North–south trade in reusable goods: Green design meets illegal shipments of waste
In a stylized model of international trade, firms in the North indirectly export second-hand products to a representative firm in the South to be reused as intermediate goods, with potential trade gains. The level of reusability of waste products – or green design – is a crucial choice variable in the North. This is because, in the presence of imperfect international monitoring, non-reusable waste can be illegally mixed with reusable waste. I explore the driving forces for illegal waste movement, with a particular focus on local waste regulations such as the EU׳s Directive on Waste Electrical and Electronic Equipment. Under mild conditions, it is shown that increasingly stringent regulations in the North can induce Northern firms to reduce product reusability. Consequently, the flow of non-reusable waste to the South increases, magnifying the pollution haven effect.
Volume (Year): 69 (2015)
Issue (Month): C ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/inca/622870|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- van Beukering, Pieter J. H. & Bouman, Mathijs N., 2001. "Empirical Evidence on Recycling and Trade of Paper and Lead in Developed and Developing Countries," World Development, Elsevier, vol. 29(10), pages 1717-1737, October.
- Fullerton, Don & Wu, Wenbo, 1998.
"Policies for Green Design,"
Journal of Environmental Economics and Management,
Elsevier, vol. 36(2), pages 131-148, September.
- Don Fullerton & Wenbo Wu, 1996. "Policies for Green Design," NBER Working Papers 5594, National Bureau of Economic Research, Inc.
- Walls, Margaret, 2006. "Extended Producer Responsibility and Product Design: Economic Theory and Selected Case Studies," Discussion Papers dp-06-08, Resources For the Future.
- Fleckinger, Pierre & Glachant, Matthieu, 2010. "The organization of extended producer responsibility in waste policy with product differentiation," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 57-66, January.
- Pierre Fleckinger & Matthieu Glachant, 2010. "The organization of extended producer responsibility in waste policy with product differentiation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00446819, HAL.
- Hiroaki Ino, 2007. "Extended producer responsibility in oligopoly," Economics Bulletin, AccessEcon, vol. 17(6), pages 1-9.
- Bond, Eric W, 1983. "Trade in Used Equipment with Heterogeneous Firms," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 688-705, August.
- 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.
- Marco Runkel, 2003. "Product Durability and Extended Producer Responsibility in Solid Waste Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(2), pages 161-182, February.
- Eichner, Thomas & Pethig, Rudiger, 2001. "Product Design and Efficient Management of Recycling and Waste Treatment," Journal of Environmental Economics and Management, Elsevier, vol. 41(1), pages 109-134, January.
- Thomas Eichner & Rüdiger Pethig, 1999. "Product Design and efficient Management of Recycling and Waste Treatment," Volkswirtschaftliche Diskussionsbeiträge 76-99, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
- Clerides, Sofronis, 2008. "Gains from trade in used goods: Evidence from automobiles," Journal of International Economics, Elsevier, vol. 76(2), pages 322-336, December.
- Thomas Eichner & Marco Runkel, 2005. "Efficient Policies for Green Design in a Vintage Durable Good Model," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(3), pages 259-278, March.
- 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.
- Kellenberg, Derek, 2012. "Trading wastes," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 68-87.
- Jen Baggs, 2009. "International Trade in Hazardous Waste," Review of International Economics, Wiley Blackwell, vol. 17(1), pages 1-16, February.
- repec:hal:cesptp:hal-00641867 is not listed on IDEAS
- repec:hal:journl:hal-00446819 is not listed on IDEAS
- Garth Frazer, 2008. "Used-Clothing Donations and Apparel Production in Africa," Economic Journal, Royal Economic Society, vol. 118(532), pages 1764-1784, October. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:jeeman:v:69:y:2015:i:c:p:22-35. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.