Resource Dependence, Recycling, and Trade

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 10553

Classification and Topics

• Classification: Wirtschaft ; Externalities ; Exhaustible Resources and Economic Development ; Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling ; Trade and Environment
• Subject: waste ; recycling ; externalities ; resource dependence ; trade

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Egger, Peter H. ; Keuschnigg, Christian
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/279303
• Last update: 10.03.2025, 11:44 AM CET