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Optimal rate of paper recycling

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  • Tatoutchoup, Francis Didier

Abstract

This paper uses a dynamic land allocation model combined with the infinite rotation problem to determine theoretically, the recycling rate that maximizes the forest area and, thus, the number of trees under social management thereby integrating both positive externalities generated by the forest and social costs of not recycling. The results suggest that, when the recycling rate is low, increasing it to its optimal level will result in more land area being devoted to forestry and, thus, more trees. However, increasing it beyond its optimal level will reduce the number of trees in the long run. In addition, the recycling rate that maximizes the forest area is optimal in the sense that it also maximizes the social net benefit. An application shows that increasing the recycling rate up to its optimal level considerably increases the forest area. The increase in the social net benefit is very small.

Suggested Citation

  • Tatoutchoup, Francis Didier, 2016. "Optimal rate of paper recycling," Forest Policy and Economics, Elsevier, vol. 73(C), pages 264-269.
  • Handle: RePEc:eee:forpol:v:73:y:2016:i:c:p:264-269
    DOI: 10.1016/j.forpol.2016.09.022
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    References listed on IDEAS

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    1. Darby, Michael R, 1973. "Paper Recycling and the Stock of Trees," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1253-1255, Sept.-Oct.
    2. Rigoberto A. Lopez & Farhed A. Shah & Marilyn A. Altobello, 1994. "Amenity Benefits and the Optimal Allocation of Land," Land Economics, University of Wisconsin Press, vol. 70(1), pages 53-62.
    3. Edward B. Barbier & Joanne C. Burgess, 1997. "The Economics of Tropical Forest Land Use Options," Land Economics, University of Wisconsin Press, vol. 73(2), pages 174-195.
    4. Koskela, Erkki & Ollikainen, Markku, 2001. "Forest Taxation and Rotation Age under Private Amenity Valuation: New Results," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 374-384, November.
    5. Hartman, Richard, 1976. "The Harvesting Decision When a Standing Forest Has Value," Economic Inquiry, Western Economic Association International, vol. 14(1), pages 52-58, March.
    6. Simeon K. Ehui & Thomas W. Hertel, 1989. "Deforestation and Agricultural Productivity in the Côte d'Ivoire," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 703-711.
    7. Dijkgraaf, Elbert & Vollebergh, Herman R.J., 2004. "Burn or bury? A social cost comparison of final waste disposal methods," Ecological Economics, Elsevier, vol. 50(3-4), pages 233-247, October.
    8. G. Cornelis van Kooten & Clark S. Binkley & Gregg Delcourt, 1995. "Effect of Carbon Taxes and Subsidies on Optimal Forest Rotation Age and Supply of Carbon Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 365-374.
    9. Kinnaman, Thomas C. & Shinkuma, Takayoshi & Yamamoto, Masashi, 2014. "The socially optimal recycling rate: Evidence from Japan," Journal of Environmental Economics and Management, Elsevier, vol. 68(1), pages 54-70.
    10. Miranda, Marie Lynn & Hale, Brack, 1997. "Waste not, want not: the private and social costs of waste-to-energy production," Energy Policy, Elsevier, vol. 25(6), pages 587-600, May.
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    More about this item

    Keywords

    Recycling rate; Optimal rotation; Forestry; Land allocation;

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General

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