L. Mainwaring, PRIMARY RESOURCE USE AND VOLUNTARY RECYCLING SCHEMES - DYNAMIC ISSUESIN A GLOBAL CONTEXT, Resource and energy economics, 17(4), 1995, pp. 341-356
A simple dynamic model is developed to show that recycling schemes dep
endent on voluntary action may, in the long run, lead to greater use o
f primary materials. The agents are a primary-materials producer and a
materials user (interpreted as global South and North). Northern prod
ucers of the final good are effectively subsidised by voluntary recycl
ing efforts and their accumulation intensity rises to a degree which m
ay offset the unit savings on primary materials. The most effective wa
y to conserve primary sources in the long run is to reduce the Norther
n savings propensity.