Effects of Transboundary Pollution on the Mode of International Trade of a Polluting Good*

By analyzing a strategic interaction between environmentally‐concerned governments, we examine how the competition mode of international polluting oligopoly is determined. We show that a resulting form of competition depends on the magnitudes of marginal damage costs and cross‐border spillover as well as on the degrees of similarities in these environment‐related parameters.     

The curse of low-valued recycling

Journal of Regulatory Economics - This paper discusses how to deal with low-valued recyclable wastes whose reprocessing itself does not pay financially. While such a recycling activity can...     

An economic analysis of the Packaging waste Recovery Note System in the UK

In order to cope with the increasing scarcity of final dump sites for household wastes, the UK recently introduced an environmental policy targeted at the firms that produce and sell products that generate packaging wastes. This policy requires such businesses to hold predetermined numbers of tradable credits called “Packaging waste Recovery Notes” (PRNs). This article provides insights into the economic implications of such a policy through a simple analytical model of a recyclable product and the PRN markets. Our analysis yields two particularly interesting results. First, an increase in the required recycling rate dampens the output and landfill waste levels, while the effect on the level of recycling activities is ambiguous. Second, an increase in the landfill tax always leads to an increase in the landfill waste. We also discuss how the socially optimal landfill tax in the presence of the PRN market should be chosen.