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Recycling, International Trade, and the Distribution of Pollution: The Effect of Increased U.S. Paper Recycling on U.S. Import Demand for Canadian Paper

Published online by Cambridge University Press:  28 April 2015

Jeffrey A. Michael
Jeffrey A. Michael*
Affiliation:
Economics Graduate Program at North Carolina State University
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Abstract

The quantity of paper recycled in the U.S. has more than doubled since 1985. International trade theory predicts that this will lead to reduced imports of paper, and a shift in domestic production toward waste paper intensive outputs (e.g., newsprint) and away from higher grade products such as printing/writing paper. Import demand elasticities with respect to input prices were estimated for newsprint, printing/writing, and all paper utilizing 20 years of monthly data. The empirical results confirm the predictions of theory, and illustrate a channel through which recycling may be more beneficial for U.S. industry than the domestic environment.

Keywords

import demandpaper industrypollution, recycling
Type
Graduate Student Paper Competition
Information
Journal of Agricultural and Applied Economics , Volume 30 , Issue 1 , July 1998 , pp. 217 - 223
Copyright
Copyright © Southern Agricultural Economics Association 1998

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