Addressing the Lemons Problem in Environmental Sustainability:Greenwashing and E-Waste Challenges in African Markets

Abstract

The "lemons problem," as conceptualized by Akerlof in 1970, depicts the adverse effects of information asymmetry in markets wherein sellers are more informed than buyers, consequently causing the leakage of low-quality commodities. This paper explains how this phenomenon plays out in an environmental sense more specifically, through the disguise of greenwashing and e-waste overflowing into African nations. False claims of sustainability by company’s dupe customers and lead to environmental degradation. The agriculture and energysectors are put under the scanner, showing the damage done by monoculture practices and the fraudulent promotion of genetically modified organisms. The importation of electronic waste and used vehicles into Africa serves to underscore the serious health and environmental implications of such exploitation. To answer this, there is the need to first introduce the EPR model where the responsibility of dealing with waste management will be passed to the producers who will be forced to be responsible and sustainable.