In this paper, we model international recycling in a two-country model, where firms in a Northern, developed country produce goods (such as electronic equipment) and recycle them, compared to firms in a Southern, developing country, which recycle “post-consumer” products (e-waste) imported from the Northern country. We investigate optimal tax-subsidy scenarios for the following three cases: (1) an on-site disposal economy where international recycling is freely implemented, (2) a return economy where Southern firms’ waste is recycled and returned to the North, and (3) an inactive Southern economy where no policy instruments takes place because of administrative shortages. For each of the above three cases, alternative tax-subsidy systems can maximize the social welfare of both countries, which is called a deposit-refund system.

Suggested Citation

  • Satoshi Honma, 2019. "Optimal policies for international recycling between developed and developing countries," Letters in Spatial and Resource Sciences, Springer, vol. 12(2), pages 143-153, August.
    • Handle: RePEc:spr:lsprsc:v:12:y:2019:i:2:d:10.1007_s12076-019-00233-1
    DOI: 10.1007/s12076-019-00233-1
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    Cited by:

    1. Sun, Meng, 2019. "The effect of border controls on waste imports: Evidence from China's Green Fence campaign," China Economic Review, Elsevier, vol. 54(C), pages 457-472.

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    More about this item

    Keywords

    Recycling; E-waste; International trade; Environmental tax; Subsidy; North–South trade model;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade

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