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Economic analysis of e-waste market under imperfect information

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  • Prudence Dato

    (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)

Abstract

Despite international regulations that prohibit the trans-boundary movement of electronic and electric waste (e-waste), non-reusable e-waste is often illegally mixed with reusable e-waste and results in being sent to developing countries. As developing countries are not well prepared to properly manage e-waste, this illegal trade has important negative externalities, and creates ‘environmental injustice'. The two main information problems on the e-waste market are imperfect monitoring and imperfect information on the so-called ‘degree of purity' of the e-waste. In this paper, we use a simple bilateral North-South trade model and show that there exists an alternative e-waste market that is better than the standard e-waste market for developing countries. This alternative e-waste market is a joint trade in reusable and non-reusable e-waste. In both cases, we consider demand and supply sides, plus the equilibrium of the e-waste market to show that the alternative market that we propose is better for developing countries.

Suggested Citation

  • Prudence Dato, 2015. "Economic analysis of e-waste market under imperfect information," Working Papers halshs-01172148, HAL.
    • Handle: RePEc:hal:wpaper:halshs-01172148
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01172148v2
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    References listed on IDEAS

    as
    1. Prudence Dato, 2014. "Inducing Sorting Investment and Implementation of an Alternative e-Waste Market under Imperfect Information," Working Papers 2014.13, FAERE - French Association of Environmental and Resource Economists.
    2. Bernard, Sophie, 2015. "North–south trade in reusable goods: Green design meets illegal shipments of waste," Journal of Environmental Economics and Management, Elsevier, vol. 69(C), pages 22-35.
    3. Derek Kellenberg, 2010. "Consumer waste, backhauling, and pollution havens," Journal of Applied Economics, Universidad del CEMA, vol. 13, pages 283-304, November.
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    Full references (including those not matched with items on IDEAS)

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    Keywords

    international trade; market; imperfect information; E-waste;
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