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Does International Harmonization of Environmental Policy Instruments Make Economic Sense?

  • Anni Huhtala

    ()

  • Eva Samakovlis

Harmonization of the instruments used in environmental policy has beenconsidered necessary to guarantee “fair” competition in internationalmarkets. We examine the economic costs of harmonizing paper recyclingstandards in countries where the urgency of the waste disposal problemsdiffer. Using data of seven European countries we estimate thetechnologically feasible input combinations of pulp and waste paper forpaper production. Short-term effects of two environmental policy measures,minimum content requirement and utilization rate target, are analyzed. Bytranslating the two administrative instruments into taxes and subsidies, weshow that the shadow costs of the harmonization vary considerably betweencountries. The difference in the domestic availability of waste may explainthe variation, and a modification of the policy measures to incorporate thisaspect is suggested. Copyright Kluwer Academic Publishers 2002

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File URL: http://hdl.handle.net/10.1023/A:1014585213584
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Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 21 (2002)
Issue (Month): 3 (March)
Pages: 259-284

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Handle: RePEc:kap:enreec:v:21:y:2002:i:3:p:259-284
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  1. Grace, Richard & Turner, R. Kerry & Walter, Ingo, 1978. "Secondary materials and international trade," Journal of Environmental Economics and Management, Elsevier, vol. 5(2), pages 172-186, June.
  2. Klaus Conrad, 1999. "Resource and Waste Taxation in the Theory of the Firm with Recycling Activities," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 14(2), pages 217-242, September.
  3. Choe, Chongwoo & Fraser, Iain, 1999. "An Economic Analysis of Household Waste Management," Journal of Environmental Economics and Management, Elsevier, vol. 38(2), pages 234-246, September.
  4. Paul Weaver & H. Gabel & Jacqueline Bloemhof-Ruwaard & Luk Wassenhove, 1997. "Optimizing environmental product life cycles," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(2), pages 199-224, March.
  5. Don Fullerton & Wenbo Wu, 1996. "Policies for Green Design," NBER Working Papers 5594, National Bureau of Economic Research, Inc.
  6. Anni Huhtala, 1997. "A Post-Consumer Waste Management Model for Determining Optimal Levels of Recycling and Landfilling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 10(3), pages 301-314, October.
  7. Palmer, Karen & Walls, Margaret, 1997. "Optimal policies for solid waste disposal Taxes, subsidies, and standards," Journal of Public Economics, Elsevier, vol. 65(2), pages 193-205, August.
  8. Beghin, John C. & Sumner, D., 1992. "Domestic Content Requirements with Bilateral Monopoly," Staff General Research Papers 1571, Iowa State University, Department of Economics.
  9. 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.
  10. Margaret Walls & Paul Calcott, 2000. "Can Downstream Waste Disposal Policies Encourage Upstream "Design for Environment"?," American Economic Review, American Economic Association, vol. 90(2), pages 233-237, May.
  11. 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.
  12. Grossman, Gene M, 1981. "The Theory of Domestic Content Protection and Content Preference," The Quarterly Journal of Economics, MIT Press, vol. 96(4), pages 583-603, November.
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