Secondary materials and international trade

Abstract The paper develops the international trade dimensions of recycling. It begins by outlining the sources of demand and supply that determine the volume, composition and direction of trade in waste materials. The model is intended to describe factors affecting international flows of any type of secondary material, although its usefulness in an empirical context is restricted in many cases by data limitations and complex lag structures on the supply side. Parts of the model are then applied to the case of waste paper, focusing on observed differences in national recycling rates and the role of trade in reconciling those differences.