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Economic analysis of e-waste market

Author

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  • Prudence Dato

    (Savoie Mont Blanc University)

Abstract

Despite international regulations that prohibit the trans-boundary movement of electronic and electric waste (e-waste), non-reusable e-waste is often illegally mixed with reusable e-waste and results in being sent to developing countries. As developing countries are not well prepared to properly manage e-waste, this illegal trade has important negative externalities and creates ‘environmental injustice’. The two main information problems on the e-waste market are imperfect monitoring and imperfect information on the so-called ‘degree of purity’ of the e-waste. In this paper, we use a simple bilateral North–South trade model and show that there exists an alternative e-waste market that is better than the standard e-waste market for developing countries. This alternative e-waste market is a joint trade in reusable and non-reusable e-waste. In both cases, we consider demand and supply sides, plus the equilibrium of the e-waste market to show that the alternative market that we propose is better for developing countries.

Suggested Citation

  • Prudence Dato, 2017. "Economic analysis of e-waste market," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 17(6), pages 815-837, December.
    • Handle: RePEc:spr:ieaple:v:17:y:2017:i:6:d:10.1007_s10784-017-9350-4
    DOI: 10.1007/s10784-017-9350-4
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    References listed on IDEAS

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    1. Bernard, Sophie, 2015. "North–south trade in reusable goods: Green design meets illegal shipments of waste," Journal of Environmental Economics and Management, Elsevier, vol. 69(C), pages 22-35.
    2. 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.
    3. 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.
    4. Keisaku Higashida, 2012. "Trade in Secondhand Goods, Monitoring of Illegal Trade, and Import Quotas on Legal Trade," Discussion Paper Series 90, School of Economics, Kwansei Gakuin University, revised Jun 2012.
    5. Prudence Dato, 2014. "Inducing Sorting Investment and Implementation of an Alternative e-Waste Market under Imperfect Information," Working Papers 2014.13, FAERE - French Association of Environmental and Resource Economists.
    6. Derek Kellenberg, 2010. "Consumer waste, backhauling, and pollution havens," Journal of Applied Economics, Universidad del CEMA, vol. 13, pages 283-304, November.
    7. Marinella Favot, 2014. "Extended producer responsibility and e-waste management: do institutions matter ?," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2014(1), pages 123-144.
    8. Clerides, Sofronis, 2008. "Gains from trade in used goods: Evidence from automobiles," Journal of International Economics, Elsevier, vol. 76(2), pages 322-336, December.
    9. 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.
    10. Jen Baggs, 2009. "International Trade in Hazardous Waste," Review of International Economics, Wiley Blackwell, vol. 17(1), pages 1-16, February.
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    Cited by:

    1. Prudence Dato, 2018. "Inducing e-waste sorting investment under imperfect information," Economics Bulletin, AccessEcon, vol. 38(1), pages 629-637.
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    More about this item

    Keywords

    E-waste; Market; Imperfect information; International trade;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • F18 - International Economics - - Trade - - - Trade and Environment

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