Economic analysis of e-waste market under imperfect information

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.
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Contributor : Prudence Dato <>
Submitted on : Thursday, August 6, 2015 - 4:49:47 PM
Last modification on : Tuesday, August 11, 2015 - 1:04:26 AM
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  • HAL Id : halshs-01172148, version 2



Prudence Dato. Economic analysis of e-waste market under imperfect information. 2015. ⟨halshs-01172148v2⟩



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