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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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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 21 (2002)
Issue (Month): 3 (March)
Pages: 259-284

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Handle: RePEc:kap:enreec:v:21:y:2002:i:3:p:259-284

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Web page: http://www.springerlink.com/link.asp?id=100263

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Keywords: environmental policy harmonization; recycling; standards; subsidies; taxes; waste paper;

References

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  1. Choe, Chongwoo & Fraser, Iain, 1999. "An Economic Analysis of Household Waste Management," Journal of Environmental Economics and Management, Elsevier, vol. 38(2), pages 234-246, September.
  2. Beghin, John C & Sumner, Daniel A, 1992. "Domestic Content Requirements with Bilateral Monopoly," Oxford Economic Papers, Oxford University Press, vol. 44(2), pages 306-16, April.
  3. Fullerton, Don & Wu, Wenbo, 1998. "Policies for Green Design," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 131-148, September.
  4. Margaret Walls & Paul Calcott, 2000. "Can Downstream Waste Disposal Policies Encourage Upstream "Design for Environment"?," American Economic Review, American Economic Association, vol. 90(2), pages 233-237, May.
  5. Palmer, Karen & Walls, Margaret, 1997. "Optimal policies for solid waste disposal Taxes, subsidies, and standards," Journal of Public Economics, Elsevier, vol. 65(2), pages 193-205, August.
  6. Thomas Eichner & Rüdiger Pethig, 1999. "Product Design and efficient Management of Recycling and Waste Treatment," Volkswirtschaftliche Diskussionsbeiträge 76-99, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
  7. Klaus Conrad, 1999. "Resource and Waste Taxation in the Theory of the Firm with Recycling Activities," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 14(2), pages 217-242, September.
  8. Paul Weaver & H. Gabel & Jacqueline Bloemhof-Ruwaard & Luk Wassenhove, 1997. "Optimizing environmental product life cycles," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 9(2), pages 199-224, March.
  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. Copeland, Brian R., 1991. "International trade in waste products in the presence of illegal disposal," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 143-162, March.
  11. Grace, Richard & Turner, R. Kerry & Walter, Ingo, 1978. "Secondary materials and international trade," Journal of Environmental Economics and Management, Elsevier, vol. 5(2), pages 172-186, June.
  12. Anni Huhtala, 1997. "A Post-Consumer Waste Management Model for Determining Optimal Levels of Recycling and Landfilling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 10(3), pages 301-314, October.
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Citations

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Cited by:
  1. 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.
  2. 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.
  3. Eva Samakovlis, 2003. "The Relationship between Waste Paper and Other Inputs in the Swedish Paper Industry," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 25(2), pages 191-212, June.
  4. Christer Berglund & Patrik Söderholm, 2003. "An Econometric Analysis of Global Waste Paper Recovery and Utilization," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 26(3), pages 429-456, November.
  5. 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.

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