The effect of recycling over a mining oligopoly

Sylvain Sourisseau (), Jean De Beir () and Thai Ha Huy ()
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Sylvain Sourisseau: ADEME - French Agency of Environment and Energy Management, University of Paris Saclay - Evry Val d’Essonne, TEPP-CNRS, Department of Economics
Jean De Beir: University of Paris Saclay - Evry Val d’Essonne, TEPP-CNRS, Department of Economics
Thai Ha Huy: University of Paris Saclay - Evry Val d’Essonne, TEPP-CNRS, Department of Economics
Authors registered in the RePEc Author Service: Thai Ha-Huy

No 17-05, Documents de recherche from Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne

Abstract: In a view of switching from a linear to a circular economy, recycling plays a fundamental role. While the literature on the effect of recycling over the mining activity is focused on a monopoly, here we only deal with a mining oligopoly, which better reflects realistic market conditions. Our results show a decreasing mining output with the presence of recycling and unexpectidly a greater market power. Nevertheless, we point out the need for recylers to benefit from a minimum recycling efficiency technology to enter the market. A second technologic threshold also allows the recyclers to lower the oligopolistic market power. In this case of extreme foreclosure, since the mining output rises with the number of firms, a cooperation is necessary to prevent the entry of recycling. In terms of strategy, an horizontal integration could strengthen their position in the upstream industrial process and would also represent a good way to step forward to the so-called circular economy.

Keywords: oligopoly; market power; recycling; Alcoa case; iron and steel industry (search for similar items in EconPapers)
JEL-codes: D43 L13 L72 Q40 Q53 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2017
New Economics Papers: this item is included in nep-com and nep-dcm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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