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Strategic use of recycled content standards under international duopoly

  • Higashida, Keisaku
  • Jinji, Naoto

We examine the strategic use of recycled content standards (RCSs) under international duopoly. RCSs require firms supplying the domestic market to use a certain proportion of recycled materials as inputs. We demonstrate that, when there is no trade in recycled materials, two identical countries both set strategically stricter or more lax RCSs. However, when there is trade in recycled materials, it may be the case that one country sets a stricter RCS while the other sets a more lax RCS. When a world supply constraint on recycled materials is not binding, the main source of the asymmetric distortion in RCSs is a demand effect for recycled materials.

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Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 51 (2006)
Issue (Month): 2 (March)
Pages: 242-257

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Handle: RePEc:eee:jeeman:v:51:y:2006:i:2:p:242-257
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622870

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  9. Thomas Eichner & Rüdiger Pethig, 2000. "Corrective Taxation for Curbing Pollution and Promoting Green Product Design and Recycling," CESifo Working Paper Series 350, CESifo Group Munich.
  10. Di Vita, Giuseppe, 1997. "Macroeconomic effects of the recycling of waste derived from imported non-renewable raw materials," Resources Policy, Elsevier, vol. 23(4), pages 179-186, December.
  11. Furusawa, Taiji & Higashida, Keisaku & Ishikawa, Jota, 2003. "What information is needed for welfare-enhancing policies under international oligopoly?," Japan and the World Economy, Elsevier, vol. 15(1), pages 31-46, January.
  12. Benoît Laplante & Martin K. Luckert, 1994. "Impact of Newsprint Recycling Policies on Canadian Waste Production and Forests," Canadian Public Policy, University of Toronto Press, vol. 20(4), pages 400-414, December.
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