Recycling, International Trade, and the Distribution of Pollution: The Effect of Increased U.S. Paper Recycling on U.S. Import Demand for Canadian Paper

Posted: 31 Aug 1998

See all articles by Jeffrey A. Michael

Jeffrey A. Michael

Towson University - Department of Economics; North Carolina State University - College of Agriculture and Life Sciences

Abstract

The quantity of paper recycled in the U.S. has more than doubled since 1985. International trade theory predicts that this will lead to reduced imports of paper, and a shift in domestic production toward waste paper intensive outputs (e.g., newsprint) and away from higher grade products such as printing/writing paper. Import demand elasticities with respect to input prices were estimated for newsprint, printing/writing, and all paper utilizing 20 years of monthly data. The empirical results confirm the predictions of theory, and illustrate a channel through which recycling may be more beneficial for U.S. industry than the domestic environment.

JEL Classification: Q21

Suggested Citation

Michael, Jeffrey A., Recycling, International Trade, and the Distribution of Pollution: The Effect of Increased U.S. Paper Recycling on U.S. Import Demand for Canadian Paper. Journal of Agricultural and Applied Economics, Vol. 30, No. 1, July 1998. Available at SSRN: https://ssrn.com/abstract=95431

Jeffrey A. Michael (Contact Author)

Towson University - Department of Economics ( email )

Towson, MD 21204
United States

North Carolina State University - College of Agriculture and Life Sciences ( email )

Box 8109
Raleigh, NC 27695-8109
United States
919-515-3896 (Phone)
919-515-7873 (Fax)

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