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Does Quality Matter in the Iron and Scrap Trade?

Author

Listed:
  • Michida, Etsuyo
  • Atici, Cemal
  • Kojima, Michikazu

Abstract

This paper sheds light on the iron and steel (IS) scrap trade to examine how economic development affects the quality demanded of recyclable resource. A simple model is presented that show a mechanism of how scrap quality impacts the direction of trade due to comparative advantage. We find that economic development in both importing and exporting countries has a positive effect on the quality of traded recyclables. Developed countries that intend to improve the domestic recovery of recyclables should raise the quality of separating recyclables while developing countries should tighten environmental regulations to help decrease the import of recyclables that cause pollution.

Suggested Citation

  • Michida, Etsuyo & Atici, Cemal & Kojima, Michikazu, 2011. "Does Quality Matter in the Iron and Scrap Trade?," IDE Discussion Papers 282, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper282
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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=37890&item_no=1&attribute_id=22&file_no=1
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    References listed on IDEAS

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    Cited by:

    1. Toshihiro Okubo & Yuta Watabe & Kaori Furuyama, 2016. "Export of Recyclable Materials: Evidence from Japan," Asian Economic Papers, MIT Press, vol. 15(1), pages 134-148, Winter/Sp.
    2. Etsuyo Michida, 2013. "International trade of recyclables and policies to support their sustainable use in Asia," Chapters,in: International Trade in Recyclable and Hazardous Waste in Asia, chapter 2, pages 14-32 Edward Elgar Publishing.

    More about this item

    Keywords

    Recycling (waste; etc.); Iron; International trade; Environmental problems; Developing countries; Developed countries; Iron and steel; Scrap; Environment; Trade;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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