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Impact of China’s National Sword Policy on the U.S. Landfill and Plastics Recycling Industry

Author

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  • Aditya Vedantam

    (School of Management, University at Buffalo, Buffalo, NY 14260, USA)

  • Nallan C. Suresh

    (School of Management, University at Buffalo, Buffalo, NY 14260, USA)

  • Khadija Ajmal

    (School of Management, University at Buffalo, Buffalo, NY 14260, USA)

  • Michael Shelly

    (Environmental/Ecological Economist, RENEW, University at Buffalo, Buffalo, NY 14260, USA)

Abstract

This paper analyzes the impacts of China’s Green Fence and National Sword Programs, under which strict contamination limits were imposed on recyclable materials, besides prohibiting imports of low quality recyclables. Specifically, this study investigates the impacts of this policy on landfills, and the risks to the U.S. plastics secondary materials market and material recovery facilities (MRFs). A hierarchical regression analysis reveals the significant impacts of China’s Green Fence and National Sword polices on the amount landfilled plastic. Controlling for oil prices, producer price index (PPI), and amount of plastic scrap exported, our findings show that the Green Fence had no statistically significant impact on the amount of plastic landfilled in the U.S. However, the quantity of plastic landfilled in the U.S. increased by 23.2% following the implementation of National Sword. Furthermore, analysis of the annual reports submitted by registered MRFs in New York (NY) state reveals that the total amount of plastic recovered by them has decreased. We suggest that demand creation and investments that improve the quality of bales are needed to help solve this economic dilemma.

Suggested Citation

  • Aditya Vedantam & Nallan C. Suresh & Khadija Ajmal & Michael Shelly, 2022. "Impact of China’s National Sword Policy on the U.S. Landfill and Plastics Recycling Industry," Sustainability, MDPI, vol. 14(4), pages 1-14, February.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:4:p:2456-:d:754530
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    References listed on IDEAS

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    1. Zongguo Wen & Yiling Xie & Muhan Chen & Christian Doh Dinga, 2021. "China’s plastic import ban increases prospects of environmental impact mitigation of plastic waste trade flow worldwide," Nature Communications, Nature, vol. 12(1), pages 1-9, December.
    2. da Cruz, Nuno F. & Ferreira, Sandra & Cabral, Marta & Simões, Pedro & Marques, Rui Cunha, 2014. "Packaging waste recycling in Europe: is the industry paying for it?," LSE Research Online Documents on Economics 59755, London School of Economics and Political Science, LSE Library.
    3. Gu, Fu & Wang, Jiqiang & Guo, Jianfeng & Fan, Ying, 2020. "Dynamic linkages between international oil price, plastic stock index and recycle plastic markets in China," International Review of Economics & Finance, Elsevier, vol. 68(C), pages 167-179.
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