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The Environmental Consequences of Global Reuse


  • Thomas Kinnaman
  • Hide-Fumi Yokoo


This paper summarizes a two-country model that solves for optimal tax rates to achieve efficiency in an economy with international trade in used consumer electronics. If only the developed nation can tax the disposal of e-waste, then the global Pareto Optimum can be obtained by either imposing an import tariff on used consumer electronics or subsidizing the return of e-waste for disposal in the developed country. The global Pareto Optimum can also be obtained by reducing the disposal tax in the developed country to a level below the external marginal cost of disposal should no other policy option be available.

Suggested Citation

  • Thomas Kinnaman & Hide-Fumi Yokoo, 2011. "The Environmental Consequences of Global Reuse," American Economic Review, American Economic Association, vol. 101(3), pages 71-76, May.
  • Handle: RePEc:aea:aecrev:v:101:y:2011:i:3:p:71-76

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    References listed on IDEAS

    1. Yokoo, Hide-Fumi & Kinnaman, Thomas C., 2013. "Global Reuse and optimal waste policy," Environment and Development Economics, Cambridge University Press, vol. 18(05), pages 595-614, October.
    2. 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.
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    Cited by:

    1. Bernard, Sophie, 2015. "North–south trade in reusable goods: Green design meets illegal shipments of waste," Journal of Environmental Economics and Management, Elsevier, vol. 69(C), pages 22-35.
    2. Prudence Dato, 2015. "Economic analysis of e-waste market under imperfect information," Working Papers halshs-01172148, HAL.
    3. Honma, Satoshi, 2013. "Optimal policies for international recycling between developed and developing countries," MPRA Paper 43703, University Library of Munich, Germany.
    4. repec:spr:ieaple:v:17:y:2017:i:6:d:10.1007_s10784-017-9350-4 is not listed on IDEAS
    5. Keisaku Higashida, 2012. "Trade in Secondhand Goods, Monitoring of Illegal Trade, and Import Quotas on Legal Trade," Discussion Paper Series 90, School of Economics, Kwansei Gakuin University, revised Jun 2012.
    6. Daisuke Numata & Shunsuke Managi, 2012. "Demand for refilled reusable products," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 14(4), pages 421-436, October.

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