Abstract
This chapter shows how recycling could have significant impacts on the competitiveness of different countries, and therefore on the global forest products trade, and consumers and producers. The global forest products model (GFPM) is applied to study the worldwide impact of environmental policies in the United States. The wastepaper recovery rate in the United States has increased in recent years, due to the widespread expansion of programs of paper collection and sorting. The programs are a response to long-term environmental, economic, and human health problems associated with landfills, waste incineration, and solid waste management. There also has been a great improvement since the late 1980s in the economics of using wastepaper instead of virgin fiber in paper production. The chapter concludes that environmental policies can affect the competitiveness of countries and, as a result, their net trade and economic welfare. Paper recycling in the United States would affect the pulp and paper markets in other countries and reduction in world prices of paper and paperboard. The total welfare of agents in the world forest sector, measured by consumer and producer surplus, would change little due to increased paper recycling in the United States. However, the welfare of consumers would increase substantially, while that of producers would decrease.
Published Version
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