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Is India becoming a waste haven of metal scrap?

Author

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  • Sawhney, Aparna
  • Majumder, Piyali

Abstract

India is one of the largest importers of waste in the world with metallic scrap constituting the bulk of the waste imports. While relatively weak environmental standards in developing countries is often seen to be a key factor in the emergence of waste havens in cross-country studies, little attention has been given to examine the pattern of waste trade in a developing country over time. This paper analyzes factors determining metallic waste import in India from different source countries during 1996 through 2012. We empirically test the presence of waste haven effect in metallic scrap import by India after controlling for technology and home market demand. We find that the escalating domestic demand for metal and use of relatively labor-intensive technology are significant factors behind India’s import of metallic wastes from different source countries. We find no empirical evidence of waste haven effect.

Suggested Citation

  • Sawhney, Aparna & Majumder, Piyali, 2015. "Is India becoming a waste haven of metal scrap?," MPRA Paper 67186, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:67186
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    File URL: https://mpra.ub.uni-muenchen.de/67186/1/MPRA_paper_67186.pdf
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    References listed on IDEAS

    as
    1. Jean-Marie Grether & Jaime de Melo, 2003. "Globalization and Dirty Industries: Do Pollution Havens Matter?," NBER Working Papers 9776, National Bureau of Economic Research, Inc.
    2. James Cassing & Thomas Kuhn, 2003. "Strategic Environmental Policies when Waste Products are Tradable," Review of International Economics, Wiley Blackwell, vol. 11(3), pages 495-511, August.
    3. Higashida, Keisaku & Managi, Shunsuke, 2014. "Determinants of trade in recyclable wastes: evidence from commodity-based trade of waste and scrap," Environment and Development Economics, Cambridge University Press, vol. 19(02), pages 250-270, April.
    4. Cole, Matthew A. & Elliott, Robert J. R., 2003. "Determining the trade-environment composition effect: the role of capital, labor and environmental regulations," Journal of Environmental Economics and Management, Elsevier, vol. 46(3), pages 363-383, November.
    5. 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.
    6. Kellenberg, Derek, 2012. "Trading wastes," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 68-87.
    7. Jen Baggs, 2009. "International Trade in Hazardous Waste," Review of International Economics, Wiley Blackwell, vol. 17(1), pages 1-16, February.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    waste-haven effect; recyclable metallic wastes and scrap; factor-intensity; home- market effect.;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • 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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