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Strategic use of recycled content standards under international duopoly

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  • Higashida, Keisaku
  • Jinji, Naoto

Abstract

We examine the strategic use of recycled content standards (RCSs) under international duopoly. RCSs require firms supplying the domestic market to use a certain proportion of recycled materials as inputs. We demonstrate that, when there is no trade in recycled materials, two identical countries both set strategically stricter or more lax RCSs. However, when there is trade in recycled materials, it may be the case that one country sets a stricter RCS while the other sets a more lax RCS. When a world supply constraint on recycled materials is not binding, the main source of the asymmetric distortion in RCSs is a demand effect for recycled materials.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 51 (2006)
Issue (Month): 2 (March)
Pages: 242-257

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Handle: RePEc:eee:jeeman:v:51:y:2006:i:2:p:242-257

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Web page: http://www.elsevier.com/locate/inca/622870

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  1. Di Vita, Giuseppe, 1997. "Macroeconomic effects of the recycling of waste derived from imported non-renewable raw materials," Resources Policy, Elsevier, Elsevier, vol. 23(4), pages 179-186, December.
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  3. Thomas Eichner & Rüdiger Pethig, 2003. "Corrective Taxation for Curbing Pollution and Promoting Green Product Design and Recycling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 25(4), pages 477-500, August.
  4. Kala Krishna & Motoshige Itoh, 1986. "Content Protection and Oligopolistic Interactions," NBER Working Papers 1843, National Bureau of Economic Research, Inc.
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  7. Benoît Laplante & Martin K. Luckert, 1994. "Impact of Newsprint Recycling Policies on Canadian Waste Production and Forests," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 20(4), pages 400-414, December.
  8. Richardson, Martin, 1993. "Content Protection with Foreign Capital," Oxford Economic Papers, Oxford University Press, Oxford University Press, vol. 45(1), pages 103-17, January.
  9. Grossman, Gene M, 1981. "The Theory of Domestic Content Protection and Content Preference," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 96(4), pages 583-603, November.
  10. Anni Huhtala & Eva Samakovlis, 2002. "Does International Harmonization of Environmental Policy Instruments Make Economic Sense?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 21(3), pages 259-284, March.
  11. Gérard Gaudet & Ngo Van Long, 2003. "Recycling Redux: A Nash-Cournot Approach," The Japanese Economic Review, Japanese Economic Association, Japanese Economic Association, vol. 54(4), pages 409-419.
  12. Kennedy Peter W., 1994. "Equilibrium Pollution Taxes in Open Economies with Imperfect Competition," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 27(1), pages 49-63, July.
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  14. Yann Duval & Stephen Hamilton, 2002. "Strategic Environmental Policy and International Trade in Asymmetric Oligopoly Markets," International Tax and Public Finance, Springer, Springer, vol. 9(3), pages 259-271, May.
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Cited by:
  1. Mizuno, Tomomichi & Takauchi, Kazuhiro, 2013. "Rules of origin and uncertain cost of compliance," MPRA Paper 44431, University Library of Munich, Germany.
  2. Mariko Onoda, 2010. "On Second-best Policing Effort against the Illegal Disposal of Recyclable Waste," Discussion Paper Series, School of Economics, Kwansei Gakuin University 56, School of Economics, Kwansei Gakuin University, revised May 2010.
  3. Honma, Satoshi, 2013. "Optimal policies for international recycling between developed and developing countries," MPRA Paper 43703, University Library of Munich, Germany.
  4. Hajime Sugeta & Takayoshi Shinkuma, 2012. "International trade in recycled materials in vertically related markets," Environmental Economics and Policy Studies, Society for Environmental Economics and Policy Studies - SEEPS, Society for Environmental Economics and Policy Studies - SEEPS, vol. 14(4), pages 357-382, October.

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