Optimal policies for international recycling between developed and developing countries

Satoshi Honma

Letters in Spatial and Resource Sciences, 2019, vol. 12, issue 2, No 6, 143-153

Abstract: 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.

Keywords: Recycling; E-waste; International trade; Environmental tax; Subsidy; North–South trade model (search for similar items in EconPapers)
JEL-codes: Q27 Q53 Q56 (search for similar items in EconPapers)
Date: 2019
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Working Paper: Optimal policies for international recycling between developed and developing countries (2013)
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DOI: 10.1007/s12076-019-00233-1

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