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- Title
Global Reuse and optimal waste policy.
- Authors
Yokoo, Hide-Fumi; Kinnaman, Thomas C.
- Abstract
Electronic waste generated from the consumption of durable goods in developed countries is often exported to underdeveloped countries for reuse, recycling and disposal with unfortunate environmental consequences. The lack of efficient disposal policies within developing nations coupled with global free trade agreements make it difficult for consumers to internalize these costs. This paper develops a two-country model, one economically developed and the other underdeveloped, to solve for optimal tax policies necessary to achieve the efficient allocation of economic resources in an economy with a durable good available for global reuse without policy measures in the underdeveloped country. A tax in the developed country on purchases of the new durable good combined with a waste tax set below the domestic external cost of disposal is sufficient for global efficiency. The implication of allowing free global trade in electronic waste is also examined, where optimal policy resembles a global deposit-refund system.
- Subjects
ELECTRONIC waste disposal; ENVIRONMENTAL policy; DURABLE consumer goods; RECYCLING &; the environment; FREE trade; DEPOSIT-refund systems; TAXATION of waste management; DEVELOPED countries
- Publication
Environment & Development Economics, 2013, Vol 18, Issue 5, p595
- ISSN
1355-770X
- Publication type
Article
- DOI
10.1017/S1355770X13000235