Enhanced recycling through a materials tax

Abstract

This article attempts to evaluate whether an appropriate consumption-based tax is likely to be successful in reducing demand for certain exhaustible resources, thereby curtailing their rate of depletion and increasing the demand for, and utilization of, secondary materials. The nature of such a tax and anticipated effects (including environmental impact) of its imposition on certain primary materials are considered, concentrating here on one metal, aluminium. The study concludes that a tax based on the exhaustible resources and energy used in the production of a good is likely to create more savings for fossil fuels than for other exhaustible resources.