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Institutional conditions for Swedish metal production: A comparison of subsidies to metal mining and metal recycling

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  • Johansson, Nils
  • Krook, Joakim
  • Eklund, Mats

Abstract

This article examines and contrasts the level of Swedish governmental subsidies to two different ways of producing metal: the metal recycling sector and the metal mining sector. In 2010, the metal mining sector was subsidized by € 40 million and the metal recycling sector € 0.6 million. If the exemption from landfill tax is considered a subsidy, the level of subsidization to the metal mining sector changes drastically to approximately € 4000 million. Regardless of how the concept “subsidy” is defined, the metal mining sector in total and per tonne of metal produced is fundamentally more highly subsidized than the metal recycling sector. The value added per tonne of metal produced for the metal recycling sector appears to be higher than for the metal mining sector. The current dominant trend in the Swedish mineral strategy is nevertheless to increase the level of subsidization to the metal mining sector.

Suggested Citation

  • Johansson, Nils & Krook, Joakim & Eklund, Mats, 2014. "Institutional conditions for Swedish metal production: A comparison of subsidies to metal mining and metal recycling," Resources Policy, Elsevier, vol. 41(C), pages 72-82.
    • Handle: RePEc:eee:jrpoli:v:41:y:2014:i:c:p:72-82
    DOI: 10.1016/j.resourpol.2014.04.001
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    Cited by:

    1. Aid, Graham & Eklund, Mats & Anderberg, Stefan & Baas, Leenard, 2017. "Expanding roles for the Swedish waste management sector in inter-organizational resource management," Resources, Conservation & Recycling, Elsevier, vol. 124(C), pages 85-97.
    2. Gregory, Amanda J. & Atkins, Jonathan P. & Midgley, Gerald & Hodgson, Anthony M., 2020. "Stakeholder identification and engagement in problem structuring interventions," European Journal of Operational Research, Elsevier, vol. 283(1), pages 321-340.
    3. Håkan Tarras-Wahlberg, 2023. "Mining and taxation in Sweden," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(2), pages 291-299, June.
    4. Bouzon, Marina & Govindan, Kannan & Rodriguez, Carlos Manuel Taboada, 2015. "Reducing the extraction of minerals: Reverse logistics in the machinery manufacturing industry sector in Brazil using ISM approach," Resources Policy, Elsevier, vol. 46(P1), pages 27-36.
    5. Skare, Marinko & Gavurova, Beata & Kovac, Viliam, 2024. "Mitigating resource curse impact through implementing circular economy effective strategies," Resources Policy, Elsevier, vol. 92(C).
    6. Andrea Bigano & Aleksander Śniegocki & Jacopo Zotti, 2016. "Policies for a More Dematerialized EU Economy. Theoretical Underpinnings, Political Context and Expected Feasibility," Sustainability, MDPI, vol. 8(8), pages 1-22, July.
    7. Nils Johansson & Joakim Krook, 2021. "How to handle the policy conflict between resource circulation and hazardous substances in the use of waste?," Journal of Industrial Ecology, Yale University, vol. 25(4), pages 994-1008, August.
    8. Wei, Jing & Zhang, Jianjun & Wu, Xia & Song, Zeyu, 2022. "Governance in mining enterprises: An effective way to promote the intensification of resources—Taking coal resources as an example," Resources Policy, Elsevier, vol. 76(C).

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    More about this item

    Keywords

    Subsidy; Recycling; Mining; Metal; Policy;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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