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Tariffs as Environmental Protection

Evidence from the Global South after the China Garbage Shock

Bibliographic Data

ID6228022
AuthorsRachel L Wellhausen (0000-0002-7430-9997, The University of Texas at Austin, corresponding author)
Year2025
Volume55
Publication date2025-01-01
Open AccessYes
TypeARTICLE
VenueBritish Journal of Political Science (JOURNAL)
Journal identifiersISSN: 0007-1234 • E-ISSN: 1469-2112
PublisherCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/s000712342510104x
OpenAlexW7105659280
LanguageEN
References cited40

In the global waste trade, importers buy containers of waste and scrap to meet demand for raw materials, especially in the Global South. But post-processing leftovers generate localized negative externalities. I use the waste trade as a setting to establish that low-capacity states can and do use tariffs as a tool in their environmental policy repertoire. Product-level tariffs can serve as Pigouvian ’sin’ taxes that incentivize private market actors to limit transactions and/or increase state revenue, both channels that can result in improved environmental outcomes. For evidence, I leverage the ‘China garbage shock’: in 2017 China banned imports of twenty-six waste products (HS six-digit), which disrupted economic–environmental trade-offs in other, newly competitive markets awash in diverted imports. Using novel data on 179 traded waste products and product-level tariffs (1996–2020), I demonstrate that those that received the shock raised tariffs in ways consistent with environmental protection

China · Free trade · Garbage · Global South · Leverage (statistics · Raw material · Scrap · Shock (circulatory · Tariff · Food Waste Reduction and Sustainability · Municipal Solid Waste Management · Recycling and Waste Management Techniques

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