Resource Dependence, Recycling, and Trade

Peter Egger and Christian Keuschnigg

No 18486, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Recycling waste from used goods can substitute for scarce raw materials and reduce resource dependence. We present a model of waste collection, recycling and final goods production using raw and recycled materials. Avoiding environmental damage from non-recycled waste causes costly landfill and creates externalities. An optimal allocation requires a trash tax on producers to pay for costly waste disposal, and an input subsidy to recycling firms to compensate for disposal cost avoidance. Trade between resource poor and resource rich countries involves non-trivial interactions between terms of trade effects and distortions in recycling and resource extraction.

JEL-codes: D62 F18 Q32 Q53 (search for similar items in EconPapers)
Date: 2023-09
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Related works:
Journal Article: Resource dependence, recycling, and trade (2024)
Working Paper: Resource Dependence, Recycling, and Trade (2023)
Working Paper: Resource Dependence, Recycling, and Trade (2023)
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