Resource Dependence, Recycling, and Trade
Journal
SSRN Electronic Journal
Series
Economics Working Paper Series; 2306
ISSN
1556-5068
Type
working paper
Date Issued
2023-06
Author(s)
Abstract
Recycling waste from used goods can substitute for scarce raw materials and reduce resource dependence. This paper presents a model of waste collection, recycling and final goods production using raw and recycled materials. Non-recycled waste must be safely stored by landfill to avoid environmental damage. The costs of waste disposal create externalities. An optimal allocation requires a trash tax to make producers pay for the costs of waste disposal, and an input subsidy to recycling firms to compensate for the savings in disposal costs. We study trade between resource poor economies exporting final goods, and resource rich countries exporting raw materials. We find rich welfare effects of trade policy with non-trivial interactions between terms of trade effects and distortions in recycling and resource extraction.
Language
English
Keywords
waste
recycling
externalities
resource dependence
trade
D62
F18
Q32
Q53
HSG Classification
contribution to scientific community
Refereed
No
Pages
34
Subject(s)
Division(s)
File(s)![Thumbnail Image]()
Name
HSG_VWA_EWP-2306.pdf
Size
610.03 KB
Format
Adobe PDF
Checksum (MD5)
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