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The Economics of Recycling Rate: new insights from a Waste Electrical and Electronic Equipment

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  • Florian Fizaine

    (Université de Savoie Mont Blanc, IREGE)

Abstract

In this paper, we address the issue relative to the determinants of metal recycling rate. The literature on recycling flows is scarce and does not directly address the issue of achieving high recycling rate. In addition, the existing literature has not quantified the recycling rate response to metal price. This is why we explore factors of the recycling rate of different metals embodied in computer. We examine the effect of metal price, metal concentration in product, and relative concentration ratio (competition between primary and secondary supply) on recycling rate. Although we find a significant effect of metal price on recycling rate, the marginal response is very low across different type of models (OLS, GLM, FRMER, left censored Tobit). This effect is not surprising and in line with the existing literature relative to recycling flows. Conversely, it seems that recycling rate is more elastic to other technical factors like the metal concentration in products or the relative concentration ratio. We discuss public policies deriving from our results. We need more data and interdisciplinary studies to support these preliminary results.

Suggested Citation

  • Florian Fizaine, 2019. "The Economics of Recycling Rate: new insights from a Waste Electrical and Electronic Equipment," Policy Papers 2019.01, FAERE - French Association of Environmental and Resource Economists.
    • Handle: RePEc:fae:ppaper:2019.01
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    1. Pommeret, Aude & Ricci, Francesco & Schubert, Katheline, 2022. "Critical raw materials for the energy transition," European Economic Review, Elsevier, vol. 141(C).

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    More about this item

    Keywords

    Recycling rate; Metal; Price; Circular economy;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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