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Does International Harmonization of Environmental Policy Instruments Make Economic Sense?

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  • Anni Huhtala
  • Eva Samakovlis

Abstract

Harmonization of the instruments used in environmental policy has beenconsidered necessary to guarantee “fair” competition in internationalmarkets. We examine the economic costs of harmonizing paper recyclingstandards in countries where the urgency of the waste disposal problemsdiffer. Using data of seven European countries we estimate thetechnologically feasible input combinations of pulp and waste paper forpaper production. Short-term effects of two environmental policy measures,minimum content requirement and utilization rate target, are analyzed. Bytranslating the two administrative instruments into taxes and subsidies, weshow that the shadow costs of the harmonization vary considerably betweencountries. The difference in the domestic availability of waste may explainthe variation, and a modification of the policy measures to incorporate thisaspect is suggested. Copyright Kluwer Academic Publishers 2002

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  • Anni Huhtala & Eva Samakovlis, 2002. "Does International Harmonization of Environmental Policy Instruments Make Economic Sense?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 21(3), pages 259-284, March.
    • Handle: RePEc:kap:enreec:v:21:y:2002:i:3:p:259-284
    DOI: 10.1023/A:1014585213584
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    Cited by:

    1. Zylicz, Tomasz, 2010. "Goals and Principles of Environmental Policy," International Review of Environmental and Resource Economics, now publishers, vol. 3(4), pages 299-334, May.
    2. Arminen, Heli & Hujala, Maija & Puumalainen, Kaisu & Tuppura, Anni & Toppinen, Anne, 2013. "An update on inter-country differences in recovery and utilization of recycled paper," Resources, Conservation & Recycling, Elsevier, vol. 78(C), pages 124-135.
    3. Berglund, Christer & Soderholm, Patrik, 2003. "Complementing Empirical Evidence on Global Recycling and Trade of Waste Paper," World Development, Elsevier, vol. 31(4), pages 743-754, April.
    4. Higashida, Keisaku & Jinji, Naoto, 2006. "Strategic use of recycled content standards under international duopoly," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 242-257, March.
    5. Eva Samakovlis, 2003. "The Relationship between Waste Paper and Other Inputs in the Swedish Paper Industry," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(2), pages 191-212, June.
    6. Christer Berglund & Patrik Söderholm, 2003. "An Econometric Analysis of Global Waste Paper Recovery and Utilization," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(3), pages 429-456, November.

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