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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

    as
    1. 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.
    2. 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.
    3. Derek Kellenberg, 2010. "Consumer waste, backhauling, and pollution havens," Journal of Applied Economics, Universidad del CEMA, vol. 13, pages 283-304, November.
    4. 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.
    5. 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.
    6. 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.
    7. Clerides, Sofronis, 2008. "Gains from trade in used goods: Evidence from automobiles," Journal of International Economics, Elsevier, vol. 76(2), pages 322-336, December.
    8. 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.
    9. Jen Baggs, 2009. "International Trade in Hazardous Waste," Review of International Economics, Wiley Blackwell, vol. 17(1), pages 1-16, February.
    10. 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.
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    Cited by:

    1. Gulzhazira Ilyassova & Aigul Nukusheva & Leila Arenova & Guldana Karzhassova & Marzhangul Akimzhanova, 2021. "RETRACTED ARTICLE: Prospects of legal regulation in the field of electronic waste management in the context of a circular economy," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 21(3), pages 367-388, September.
    2. 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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