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International Trade in Hazardous Waste
Authors:Jen Baggs
Institution:Baggs: University of Victoria, PO Box 1700 STN CSC, Victoria, BC, V8W 2Y2, Canada. E‐mail: . The author is very grateful for the helpful comments of an anonymous referee, Werner Antweiler, James Brander, Sandra Chamberlain, Brian Copeland, Keith Head, John Ries, Marc Siscart, and seminar participants at the University of British Columbia. This research was partially funded by SSHRC grant no. 752‐2000‐2117.
Abstract:This paper combines a gravity model with country characteristics to examine trade in hazardous waste. A significant pollution haven effect is observed as rising per capita income reduces the amount of hazardous waste countries' import. However, this effect is outweighed by high-income countries' relative capital abundance, and by rising GDP creating larger increases in disposal capacity than waste production. Simulating the volume and direction of hazardous waste trade in the absence of distance costs, leads to a 153% increase in waste traded, and a larger increase in shipments from non-OECD countries to OECD members than from the OECD to nonmembers.
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