An empirical study of plastic waste trade and international aid

Abstract

While developed countries generate a lot of plastic waste, exporting it to developed countries has led to environmental and health problems in the developed countries. Some developing countries have recently restricted imports, and developed countries need to find new export destinations. In addition, international cooperation for waste management increased in recent years, and the presence of international aid affects the differences in trade volume and in response to the plastic revision of the Basel Convention. This research examines whether the waste management aid motivates the waste trade and whether there is a heterogeneity in the effect of the Basel Convention revision in 2021. Our results indicate that the lower income recipient countries reduce the waste plastic trade, and suggest the necessity of international aid for transboundary pollution and the efficiency of the international policy mix.