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Resource dependence, recycling, and trade

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  • Egger, Peter H.
  • Keuschnigg, Christian

Abstract

Recycling waste from used goods can substitute for scarce virgin materials and reduce resource dependence. We present a model of waste collection, recycling, and final goods production using virgin and recycled materials. Environmentally safe disposal of trash (non-recycled waste) requires costly processing by landfill and burning which creates externalities. Trade between resource poor and resource rich countries involves non-trivial interactions between terms of trade effects and distortions in recycling and resource extraction. We analyze welfare improving policy intervention with local trash disposal and with trade in trash.

Suggested Citation

  • Egger, Peter H. & Keuschnigg, Christian, 2024. "Resource dependence, recycling, and trade," Journal of Environmental Economics and Management, Elsevier, vol. 128(C).
    • Handle: RePEc:eee:jeeman:v:128:y:2024:i:c:s0095069624001384
    DOI: 10.1016/j.jeem.2024.103064
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    Cited by:

    1. Timo Kuosmanen & Xun Zhou, 2025. "Secondary materials, Pigouvian taxes, and a monopsony," Papers 2502.14636, arXiv.org.

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    More about this item

    Keywords

    Waste; Recycling; Externalities; Resource dependence; Trade;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • F18 - International Economics - - Trade - - - Trade and Environment

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