Munich Personal RePEc Archive

Is India becoming a waste haven of metal scrap?

Sawhney, Aparna and Majumder, Piyali (2015): Is India becoming a waste haven of metal scrap?

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Abstract

India is one of the largest importers of waste in the world with metallic scrap constituting the bulk of the waste imports. While relatively weak environmental standards in developing countries is often seen to be a key factor in the emergence of waste havens in cross-country studies, little attention has been given to examine the pattern of waste trade in a developing country over time. This paper analyzes factors determining metallic waste import in India from different source countries during 1996 through 2012. We empirically test the presence of waste haven effect in metallic scrap import by India after controlling for technology and home market demand. We find that the escalating domestic demand for metal and use of relatively labor-intensive technology are significant factors behind India’s import of metallic wastes from different source countries. We find no empirical evidence of waste haven effect.

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