Transboundary Movement of Waste: Second-Hand Markets and Illegal Shipments
29 Pages Posted: 5 Feb 2012
Date Written: December 3, 2011
In a stylized model of international trade, firms in the North indirectly export second-hand products to a representative firm in the South to be reused as intermediate goods, with potential trade gains. The level of reusability of waste products is a crucial choice variable in the North. This is because, in the presence of imperfect international monitoring, non-reusable waste can be illegally mixed with reusable waste. I explore the driving forces for illegal waste movement, with a particular focus on local waste regulations such as the EU’s Directive on Waste Electrical and Electronic Equipment.
JEL Classification: F18, L10, O13, Q53, Q56
Suggested Citation: Suggested Citation