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How much does recycling reduce imports? Evidence from metallic raw materials

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  • Damien Dussaux
  • Matthieu Glachant

Abstract

In countries with limited exhaustible natural resources, reducing imports of raw materials is increasingly viewed as a significant side benefit of waste recycling. Using a panel of 21 developed and developing countries from 1994 to 2008, we seek to measure the size of this benefit by estimating the impact of metal scrap recovery on imports of metallic raw materials. We address the endogeneity of metal recovery with exogenous country characteristics including population density and the level of education. We also develop a strategy for controlling for the price volatility in raw material markets. We find that domestic metal recovery is substituted for imports of secondary raw materials while leaving imports of primary raw materials unaffected. The overall effect is a 3.3% decrease in imports of metallic raw materials when metal recovery grows by 10%. Thus, waste recycling policies may have a sizeable impact on trade balance and on security of raw material supply.

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  • Damien Dussaux & Matthieu Glachant, 2019. "How much does recycling reduce imports? Evidence from metallic raw materials," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 8(2), pages 128-146, April.
    • Handle: RePEc:taf:teepxx:v:8:y:2019:i:2:p:128-146
    DOI: 10.1080/21606544.2018.1520650
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    Cited by:

    1. M. Andriamahefazafy & P. Failler, 2022. "Towards a Circular Economy for African Islands: an Analysis of Existing Baselines and Strategies," Circular Economy and Sustainability, Springer, vol. 2(1), pages 47-69, March.
    2. Florian Flachenecker & Jun Rentschler, 2019. "From barriers to opportunities: Enabling investments in resource efficiency for sustainable development," Public Sector Economics, Institute of Public Finance, vol. 43(4), pages 345-373.
    3. Smol, Marzena & Kulczycka, Joanna, 2019. "Towards innovations development in the European raw material sector by evolution of the knowledge triangle," Resources Policy, Elsevier, vol. 62(C), pages 453-462.
    4. Jack Barrie & Patrick Schröder, 2022. "Circular Economy and International Trade: a Systematic Literature Review," Circular Economy and Sustainability, Springer, vol. 2(2), pages 447-471, June.
    5. Mulvaney, Dustin & Richards, Ryan M. & Bazilian, Morgan D. & Hensley, Erin & Clough, Greg & Sridhar, Seetharaman, 2021. "Progress towards a circular economy in materials to decarbonize electricity and mobility," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    6. Sylvain Sourisseau & Jean De Beir & Thai Ha Huy, 2019. "The effect of recycling over a mining oligopoly: competition for market shares, collusion for market power within a Cournot-Stackelberg model," Documents de recherche 19-01, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.

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